Document:

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                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into as of
December 1, 2000, effected as of October 9, 2000 by and between DIGITERRA, INC.,
a Delaware corporation ("Corporation"), and STEVE BOYD ("Officer").

                                     RECITAL

     Corporation desires to employ Officer in the position set forth on EXHIBIT
A, and Officer is willing to accept such employment by Corporation, on the terms
and subject to the conditions set forth in this Agreement.

                                    AGREEMENT

     THE PARTIES AGREE AS FOLLOWS:

     1.   DUTIES. Officer agrees to be employed by and to serve Corporation in
the position set forth on EXHIBIT A, and Corporation agrees to employ and retain
Officer in such capacity. Officer shall report to CIBER, Inc.'s (DigiTerra's
sole shareholder) Chief Executive Officer. Officer shall devote all of his
business time, energy and skill to the affairs of Corporation, except as
otherwise agreed. Officer shall have powers and duties commensurate with his
position set forth on EXHIBIT A. Officer shall comply with the general
management policies of Corporation as announced from time to time. Officer's
principal place of business with respect to his services to Corporation shall be
within fifty (50) miles of the central business district of Greenwood Village,
Colorado, although Officer shall be required at various times to travel as part
of his duties.

     2.   TERM OF EMPLOYMENT. The initial term of employment of Officer by
Corporation shall be from the date of this Agreement through December 31, 2001,
unless terminated earlier pursuant to this Agreement. This Agreement shall renew
automatically for a period of one year on January 1, 2002 and on each subsequent
anniversary date thereof, subject to the termination provisions hereof.

     3.   SALARY, BENEFITS AND BONUS COMPENSATION.

          3.1  BASE SALARY. Corporation agrees to pay to Officer initially an
annual "Base Salary" as set forth on EXHIBIT A, payable in twenty-six (26) equal
biweekly installments. The Base Salary for each fiscal year (currently January 1
through December 31 of each year) or portion thereof after fiscal year 2000
shall be as determined in the sole discretion of the Board of Directors, but
shall not be less than $325,000 per annum. In the absence of and until any
salary determination by the Board, Officer's Base Salary for a particular fiscal
year shall be identical to Officer's Base Salary in effect on December 31st of
the immediately preceding fiscal year.

          3.2  BONUSES. Officer shall be eligible to receive a bonus for the
fiscal year ending December 31, 2001, provided the Officer remains an employee
through such date. Such

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bonus will be determined in accordance with the formula described on EXHIBIT A
and paid within seventy-five days after the year-end to which such bonus
relates. The bonus for each fiscal year or portion thereof after fiscal year
2001 shall be determined in the sole discretion of the Board of Directors.

          3.3  ADDITIONAL BENEFITS. During the term of his employment, Officer
shall be entitled to the following fringe benefits:

               3.3.1 OFFICER BENEFITS. Officer shall be eligible to participate
in such of Corporation's benefit and compensation plans as may be generally
available to executive officers of Corporation, including, without limitation,
profit sharing, medical, dental and health plans, and life and disability
insurance plans, according to their terms. All such benefit plans may be amended
or discontinued in the sole discretion of Corporation. (See Exhibit A also.)

               3.3.2 BUSINESS EXPENSES. Corporation shall reimburse Officer for
all reasonable and necessary expenses incurred in carrying out his duties under
this Agreement, including travel and entertainment expenses. Officer shall
present monthly to Corporation an itemized account of such expenses in such form
as may be required by Corporation of its senior officers.

               3.3.3 VACATION. Officer shall be entitled to vacation time
generally available to executive officers of Corporation during which vacation
time his compensation shall be paid in full.

          3.4  OPTION TO ACQUIRE COMMON STOCK. Officer shall be granted the
first date within above options, pursuant to and subject to the terms and
conditions of the Equity Incentive Plan and the 250,000 option agreements
executed by and between Officer and CIBER, Inc., to purchase certain shares of
Common Stock of CIBER, Inc. at the exercise price or prices stated in the option
agreements. Any further options shall be granted at the sole discretion of the
Corporation's Board of Directors of CIBER, Inc.

               It is expected that Corporation will establish its own stock
option program. Officer shall also be granted 250,000 options under
Corporation's stock option plan as soon as it is adopted, but no later than
December 31, 2000.

     4.   TERMINATION OF EMPLOYMENT.

          4.1  TERMINATION FOR CAUSE. Termination for Cause (as defined below)
of Officer's employment may be effected by Corporation at any time without
liability except as specifically set forth in this Subsection. The termination
shall be effected by written notification to Officer and shall be effective as
of the time set forth in such notice. At the effective time of a Termination for
Cause, Officer immediately shall be paid all accrued Base Salary and any
reasonable and necessary business expenses incurred by Officer in connection
with his duties hereunder, all to the date of termination. In addition, Officer
shall be entitled to benefits under any benefit plans of Corporation in which
Officer is a participant to the full extent of Officer's rights under such
plans.

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          4.2  TERMINATION OTHER THAN FOR CAUSE. Corporation may effect a
Termination Other Than for Cause (as defined below) of Officer's employment at
any time upon giving written notice to Officer of such termination and without
liability except as specifically set forth in this Subsection. The termination
shall be effective as of the time set forth in such notice, which shall not
precede the date of receipt of the notice. At the effective time of any
Termination Other Than for Cause, Officer shall immediately be paid all accrued
Base Salary and any reasonable and necessary business expenses incurred by
Officer in connection with his duties hereunder, all to the effective time of
termination. Officer shall also be paid any unpaid bonus compensation and such
unpaid bonus compensation shall be paid promptly once it has been determined,
but no later than sixty (45) days after the first quarter end following
termination. Unpaid bonus compensation for the purposes of this Section 4 shall
be an amount equal to the product of (i) 5% of the difference between Officer's
total accrual basis bonus compensation for the immediately preceding fiscal
year, if applicable, and any amount pre-paid against Officer's bonus
compensation for the fiscal year during which termination occurs, and (ii) the
number of full calendar months of Officer's employment during the fiscal year in
which termination occurs. In addition, Officer shall immediately be paid the
percentage of his Base Salary set forth on EXHIBIT A. Officer shall also be
entitled to benefits under any benefit plans of Corporation in which Officer is
a participant to the full extent of Officer's rights under such plans, and
Corporation shall pay Officer's medical, life and disability insurance premiums
under Corporation's plans (or shall pay Officer a sum in cash, not to exceed
$1,000.00 per month, to pay private plan premiums for coverage substantially the
same as Corporation's) for the number of months following termination set forth
on EXHIBIT A.

          4.3  TERMINATION BY REASON OF DISABILITY. If Officer, in the
reasonable judgment of the Board of Directors of Corporation, has failed to
perform his duties under this Agreement on account of illness or physical or
mental incapacity, and such illness or incapacity continues for a period of more
than six (6) months, then the question of whether Officer's illness or
incapacity is reasonably likely to continue shall be submitted to Corporation
or, if disability insurance is maintained on Officer, Officer's disability
insurance carrier for determination. In the event the Corporation or such
insurance carrier determines that Officer is subject to such an illness or
incapacity for which no reasonable accommodation is possible, Corporation shall
have the right to terminate Officer's employment ("Termination for Disability")
by written notification to Officer and payment to Officer of all accrued Base
Salary, unpaid bonus compensation (prorated as provided in Section 4.2) and any
reasonable and necessary business expenses incurred by Officer in connection
with his duties hereunder, all to the date of termination. In addition, Officer
shall immediately be paid the percentage of his Base Salary set forth on EXHIBIT
A. Officer shall also be entitled to benefits under any benefit plans in which
Officer is a participant, including disability benefits which may be provided
pursuant to Section 3.3.1, to the full extent of Officer's rights under such
plans, and Corporation shall pay Officer's medical, life and disability
insurance premiums under Corporation's plans (or shall pay Officer a sum in
cash, not to exceed $1,000.00 per month, to pay private plan premiums for
coverage substantially the same as Corporation's) for the number of months
following termination set forth on EXHIBIT A.

          4.4  DEATH. In the event of Officer's death during the term of
employment, Officer's employment shall be deemed to have terminated as of the
last day of the

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month during which his death occurs, and Corporation shall pay promptly to
his estate (a) all accrued Base Salary, unpaid bonus compensation (as defined
in Section 4.2) and any reasonable and necessary business expenses incurred
by Officer in connection with his duties hereunder, all to the date of
termination, and (b) the percentage of Officer's Base Salary set forth on
EXHIBIT A payable immediately on the effective day of termination. Officer's
estate shall also be entitled to benefits under any benefit plans of
Corporation in which Officer is a participant to the full extent of Officer's
rights under such plans.

          4.5  VOLUNTARY TERMINATION. In the event of a Voluntary Termination
(as defined below) by Officer, Corporation shall immediately pay all accrued
Base Salary and any reasonable and necessary business expenses incurred by
Officer in connection with his duties hereunder, all to the date of termination.
Officer shall also be paid any unpaid bonus compensation calculated as provided
in Section 4.2.

          4.6  TERMINATION UPON A CHANGE IN CONTROL. In the event of a
Termination Upon a Change in Control (as defined below), Officer shall
immediately be paid all accrued Base Salary, unpaid bonus compensation (as
defined in Section 4.2) and any reasonable and necessary business expenses
incurred by Officer in connection with his duties hereunder, all to the date of
termination. In addition, Officer shall immediately be paid the amount set forth
on EXHIBIT A. Officer shall also be entitled to benefits under any benefit plans
of Corporation in which Officer is a participant to the full extent of Officer's
rights under such plans, and Corporation shall pay Officer's medical, life and
disability insurance premiums under Corporation's plans for the number of months
following termination set forth on EXHIBIT A. Notwithstanding the foregoing,
solely in the event of a Termination Upon Change in Control, the aggregate
amount of severance compensation paid to an Officer under this Agreement or
otherwise shall not include any amount that the Corporation is prohibited from
deducting for federal income tax purposes by virtue of Section 280G of the
Internal Revenue Code or any successor provision.

          4.7  OTHER BENEFITS. Nothing in this Article 4 shall be deemed to
limit or restrict any right or benefit of Officer under Corporation's
Certificate of Incorporation, Bylaws or other documents or agreements of the
Corporation applicable to Officer.

     5.   PROTECTION OF CORPORATION'S BUSINESS.

          5.1  NO COMPETITION. Officer shall not, during the term of his
employment and for eighteen (18) months following the termination of his
employment, work as an employee, or independent contractor or become an investor
or lender of any business, corporation, partnership or other entity engaged in a
Competing Business. An investment by Officer of up to 2% of the outstanding
equity in a publicly-traded corporation shall not constitute a violation of this
Section 5.1. A "Competing Business" is a business which Corporation has engaged
in, or has actively investigated engaging in, at any time during the twenty-four
(24) months prior to the termination of Officer's employment in which Officer
had responsibility to manage, direct or supervise.

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          5.2  NO SOLICITATION OF CLIENTS. Officer shall not, during the term of
his employment and for eighteen (18) months following the termination of his
employment (unless Corporation grants him written authorization): (a) call upon,
cause to be called upon, solicit or assist in the solicitation of, any client
or potential client of Corporation for the purpose of selling, renting or
supplying any product or service competitive with the products or services of
Corporation; (b) provide any product or services to any client or potential
client of Corporation which is competitive with the products or services of
Corporation; or (c) request, recommend or advise any client or potential
client to cease or curtail doing business with the Corporation. Any
individual, governmental authority, corporation, partnership or other entity
to whom Corporation has provided services or products at any time prior to or
during Officer's employment or to whom Corporation has made one or more sales
or sales calls during the eighteen (18) month period preceding the date of
termination of Officer's employment shall be deemed a client or potential
client.

          5.3  NO HIRE OF OTHER EMPLOYEES OR CONTRACTORS. Except on behalf of
the Corporation, Officer shall not, during the term of his employment and for a
period of eighteen (18) months following the termination of his employment: (a)
employ, engage or seek to employ or engage any individual or entity, on behalf
of Officer or any entity (including a client of Corporation), who is employed or
engaged by Corporation or who was employed or engaged by the Corporation during
the six (6) month period preceding Officer's termination; (b) solicit, recommend
or advise any employee of the Corporation or independent contractor to terminate
their employment or engagement with the Corporation for any reason; or (c)
solicit recruiting prospects and/or candidates whose files are actively
maintained or have been maintained during the last six (6) months prior to
Officer's termination by the Corporation.

     6.   CONFIDENTIALITY.

          6.1  CONFIDENTIAL INFORMATION AND MATERIALS. All of the Confidential
Information and Materials, as defined herein, are and shall continue to be the
exclusive confidential property and trade secrets of Corporation. Confidential
Information and Materials have been or will be disclosed to Officer solely by
virtue of his employment with Corporation and solely for the purpose of
assisting him in performing his duties for Corporation. "Confidential
Information and Materials" refers to all information belonging to or used by
Corporation or Corporation's clients relating to internal operations, procedures
and policies, finances, income, profits, business strategies, pricing, billing
information, compensation and other personnel information, client contacts,
sales lists, employee lists, technology, software source codes, programs, costs,
marketing plans, developmental plans, computer programs, computer systems,
inventions, developments, personnel manuals, computer program manuals, programs
and system designs, and trade secrets of every kind and character, whether or
not they constitute a trade secret under applicable law and whether developed by
Officer during or after business hours. Officer acknowledges and agrees all
Confidential Information and Materials shall, to the extent possible, be
considered works made for hire for the Corporation under applicable copyright
law. To the extent any Confidential Information and Materials are not deemed to
be a work made for hire, Officer hereby assigns to the Corporation any rights he
may have or may acquire in such Confidential Information and Materials as they
are created, throughout the world, in perpetuity. Further, Officer hereby waives
any and all moral rights he may have in such Confidential Information and
Materials. Notwithstanding the foregoing, the

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Corporation acknowledges that it shall have no right to inventions or other
material for which no equipment, supplies, facilities or Confidential
Information and Material of the Corporation are used and which are developed
entirely on Officer's own time and (i) do not relate directly to the business
of the Corporation or (ii) do not result from any work performed by Officer
hereunder.

          6.2  NON-DISCLOSURE AND NON-USE. Officer may use Confidential
Information and Material while an employee of Corporation and in the course of
that employment to the extent deemed necessary by Corporation for the
performance of Officer's responsibilities. Such permission expires upon
termination of his employment with Corporation or on notice from Corporation.
Officer shall not, either during or after his employment with Corporation,
disclose any Confidential Information or Materials to any person, firm,
corporation, association or other entity for any reason or purpose unless
expressly permitted by Corporation in writing. Officer shall not use, in any
manner other than to further Corporation's business, any Confidential
Information or Materials of Corporation. Confidential information shall exclude
ideas, concepts, and know-how obtained from third parties or within the public
domain. Upon termination of his employment, Officer shall immediately return all
Confidential Information or Materials or other property of Corporation or its
clients or potential clients in his possession or control.

     7.   DEFINITIONS.

          7.1  DEFINITIONS. For purposes of this Agreement, the following terms
shall have the following meanings:

               7.1.1 "Affiliated Company" shall mean any corporation or other
entity that is directly, or through one or more intermediaries, controls, is
controlled by, or is under common control with the Corporation. As used herein,
"control" means the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of such entity, whether
through ownership of voting securities or other interests, by contract or
otherwise.

               7.1.2 "Termination for Cause" shall mean termination by
Corporation of Officer's employment by Corporation by reason of (i) Officer's
failure to comply with the lawful directives of the Board of Directors or the
Chief Executive Officer other than as a result of a good faith dispute with
respect to the strategic direction of the Corporation, (ii) any criminal act or
willful misconduct by Officer that is injurious in any significant respect to
the property, operations, business or reputation of the Corporation, or (iii)
any material breach by Officer of any provision of the Agreement, or Officer's
failure to exercise good faith efforts to discharge his responsibilities
hereunder, if such material breach or failure has not been cured within thirty
(30) days following written notice by the Corporation to the Officer of such
breach or failure setting forth with specificity the nature of the breach or
failure.

               7.1.3 "Termination Other Than for Cause" shall mean termination
by Corporation of Officer's employment by Corporation other than a Termination
for Cause, Termination Upon Change in Control, Termination for Disability, or
for any or no reason.

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               7.1.4 "Termination Upon a Change in Control" shall mean a
termination by Corporation or any successor thereto of Officer's employment with
the Corporation or such successor for any reason or a termination by the Officer
for Good Reason (as defined below) of the Officer's employment with the
Corporation or any successor thereto within one hundred eighty (180) days
from the date on which any of the following occurs: (a) any "person" or
"group" (within the meaning of Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934 (the "1934 Act")), other than Bobby G. Stevenson or a
trustee or other fiduciary holding securities under an employee benefit plan
of Corporation, is or becomes the "beneficial owner" (as defined in Rule
13d-3 under the 1934 Act), directly or indirectly, of more than thirty three
percent (33%) of the then outstanding voting stock of Corporation; or (b) at
any time during any period of three consecutive years (not including any
period prior to the Effective Date), individuals who at the beginning of such
period constitute the Board (and any new director whose election by the Board
or whose nomination for election by Corporation's stockholders was approved
by a vote of at least two-thirds of the directors then still in office who
either were directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to
constitute a majority thereof; or (c) the stockholders of Corporation approve
a merger or consolidation of Corporation with any other corporation, other
than a merger or consolidation which would result in the voting securities of
Corporation outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities
of the surviving entity) at least 80% of the combined voting power of the
voting securities of Corporation or such surviving entity outstanding
immediately after such merger or consolidation, or the stockholders approve a
plan of complete liquidation of Corporation or an agreement for the sale or
disposition by Corporation of all or substantially all of Corporation's
assets.

          For purposes of this Agreement "Good Reason" shall include, but not be
limited to, any of the following (without the Officer's express written
consent): (a) the assignment to the Officer by the Corporation of duties
inconsistent with, or a substantial diminution in the nature or status of, the
Officer's responsibilities immediately prior to a Change in Control other than
any changes primarily attributable to the fact that the Corporation's securities
are no longer publicly traded; (b) a reduction by the Corporation in the
Officer's compensation, benefits, or perquisites as in effect on the date of a
Change in Control; (c) a relocation of the Corporation's principal offices to a
location beyond a thirty (30) mile radius of the central business district of
Denver, Colorado, or the Officer's relocation to any place other than the
Denver, Colorado offices of the Corporation, except for reasonably required
travel by the Officer on the Corporation's business; (d) any material breach by
the Corporation of any provision of this Agreement, if such material breach has
not been cured within thirty (30) days following written notice by the Officer
to the Corporation of such breach setting forth with specificity the nature of
the breach; or (e) any failure by the Corporation to obtain the assumption and
performance of this Agreement by any successor (by merger, consolidation or
otherwise) or assign of the Corporation.

               7.1.5 "Voluntary Termination" shall mean termination by Officer
of Officer's employment with Corporation, but shall not include (i) constructive
termination by Corporation by reason of material breach of this Agreement by
Corporation; (ii) Termination Upon a Change in Control; and (iii) termination by
reason of Officer's death or disability as

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described in Subsections 4.3 and 4.4. Voluntary Termination shall include a
termination by Corporation after its receipt of a notice of an otherwise
Voluntary Termination from Officer.

     8.   REMEDIES.

          8.1  LIQUIDATED DAMAGES.

               8.1.1 If Officer violates Subsection 5.1, Officer shall pay to
Corporation the sum of $100,000.00 as liquidated damages to compensate
Corporation for its lost investment of money for recruitment, training, cost of
replacement, lost revenues and other damages due to the likely disruption of the
operation of Corporation's business.

               8.1.2 If Officer violates Subsection 5.2, Officer shall pay to
Corporation as liquidated damages the greater of Corporation's gross billings to
the client to which products or services are supplied in violation of Subsection
5.2 during the year immediately prior to the first improper solicitation or
$25,000.00, to compensate Corporation for its lost revenue, client development
expenses and other damages.

               8.1.3 If Officer violates Subsection 5.3, Officer shall pay to
Corporation as liquidated damages, in compensation for its recruitment and
training costs, lost revenues and other damages, the following sums for each
employee or independent contractor hired or engaged in violation of Subsection
5.3:

<TABLE>
<CAPTION>
          Employee or Independent Contractor               Amount
          ----------------------------------               ------
<S>                                                       <C>
          Vice-President or other officer                 $100,000
          Other Manager or Recruiter                      $ 50,000
          Marketer or other sales personnel               $ 50,000
          Programmers or other billable personnel         $ 12,500
          Other office staff                              $  5,000
</TABLE>

               8.1.4 Officer and Corporation have carefully considered the issue
of liquidated damages and after negotiation agree that they are a reasonable
compromise after attempting to estimate what the actual damages would be and
assessing the risk of collection.

               8.1.5 Officer authorizes Corporation to disclose the terms of
Sections 5, 6 and 8 of this Agreement to any subsequent employer or client of
Officer.

          8.2  EQUITABLE REMEDIES. The service rendered by Officer to
Corporation and the information disclosed to Officer during his employment
are of a unique and special character, and any breach of Sections 5 or 6
hereof will cause Corporation irreparable injury and damage which will be
extremely difficult to quantify. Although the parties have agreed on
liquidated damages for some of the potential breaches by Officer, they agree
that because of the risk of collection and intangibles which are impossible
to measure, Corporation will be entitled to, in

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addition to all other remedies available to it, injunctive relief to prevent
a breach and to secure the enforcement of all provisions of Sections 5 and 6.

          8.3  COSTS. If litigation is brought to enforce or interpret any
provision contained herein, the court shall award reasonable attorneys' fees
and disbursements to the prevailing party as determined by the court.

          8.4  SEVERABILITY. THE PARTIES HAVE CAREFULLY CONSIDERED ALL OF
SECTIONS 5, 6 AND 8 AND AGREE THAT THEY REPRESENT A PROPER BALANCING OF THEIR
INTERESTS AND WILL NOT PREVENT OFFICER FROM EARNING A LIVING AFTER
TERMINATION OF HIS EMPLOYMENT. It is the express intent of the parties hereto
that the obligations of, and restrictions on, the parties as provided in
Sections 5 and 6 shall be enforced and given effect to the fullest extent
legally permissible. If, in any judicial proceeding, a court shall refuse to
enforce one or more of the covenants or agreements contained in this
Agreement because the duration thereof is too long, the scope thereof is too
broad or some other reason, for the purpose of such proceeding, the court may
reduce such duration or scope to the extent necessary to permit the
enforcement of such obligations and restrictions.

     9.   MISCELLANEOUS.

          9.1  PAYMENT OBLIGATIONS. Corporation's obliga tion to pay Officer the
compensation provided herein is subject to the condition precedent that Officer
perform his obligations.

          9.2  WAIVER. The waiver of the breach of any provision of this
Agreement shall not operate or be construed as a waiver of any subsequent breach
of the same or other provision hereof.

          9.3  ENTIRE AGREEMENT; MODIFICATIONS. This Agreement represents the
entire understanding between the parties with respect to the subject matter
hereof, and this Agreement supersedes any and all prior understandings,
agreements, plans and negotiations, whether written or oral, with respect to the
subject matter hereof, including, without limitation, any under standings,
agreements or obligations respecting any past or future compensation, bonuses,
reimbursements or other payments to Officer from Corporation. All modifications
to this Agreement must be in writing and signed by the party against whom
enforcement of such modification is sought; provided; however, that the
provisions concerning Position, Base Salary (subject to the limitation in
Section 3.1) and Bonus set forth on Exhibit A may be modified at any time by the
Board of Directors in its sole discretion.

          9.4  NOTICES. All notices and other communications under this
Agreement shall be in writing and shall be given by hand delivery, or
first-class mail, certified or registered with return receipt requested, or by
commercial overnight courier or by fax and shall be deemed to have been duly
given upon hand delivery, three (3) days after mailing, the first business day
following delivery to a commercial overnight courier or upon receipt of a fax
(as confirmed by a machine generated report), addressed as follows:

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     If to Corporation:

          DigiTerra, Inc.
          5251 DTC Parkway, #1400
          Greenwood Village, Colorado  80111
          Attn:  Corporate Secretary

     With a copy to:

          CIBER, Inc.
          5251 DTC Parkway, Suite 1400
          Greenwood Village, Colorado  80111
          Attn:  Chief Executive Officer

          Wanda J. Abel, Esq.
          Davis, Graham & Stubbs LLP
          370 Seventeenth Street
          P.O. Box 185
          Denver, Colorado  80201-0185

     If to Officer:

          Steve Boyd
          1250 E. Oxford Lane
          Cherry Hills Village, CO  80110

Any party may change such party's address for notices by notice given pursuant
to this Section 9.4.

          9.5  HEADINGS. The Section headings herein are intended for reference
and shall not by themselves determine the construction or interpretation of this
Agreement.

          9.6  GOVERNING LAW; CONSENT TO JURISDICTION. This Agreement shall be
governed by and construed in accordance with the laws of the State of Colorado
without application of its conflict of laws rules. Officer hereby submits to the
exclusive jurisdiction and venue of the District Court of the State of Colorado
for the City and County of Denver or the United States District Court for the
District of Colorado for purposes of any legal action. Officer agrees that
service upon Officer in any such action may be made by first-class mail,
certified or registered, in the manner provided for delivery of notices in
Section 9.4.

          9.7  SEVERABILITY. Should a court or other body of competent
jurisdiction determine that any provision of this Agreement is excessive in
scope or otherwise invalid or unenforceable, such provision shall be adjusted
rather than voided, if possible, so that it is

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enforceable to the maximum extent possible, and all other provisions of the
Agreement shall be deemed valid and enforceable to the extent possible.

          9.8  SURVIVAL OF CORPORATION'S OBLIGATIONS. Corporation's obligations
hereunder shall not be terminated by reason of any liquidation, dissolution,
bankruptcy, cessation of business or similar event relating to Corporation. This
Agreement shall not be terminated by any merger or consolidation or other
reorganization of Corporation. In the event any such merger, consolidation or
reorganization shall be accomplished by transfer of stock or by transfer of
assets or otherwise, the provisions of this Agreement shall be binding upon and
inure to the benefit of the surviving or resulting corporation or person. This
Agreement shall be binding upon and inure to the benefit of the executors,
administrators, heirs, successors and assigns of the parties; provided, however,
that except as provided in this Subsection in the event of a merger
consolidation or reorganization of the Corporation, including the sale of
substantially all of its assets, this Agreement shall not be assignable either
by Corporation or by Officer.

          9.9  COUNTERPARTS. This Agreement may be executed in one or more
counterparts, all of which taken together shall constitute one and the same
Agreement.

          9.10 WITHHOLDINGS. All compensation and benefits to Officer hereunder
shall be reduced by all federal, state, local and other withholdings and similar
taxes and payments required by applicable law. Corporation may withhold amounts
due it from Officer from amounts due under this Agreement to Officer.

          9.11 DIRECTOR'S AND OFFICER'S INSURANCE. Corporation shall use its
best efforts to obtain coverage for Officer under any insurance policy now in
force or hereafter obtained during the term of this Agreement insuring officer
and directors of Corporation for liability incurred by reason of the fact that
Officer is or was a director or officer of Corporation or, while serving as a
director or officer of Corporation, he is or was serving at the request of
Corporation as a director officer, partner or trustee of, or in any similar
managerial of fiduciary position of, or as an employee or agent of, another
corporation, partnership, joint venture, trust, association or other entity.

     IN WITNESS WHEREOF, the parties hereto have executed this Employment
Agreement as of the date first above written.

OFFICER                                 DIGITERRA, INC.

/s/ Steve Boyd                          By: /s/ Mac J. Slingerlend
-----------------------------              ----------------------------------
Steve Boyd                                 Mac J. Slingerlend, Vice President

                                       11<PAGE>

                                FOURTH AMENDMENT

         THIS FOURTH AMENDMENT dated as of March 16, 2001 (this "Amendment")
amends the Second Amended and Restated Credit Agreement dated as of February
3, 1999 (as previously amended, the "Credit Agreement") among U S Liquids
Inc. (the "Company"), various financial institutions (the "Banks"), Fleet
National Bank, as Syndication Agent, and Bank of America, N.A. (formerly
known as Bank of America National Trust and Savings Association), as
administrative agent (in such capacity, the "Administrative Agent"). Terms
defined in the Credit Agreement are, unless otherwise defined herein or the
context otherwise requires, used herein as defined therein.

         WHEREAS, the Company, the Banks and the Administrative Agent have
entered into the Credit Agreement; and

         WHEREAS, the parties hereto desire to amend the Credit Agreement in
certain respects as more fully set forth herein;

         NOW, THEREFORE, the parties hereto agree as follows:

         SECTION 1 AMENDMENTS REQUIRING THE CONSENT OF THE REQUIRED BANKS.
Subject to the satisfaction of the conditions precedent set forth in SECTION
5(a), the Credit Agreement shall be amended as follows.

         1.1 DELETION OF DEFINITIONS. The definitions of "Shreveport Facility
Reserve Charges" and "Third Quarter Special Charges" are deleted in their
entirety.

         1.2 ADDITION OF DEFINITIONS. The following definitions are added to
the Credit Agreement in appropriate alphabetical sequence:

             ADJUSTED EBITDA means, for any Computation Period, the total of (i)
         EBITDA for such Computation Period plus (ii) any Fourth Quarter Special
         Charges taken during such Computation Period plus (iii) any Detroit
         Facility Reserve Charges taken during such Computation Period minus
         (iv) any non-cash income during such Computation Period resulting from
         the Settlement Agreement dated December 21, 2000 between the Company
         and Waste Management, Inc.

             ADJUSTED WORKING CAPITAL means, at any time, the excess of:

             (a) (i) the consolidated current assets of the Company and its
         Subsidiaries (other than deferred taxes and assets held for sale as
         shown on the most recent financial statements delivered by the Company
         pursuant to SECTION 10.1) LESS (ii)

<PAGE>

         the amount of cash and cash equivalents included in such consolidated
         current assets;

         OVER

             (b) (i) the consolidated current liabilities of the Company and its
         Subsidiaries LESS (ii) to the extent included in such consolidated
         current liabilities, the sum of (x) all short-term Debt of the Company
         and its Subsidiaries and (y) any portion of long-term Debt of the
         Company and its Subsidiaries which is payable within one year from the
         date of determination.

             ASSET SALE means the sale, lease, assignment or other transfer for
         value by the Company or any Subsidiary to any Person (other than the
         Company or any Subsidiary) of any asset or right of the Company or such
         Subsidiary (including any sale or other transfer of stock of any
         Subsidiary, whether by merger, consolidation or otherwise, but
         excluding any sale of assets or rights in the ordinary course of
         business).

             AVAILABILITY AMOUNT means the Commitment Amount minus $5,000,000
         (or minus such lesser amount as the Required Banks, in their sole and
         complete discretion, may specify in writing to the Company).

                  EXCESS CASH FLOW means, for any period, the remainder of

             (a) EBITDA for such period (excluding any portion of EBITDA
         attributable to any settlement with National Steel, Inc. for such
         period),

             LESS

             (b) the total, without duplication of

             (i) regularly scheduled principal payments made with respect to any
         long-term Debt of the Company and its Subsidiaries (other than the
         Loans) during such period,

             PLUS

             (ii) cash payments made in such period with respect to Capital
         Expenditures,

             PLUS

                                       2
<PAGE>

             (iii) all federal, state, local and foreign income taxes paid by
         the Company and its Subsidiaries during such period,

             PLUS

             (iv) cash Interest Expense of the Company and its Subsidiaries
         during such period,

             PLUS

             (v) any increase in Adjusted Working Capital during such period,

             MINUS

             (vi) any decrease in Adjusted Working Capital during such period.

             FOURTH QUARTER SPECIAL CHARGES means the up to $35,970,000 of
         special charges taken by the Company for the fourth Fiscal Quarter of
         2000.

             NET CASH PROCEEDS means:

             (a) with respect to any Asset Sale, the aggregate cash proceeds
         (including cash proceeds received by way of deferred payment of
         principal pursuant to a note, installment receivable or otherwise, but
         only as and when available to the Company) received by the Company or
         any Subsidiary pursuant to such Asset Sale, net of (i) the direct costs
         relating to such Asset Sale (including sales commissions, legal,
         accounting and investment banking fees and severance payments for
         discharged employees), (ii) taxes paid or reasonably estimated by the
         Company to be payable as a result thereof (after taking into account
         any available tax credits or deductions and any tax sharing
         arrangements), and (iii) amounts required to be applied to the
         repayment of any Debt secured by a Lien on the asset subject to such
         Asset Sale (other than Debt hereunder);

             (b) with respect to any issuance of equity securities, the
         aggregate cash proceeds received by the Company or any Subsidiary
         pursuant to such issuance, net of the direct costs relating to such
         issuance (including sales and underwriter's discounts and commissions
         and legal, accounting and investment banking fees); and

             (c) with respect to any settlement with National Steel, Inc., the
         aggregate proceeds received by the Company pursuant to such agreement,
         net of (i) the direct costs relating to the execution of such agreement
         (including legal

                                       3
<PAGE>

         fees) and (ii) taxes paid or reasonably estimated by the Company to be
         payable as a result thereof (after taking into account any available
         tax credits or deductions and any tax sharing arrangements).

             SPECIFIED PROPERTY means, as the context requires, (i) the property
         in Los Fresnos, Texas owned by U S Liquids of Central Texas, L.L.C. or
         (ii) the Allison Grease plant and the Re-Claim plant in Houston, Texas
         owned by U S Liquids of Houston, L.L.C.

         1.3 AMENDMENTS TO DEFINITIONS. (a) The definition of "Commitment
Amount" is amended by deleting the reference to "$150,000,000" therein and
substituting "$120,000,000" therefor.

         (b) The definition of "EBITDA" is amended by deleting the proviso at
the end thereof.

         (c) The definition of "Interest Expense" is amended by deleting the
proviso at the end thereof.

         (d) The definitions of "Funded Debt to EBITDA Ratio," "Interest
Coverage Ratio" and "Recoveries" are amended in their entirety to read as
follows, respectively:

             FUNDED DEBT TO ADJUSTED EBITDA RATIO means, at any time, the ratio
         of (a) Funded Debt at such time to (b) Adjusted EBITDA for the
         Computation Period ending on the last day of the most recent Fiscal
         Quarter with respect to which the Company has delivered financial
         statements.

             INTEREST COVERAGE RATIO means, for any Computation Period, the
         ratio of (a) Adjusted EBITDA to (b) cash Interest Expense for such
         Computation Period.

             RECOVERIES means, without duplication, (i) any amounts (including
         insurance proceeds and proceeds from any judgment or settlement)
         received by the Company or any Subsidiary arising out of any matter
         which gave rise to any Detroit Facility Reserve Charges and (ii) any
         reversal of any reserve established in connection with any Detroit
         Facility Reserve Charges.

         1.4 AMENDMENT TO SECTION 2.1.1. Section 2.1.1 is amended by deleting
the reference to "Commitment Amount" therein and substituting "Availability
Amount" therefor.

         1.5 AMENDMENT TO SECTION 2.1.2. Section 2.1.2 is amended by deleting
the reference to "Commitment Amount" therein and substituting "Availability
Amount" therefor.

                                       4
<PAGE>

         1.6 DELETION OF SECTION 2.1.3. Section 2.1.3 is deleted in its
entirety.

         1.7 AMENDMENT TO SECTION 2.4.1. Section 2.4.1 is amended by (a)
deleting the reference to "$15,000,000" therein and substituting "$5,000,000"
therefor and (b) deleting the reference to "Commitment Amount" therein and
substituting "Availability Amount" therefor.

         1.8 AMENDMENT TO SECTION 4.3. Section 4.3 is amended by (a) deleting
the second reference to "Commitment Amount" contained in the last sentence of
that Section and substituting "Availability Amount" therefor and (b) deleting
the reference to "SECTION 6.1.2" therein and substituting "SECTION 6.1(b)".

         1.9 AMENDMENTS TO SECTION 6.1. Section 6.1 is amended as set forth
below.

         (a) The caption "(a) VOLUNTARY REDUCTION OR TERMINATION OF THE
COMMITMENTS." is inserted at the beginning of such Section.

         (b) The following new subsections (b)(i) through (b)(iv) are inserted
at the end thereof:

             (b) MANDATORY REDUCTIONS OF THE COMMITMENTS. (i) The Commitment
         Amount shall be permanently reduced by (A) $5,000,000 on each of July
         31, 2001 and December 31, 2001 and (B) $2,500,000 on the last day of
         each Fiscal Quarter thereafter.

             (ii) Concurrently with the receipt by the Company or any Subsidiary
         of any Net Cash Proceeds from any Asset Sale, issuance of equity (other
         than any equity issued in connection with the employee stock purchase
         plan of the Company), issuance of Debt (other than Debt permitted under
         SECTION 10.7(a), (b), (c), (d), (e), (g) or (h)) or any settlement with
         National Steel, Inc., the Commitment Amount shall be permanently
         reduced by an amount (rounded down, if necessary, to an integral
         multiple of $100,000) equal to (A) so long as (and to the extent that)
         the Commitment Amount has not previously or concurrently been reduced
         by $10,000,000 after the effective date of the Fourth Amendment to this
         Agreement, 100% of such Net Cash Proceeds; and (B) thereafter, (x) 100%
         of all Net Cash Proceeds from any Asset Sale and (y) 50% of all other
         such Net Cash Proceeds; PROVIDED that the requirements of this CLAUSE
         (ii) shall not apply to any Net Cash Proceeds from any Asset Sale that
         are used to purchase similar assets within 60 days after such Asset
         Sale. All reductions of the Commitment Amount pursuant to CLAUSE (A) of
         the preceding sentence shall be applied to reduce the remaining
         scheduled reductions of the Commitment Amount pursuant to SUBSECTION
         (b) above in chronological order. All reductions of the Commitment
         Amount pursuant to CLAUSE (B) of the second preceding sentence

                                       5
<PAGE>

         shall be applied to reduce the Commitment Amount without reducing any
         scheduled reduction of the Commitment Amount pursuant to CLAUSE (B).

             (iii) Concurrently with the delivery of the compliance certificate
         as of the end of any Fiscal Year pursuant to SECTION 10.1.3, beginning
         with the Fiscal Year ending December 31, 2001, the Commitment Amount
         shall be permanently reduced by an amount (rounded down, if necessary,
         to an integral multiple of $100,000) equal to 100% of Excess Cash Flow
         for such Fiscal Year.

             (iv) Any reduction of the Commitment Amount pursuant to CLAUSES (i)
         through (iii) above shall reduce the Commitments pro rata among the
         Banks according to their respective Percentages.

         1.10 AMENDMENT TO SECTION 6.2. Section 6.2 is amended by (a) inserting
the caption "(a) VOLUNTARY PREPAYMENTS." at the beginning of such Section, (b)
deleting the last two sentences of the existing Section 6.2 and (c) inserting
the following new subsections (b) and (c) at the end thereof:

             (b) MANDATORY PREPAYMENTS. On each date on which the Commitment
         Amount is reduced pursuant to SECTION 6.1, the Company shall prepay
         Loans in the amount, if any, by which the Total Outstandings exceed the
         Availability Amount after giving effect to such reduction.

             (c) ALL PREPAYMENTS. Each partial prepayment shall be in a
         principal amount of $100,000 or a higher integral multiple thereof. Any
         prepayment of a Eurodollar Loan on a day other than the last day of an
         Interest Period therefor shall include interest on the principal amount
         being repaid and shall be subject to SECTION 8.4.

         1.11 AMENDMENT TO SECTION 9.5. Section 9.5 is amended by deleting the
reference to "December 31, 1997" therein and substituting "December 31, 2000"
therefor.

         1.12 AMENDMENT TO SECTION 10.6.1. Section 10.6.1 is amended by (a)
deleting the reference to "$100,000,000" and substituting "$148,400,000"
therefor, (b) deleting the reference to "October 1, 1998" and substituting
"December 31, 2000" therefor and (c) deleting the reference to "the Effective
Date" and substituting "December 31, 2000" therefor.

         1.13 AMENDMENT TO SECTION 10.6.2. Section 10.6.2 is amended in its
entirety to read as follows:

                                       6
<PAGE>

             10.6.2 MINIMUM INTEREST COVERAGE. Not permit the Interest Coverage
         Ratio for any Computation Period to be less than the applicable ratio
         set forth below:

<TABLE>
<CAPTION>
                           Computation                        Interest
                           Period Ending                     Coverage Ratio
                           -------------                     --------------
<S>                                                          <C>
                  12/31/00 through 6/30/01                    2.25 to 1.0
                  7/1/01 through 9/30/01                      2.50 to 1.0
                  10/1/01 and thereafter                      3.00 to 1.0.
</TABLE>

         1.14 AMENDMENT TO SECTION 10.6.3. Section 10.6.3 is amended in its
entirety to read as follows:

             10.6.3 FUNDED DEBT TO ADJUSTED EBITDA RATIO. Not permit the Funded
         Debt to Adjusted EBITDA Ratio during any period set forth below to
         exceed the applicable ratio set forth below:

<TABLE>
<CAPTION>
                                                           Funded Debt
                           Period                    to Adjusted EBITDA Ratio
                           ------                    ------------------------
<S>                                                  <C>
                  12/31/00 through 6/29/01                4.50 to 1.0
                  6/30/01 through 9/29/01                 4.25 to 1.0
                  9/30/01 through 12/30/01                3.75 to 1.0
                  12/31/01 and thereafter                 3.00 to 1.0.
</TABLE>

         1.15 AMENDMENT TO SECTION 10.6.4. Section 10.6.4 is amended in its
entirety to read as follows:

             10.6.4 CAPITAL EXPENDITURES. Not permit the aggregate amount of
         Capital Expenditures (excluding amounts, if any, paid to consummate
         acquisitions permitted by SECTION 10.11(c) which constitute Capital
         Expenditures) made by the Company and its Subsidiaries to exceed (a)
         $6,000,000 during the first two Fiscal Quarters of any Fiscal Year
         ending after December 31, 2000 or (b) $10,000,000 during any Fiscal
         Year ending after December 31, 2000.

         1.16 AMENDMENT TO SECTION 10.7. Section 10.7 is amended as follows:

         (a) Subsection (b) is amended by deleting the reference to
"$10,000,000" therein and substituting "$5,000,000" therefor.

                                       7
<PAGE>

         (b) Subsection (c) is amended by deleting the reference to
"$20,000,000" therein and substituting "$5,000,000" therefor.

         1.17 AMENDMENT TO SECTION 10.9. Section 10.9 is amended by deleting the
reference to "$9,000,000" therein and substituting "$6,000,000" therefor.

         1.18 AMENDMENT TO SECTION 10.11. Section 10.11 is amended as follows:

         (a) Subsection (c) is amended in its entirety to read as follows:

             (c) any such other purchase or acquisition by the Company or any
         Subsidiary of the assets or stock of any other Person made with the
         prior written consent of all Banks;

         (b) Subsection (d) is amended in its entirety to read as follows:

             (d) sales and dispositions of assets (including the stock of
         Subsidiaries) so long as the net book value of all assets sold or
         otherwise disposed of in any Fiscal Year (excluding the stock or assets
         of the entities listed on SCHEDULE 10.9(d) and any Specified Property)
         does not exceed $500,000.

         1.19 AMENDMENT TO SECTION 10.23. Section 10.23 is amended by (a)
deleting the reference to "$300,000" therein and substituting "$1,500,000"
therefor and (b) deleting the reference to "fair market value" therein and
substituting "net book value" therefor.

         1.20 AMENDMENT TO SECTION 10.24. Section 10.24 is amended by (a)
deleting the reference to "$300,000" therein and substituting "$1,500,000"
therefor and (b) deleting the reference to "fair market value" therein and
substituting "net book value" therefor.

         1.21 ADDITION OF SECTION 10.26. A new Section 10.26 is added to the
Credit Agreement to read as follows:

             10.26 MINIMUM CUMULATIVE EBITDA. Not permit cumulative EBITDA for
         any period beginning on January 1, 2001 and ending on the last day of
         any month thereafter to be less the applicable amount set forth below:

<TABLE>
<CAPTION>
                      Period Ending                    Cumulative EBITDA
                      -------------                    -----------------
<S>                                                    <C>
                  January 31, 2001                     $1,572,292
                  February 28, 2001                    $3,853,461
                  March 31, 2001                       $6,704,909
                  April 30, 2001                       $9,285,012

                                       8
<PAGE>

                  May 31, 2001                         $12,164,383
                  June 30, 2001                        $15,721,004
                  July 31, 2001                        $19,000,514
                  August 31, 2001                      $22,423,370
                  September 30, 2001                   $25,971,274
                  October 31, 2001                     $29,241,373
                  November 30, 2001                    $32,203,966
                  December 31, 2001                    $34,842,397;
</TABLE>

         PROVIDED that, for any period after the sale by the Company of any of
         the Subsidiaries listed on SCHEDULE 10.9(d) or the Specified Property
         located in Los Fresnos, Texas, there shall be subtracted from the
         amounts set forth above the projected EBITDA for such Subsidiary (or
         the relevant assets of such Subsidiary) set forth on SCHEDULE 10.26 for
         each month from the month in which such sale occurs.

         1.22 AMENDMENT TO SCHEDULES 1.1, 9.6, 9.8 AND 9.15. Each of Schedules
1.1, 9.6, 9.8 and 9.15 is amended in its entirety to read as set forth on
SCHEDULE 1.1, SCHEDULE 9.6, SCHEDULE 9.8 and SCHEDULE 9.15 hereto, respectively.

         1.23 AMENDMENT TO EXHIBIT B. Exhibit B is amended in its entirety to
read as set forth on EXHIBIT B hereto.

         1.24 ADDITION OF SCHEDULES 10.9(d) AND 10.26. New Schedules 10.9(d) and
10.26 are added to the Credit Agreement to read as set forth on SCHEDULE 10.9(d)
and SCHEDULE 10.26 hereto, respectively.

         SECTION 2 AMENDMENT REQUIRING THE CONSENT OF EACH BANK. Subject to the
satisfaction of the conditions precedent set forth in SECTION 5(b), the
definition of "Termination Date" set forth in Section 1.1 is amended in its
entirety to read as follows:

             TERMINATION DATE means the earlier to occur of (a) December 2,
         2002; PROVIDED that, without in any way affecting the rights of the
         Agent and the Banks under SECTION 12.2, if any Event of Default occurs
         after March 16, 2001 and on or prior to September 2, 2002, the
         scheduled Termination Date shall, upon notice by the Required Banks to
         the Agent, be rescheduled to be the later of February 1, 2002 or the
         90th day after the occurrence of such Event of Default; and (b) such
         other date on which the Commitments shall terminate pursuant to SECTION
         6 or SECTION 12.

         SECTION 3 WAIVERS. Subject to the satisfaction of the conditions
precedent set forth in SECTION 5(a), the Required Banks hereby waive (a) the
Company's non-compliance with

                                       9
<PAGE>

Sections 10.6.1, 10.6.2, 10.6.3, 10.23 and 10.24 of the Credit Agreement for all
periods ended on or prior to December 31, 2000 and (b) the Company's
non-compliance with Section 12.1.11(c) of the Credit Agreement resulting from
the resignation of W. Gregory Orr.

         SECTION 4 REPRESENTATIONS AND WARRANTIES. The Company represents and
warrants to the Administrative Agent and the Banks that, after giving effect to
the effectiveness hereof, (a) each warranty set forth in Section 9 (excluding
Section 9.14 with respect to Re-Claim Louisiana L.L.C. and Waste Research and
Recovery, Inc.) of the Credit Agreement is true and correct as of the date of
the execution and delivery of this Amendment by the Company, with the same
effect as if made on such date, and (b) no Event of Default or Unmatured Event
of Default exists.

         SECTION 5 EFFECTIVENESS. (a) The amendments set forth in SECTION 1
above shall become effective when the Administrative Agent shall have received
(i) counterparts of this Amendment executed by the Company and the Required
Banks, (ii) a Confirmation, substantially in the form of EXHIBIT A, signed by
the Company and each Subsidiary, and (iii) an amendment fee for each Bank which,
on or before March 16, 2001, executes and delivers to the Administrative Agent a
counterpart hereof agreeing to the amendments set forth in SECTION 1, such fee
to be in an amount equal to 0.25% of such Bank's Commitment after giving effect
to the amendment in SECTION 1.3(a).

         (b) The amendment set forth in SECTION 2 shall become effective when
the Administrative Agent shall have received (i) counterparts of this Amendment
executed by the Company and each Bank and (ii) an extension fee in the amount of
$300,000 (to be shared among the Banks pro rata according to their respective
Commitments after giving effect to the amendment in SECTION 1.3(a)).

         (c) Any Bank may, in its discretion, agree to the amendments set forth
in SECTION 1 but not the amendments (and extension) set forth in SECTION 2 by
delivering to the Administrative Agent, concurrently with its delivery of its
signature pages hereto, a notice in the form of ANNEX 1 hereto.

         SECTION 6 MISCELLANEOUS.

         6.1 CONTINUING EFFECTIVENESS, ETC. As herein amended, the Credit
Agreement shall remain in full force and effect and is hereby ratified and
confirmed in all respects. After the effectiveness of this Amendment, all
references in the Credit Agreement and the other Loan Documents to "Credit
Agreement" or similar terms shall refer to the Credit Agreement as amended
hereby.

         6.2 COUNTERPARTS. This Amendment may be executed in any number of
counterparts and by the different parties on separate counterparts, and each
such counterpart shall be deemed to be an original but all such counterparts
shall together constitute one and the same Amendment.

                                       10
<PAGE>

         6.3 GOVERNING LAW. This Amendment shall be a contract made under and
governed by the laws of the State of Illinois applicable to contracts made and
to be performed entirely within such state.

         6.4 SUCCESSORS AND ASSIGNS. This Amendment shall be binding upon the
Company, the Banks and the Administrative Agent and their respective successors
and assigns, and shall inure to the benefit of the Company, the Banks and the
Administrative Agent and the respective successors and assigns of the Banks and
the Administrative Agent.

         6.5 FACILITY FEE. The Company agrees to pay a facility fee to the
Administrative Agent in an amount equal to 0.25% of the Commitment Amount on the
applicable date (to be shared among the Banks pro rata according to their
respective Commitments) (i) on February 1, 2002 if the Company has not received
a commitment letter from a financial institution to refinance the Credit
Agreement on or prior to January 31, 2002 or (ii) on March 15, 2002 if (x) the
Loans have not been paid in full and the Commitments terminated on or prior to
such date and (y) no facility fee has previously been paid by the Company
pursuant to CLAUSE (i).

         6.6 CONSENT TO SALES. Notwithstanding any provision of Section 10.11 of
the Credit Agreement to the contrary, the Required Banks hereby agree that the
Company may sell all of the stock or all or a portion of the assets of any of
the Subsidiaries listed on SCHEDULE 10.9(d) and any Specified Property so long
as the Net Cash Proceeds from any such sale are at least equal to the net book
value of such Subsidiary or assets, as applicable.

                                       11
<PAGE>

         Delivered at Chicago, Illinois, as of the day and year first above
written.

                                       U S LIQUIDS INC.

                                       By
                                          -----------------------------------
                                       Title
                                             --------------------------------

                                       BANK OF AMERICA, N.A., as Administrative
                                       Agent

                                       By
                                          -----------------------------------
                                       Title
                                             --------------------------------

                                       BANK OF AMERICA, N.A., as a Bank

                                       By
                                          -----------------------------------
                                       Title
                                             --------------------------------

                                       FLEET NATIONAL BANK, as Syndication Agent
                                       and as a Bank

                                       By
                                          -----------------------------------
                                       Title
                                             --------------------------------

                                       BANK ONE TEXAS, N.A.

                                       By
                                          -----------------------------------
                                       Title
                                             --------------------------------

                                       S-1
<PAGE>

                                       THE BANK OF NOVA SCOTIA

                                       By
                                          -----------------------------------
                                       Title
                                             --------------------------------

                                       UNION BANK OF CALIFORNIA

                                       By
                                          -----------------------------------
                                       Title
                                             --------------------------------

                                       COMERICA BANK

                                       By
                                          -----------------------------------
                                       Title
                                             --------------------------------

                                       WELLS FARGO BANK, N.A.

                                       By
                                          -----------------------------------
                                       Title
                                             --------------------------------

                                       BNP PARIBAS

                                       By
                                          -----------------------------------
                                       Title
                                             --------------------------------

                                       By
                                          -----------------------------------
                                       Title
                                             --------------------------------

                                       S-2
<PAGE>

                                                                       EXHIBIT A

                                  CONFIRMATION

                           Dated as of March 16, 2001

To: Bank of America, N.A., individually and as Agent, and the other financial
    institutions party to the Credit Agreement referred to below

         Please refer to (a) the Second Amended and Restated Credit Agreement
dated as of February 3, 1999 (as amended, the "Credit Agreement") among U S
Liquids Inc., various financial institutions (the "Banks") and Bank of
America, N.A., as agent (the "Agent"); (b) the other "Loan Documents" (as
defined in the Credit Agreement), including the Guaranty and the Security
Agreement; and (c) the Fourth Amendment dated as of March 16, 2001 to the
Credit Agreement (the "Fourth Amendment").

         Each of the undersigned hereby confirms to the Agent and the Banks
that, after giving effect to the Fourth Amendment and the transactions
contemplated thereby, each Loan Document to which such undersigned is a party
continues in full force and effect and is the legal, valid and binding
obligation of such undersigned, enforceable against such undersigned in
accordance with its terms.

                      U S LIQUIDS INC.
                                              By:___________________________
                      Name Printed:_________________
                      Title:________________________

                      DOMBROWSKI & HOLMES, INC.
                      EARTH BLENDS, INC.
                      MBO, INC.
                      THE NATIONAL SOLVENT EXCHANGE CORP.
                      NORTHERN A-1 SANITATION SERVICES, INC.
                      PARALLEL PRODUCTS OF FLORIDA, INC.
                      PARALLEL PRODUCTS OF KENTUCKY, INC.
                      RE-CLAIM ENVIRONMENTAL LOUISIANA,      L.L.C.
                      ROMIC ENVIRONMENTAL TECHNOLOGIES
                         CORPORATION
                      STA DECANTING, INC.
                      USL FIRST SOURCE, INC.
                      U S LIQUIDS OF HOUSTON, L.L.C.
                      U S LIQUIDS OF DALLAS, L.L.C.
                      U S LIQUIDS OF CENTRAL TEXAS, L.L.C.
                      U S LIQUIDS OF CONNECTICUT, INC.

                                       A-1
<PAGE>

                      U S LIQUIDS OF ILLINOIS, INC.
                      U S LIQUIDS OF PENNSYLVANIA, INC.
                      U S LIQUIDS OF TEXAS, INC.
                      U S LIQUIDS LP HOLDING CO.
                      U S LIQUIDS NORTHEAST, INC.
                      U S LIQUIDS TERMINAL SERVICES, INC.
                      U S LIQUIDS OF DETROIT, INC.
                      U S LIQUIDS OF FLORIDA, INC.
                      USL ENVIRONMENTAL SERVICES, INC.
                      USL GENERAL MANAGEMENT, INC.
                      USL PARALLEL PRODUCTS OF CALIFORNIA
                      WASTE RESEARCH AND RECOVERY, INC.
                      WASTE STREAM ENVIRONMENTAL, INC.

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

                      U S LIQUIDS OF LA, L.P.

                      By:  MBO, Inc., its General Partner

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

                      USL MANAGEMENT LIMITED
                      PARTNERSHIP

                      By:  USL General Management, Inc., its General Partner

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

                      GEM MANAGEMENT, INC.

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

<PAGE>

                                  SCHEDULE 1.1

                                PRICING SCHEDULE

         The Floating Rate Margin, the Eurodollar Margin, the rate per annum for
non-use fees and the rate per annum for letter of credit fees for Financial
Letters of Credit and Non-Financial Letters of Credit, respectively, shall be
determined in accordance with the table below and the other provisions of this
SCHEDULE 1.1.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
                                 Level I         Level II         Level III         Level IV          Level V
--------------------------------------------------------------------------------------------------------------
<S>                            <C>            <C>               <C>              <C>               <C>
Rate for
Non-Use Fee                      0.550%           0.500%            0.450%           0.400%           0.350%
--------------------------------------------------------------------------------------------------------------
Eurodollar Margin                3.750%           3.500%            3.250%           3.000%           2.750%
--------------------------------------------------------------------------------------------------------------
Floating Rate
Margin                           2.250%           2.000%            1.750%           1.500%           1.250%
--------------------------------------------------------------------------------------------------------------
Rate for
Non-Financial LC                 2.250%           2.125%            2.000%           1.875%           1.750%
Fee
--------------------------------------------------------------------------------------------------------------
Rate for
Financial LC Fee                 3.750%           3.500%            3.250%           3.000%           2.750%
--------------------------------------------------------------------------------------------------------------
</TABLE>

         LEVEL I applies when the ratio of Funded Debt to Adjusted EBITDA is
equal to or greater than 4.00 to 1.0.

         LEVEL II applies when the ratio of Funded Debt to Adjusted EBITDA is
equal to or greater than 3.50 to 1.0 but less than 4.00 to 1.0.

         LEVEL III applies when the ratio of Funded Debt to Adjusted EBITDA is
equal to or greater than 3.00 to 1.0 but less than 3.50 to 1.0.

         LEVEL IV applies when the ratio of Funded Debt to Adjusted EBITDA is
equal to or greater than 2.50 to 1.0 but less than 3.00 to 1.0.

         LEVEL V applies when the ratio of Funded Debt to Adjusted EBITDA is
less than 2.50 to 1.0.

         The applicable Level shall be Level I during the period from the date
of the effectiveness of the Fourth Amendment to this Agreement through the first
date on which the applicable Level is adjusted pursuant to the following
sentence. Subject to the foregoing provisions of this SCHEDULE 1.1, the
applicable Level shall be adjusted, to the extent applicable, 45 days (or, in
the

<PAGE>

case of the last Fiscal Quarter of any Fiscal Year, 90 days) after the end of
each Fiscal Quarter based on the Funded Debt to Adjusted EBITDA Ratio as of
the last day of such Fiscal Quarter; PROVIDED that if the Company fails to
deliver the financial statements required by SECTION 10.1.1 or 10.1.2, as
applicable, and the related certificate required by SECTION 10.1.3 by the
45th day (or, if applicable, the 90th day) after any Fiscal Quarter, Level I
shall apply until such financial statements are delivered.

<PAGE>

                                 SCHEDULE 9.6(a)

                      LITIGATION AND CONTINGENT LIABILITIES

                  REDACTED - CONFIDENTIAL TREATMENT REQUESTED.

<PAGE>

                                 SCHEDULE 9.6(b)

                  REDACTED - CONFIDENTIAL TREATMENT REQUESTED.

<PAGE>

                                  SCHEDULE 9.8
                                  SUBSIDIARIES

Dombrowski & Holmes, Inc.
Earth Blends, Inc.
MBO, Inc.
The National Solvent Exchange Corp.
Northern A-1 Sanitation Services, Inc.
Parallel Products of Florida, Inc.
Parallel Products of Kentucky, Inc.
Re-Claim Environmental Louisiana, L.L.C.
Romic Environmental Technologies Corporation
STA Decanting, Inc.
U S Liquids of Houston, L.L.C.
U S Liquids of Dallas, L.L.C.
U S Liquids of Central Texas, L.L.C.
U S Liquids of Connecticut, Inc.
U S Liquids of Illinois, Inc.
U S Liquids of Pennsylvania, Inc.
U S Liquids of Texas, Inc.
U S Liquids LP Holding Co.
U S Liquids Northeast, Inc.
U S Liquids Terminal Services, Inc.
U S Liquids of Detroit, Inc.
U S Liquids of Florida, Inc.
USL Environmental Services, Inc.
USL First Source, Inc.
USL General Management, Inc.
USL Parallel Products of California
Waste Research and Recovery, Inc.
Waste Stream Environmental, Inc.
U S Liquids of LA, L.P.
USL Management Limited Partnership
GEM Management, Inc.

<PAGE>

                                  SCHEDULE 9.15
                              ENVIRONMENTAL MATTERS

                  REDACTED - CONFIDENTIAL TREATMENT REQUESTED.

<PAGE>

                                Schedule 10.9(d)

                              ASSETS HELD FOR SALE

                  REDACTED - CONFIDENTIAL TREATMENT REQUESTED.

<PAGE>

                                 SCHEDULE 10.26

                    PROJECTED EBITDA FOR VARIOUS SUBSIDIARIES

                  REDACTED - CONFIDENTIAL TREATMENT REQUESTED.

<PAGE>
                                                                       EXHIBIT B

                                U S LIQUIDS INC.
                        FINANCIAL COMPLIANCE CERTIFICATE
             FOR PERIOD ENDED _____________ (the "COMPUTATION DATE")

To:   Bank of America, N.A., as Agent

         Reference is made to Section 10.1.3 of the Second Amended and Restated
Credit Agreement dated as of February 3, 1999 (as amended or otherwise modified
from time to time, the "CREDIT AGREEMENT") among U S Liquids Inc. (the
"COMPANY"), various financial institutions and Bank of America, N.A. (formerly
known as Bank of America National Trust and Savings Association), as Agent for
the Banks. Capitalized terms used but not otherwise defined herein are used as
defined in the Credit Agreement.

         The Company hereby certifies and warrants to you that the computations
of the various financial ratios and restrictions set forth in Section 10 of the
Credit Agreement are as set forth on Schedule A.

         The Company further certifies to you that no Event of Default or
Unmatured Event of Default has occurred and is continuing.

         IN WITNESS WHEREOF, the Company has caused this Certificate to be
executed and delivered by its duly authorized officer this ____ day of
_________, ____.

                                         U S LIQUIDS INC.

                                         By_________________________
                                         Title______________________

<PAGE>

                                   Schedule A
                        Financial Ratios and Restrictions

<TABLE>
<S>                                                             <C>                      <C>
VII.    MINIMUM NET WORTH (Section 10.6.1)

A.    Initial Minimum Net Worth:                                 $148,400,000
B.    75% of the sum of Consolidated Net Income
      for each Fiscal Quarter (which shall not be
      less than zero) from and after December 31,
      2000 to the Computation Date                               $__________
C.    100% of net proceeds of any equity issued by
      the Company or any of its Subsidiaries after
      December 31, 2000                                          $__________
D.    Actual Net Worth                                                                     $_____________
E.    Minimum Required Net Worth (IA+ IB+IC)                                               $_____________

II.   MINIMUM INTEREST COVERAGE (Section 10.6.2)

A.    Consolidated Net Income                                    $__________
B.    Interest Expense                                           $__________
C.    Income tax expense                                         $__________
D.    Depreciation and Amortization                              $__________
E.    EBITDA (IIA+IIB+IIC+IID)                                   $__________
F.    Fourth Quarter Special Charges                             $__________
G.    Detroit Facility Reserve Charges                           $__________
H.    Non-cash income resulting from Waste
      Management Settlement Agreement                            $__________
I.    Adjusted EBITDA (IIE+IIF+IIG-IIH)                                                    $__________
J.    Cash Interest Expense                                                                $__________
K.    Interest Coverage Ratio (III/IIJ)                                                    ____ to 1.0

<PAGE>

Minimum Required:

COMPUTATION PERIOD ENDING
12/31/00 through 6/30/01                                                                   2.25 to 1.0
7/1/01 through 9/30/01                                                                     2.50 to 1.0
10/1/01 and thereafter                                                                     3.00 to 1.0

III.  FUNDED DEBT TO ADJUSTED EBITDA RATIO (Section 10.6.3)

A.    Funded Debt                                                                          $__________
B.    Adjusted EBITDA (III above)                                                          $__________
C.    Funded Debt to Adjusted EBITDA Ratio                                                 ____ to 1.0
      (IIIA/IIIB)

Maximum Allowed:

PERIOD ENDING
12/31/00 through 6/29/01                                                                   4.50 to 1.0
6/30/01 through 9/29/01                                                                    4.25 to 1.0
9/30/01 through 12/30/01                                                                   3.75 to 1.0
12/31/01 and thereafter                                                                    3.00 to 1.0

IV. CAPITAL EXPENDITURES (Section 10.6.4)

A.    Aggregate Capital Expenditures made since
      the first day of current Fiscal Year (maximum              $___________
      $10,000,000 in any Fiscal Year)
B.    Aggregate Capital Expenditures made during
      the first two Fiscal Quarters of current Fiscal
      Year (maximum $6,000,000 in the first two                  $____________
      Fiscal Quarters of any Fiscal Year)

V.    DEBT (Section 10.7)

A.    Unsecured Debt of Company (maximum
      $5,000,000 in aggregate principal amount at
      any time)                                                  $____________
B.    Debt secured by Liens permitted by Sections
      10.8(c) or (d) (maximum $5,000,000 in
      aggregate principal amount at any time)                    $____________

<PAGE>

C.    Contingent Payments (maximum
      $10,000,000 at any time)

VI.   OPERATING LEASES (Section 10.9)

Aggregate amount of all rental payments made by Company and Subsidiaries on
Operating Leases with a term greater than three months (maximum $6,000,000 on a
consolidated basis in any Fiscal
Year)                                                            $____________

VII.  INVESTMENTS (Section 10.21)

A.    Loans to officers and employees (not to                    [Describe]
      exceed $200,000 per loan or $500,000 in the
      aggregate)
B.    Aggregate amount of Investments described
      in Section 10.21(j)                                        $___________

VIII. PROPERTY AT ETHANOL PLANT SITE (Section 10.23)

Net book value of property of the Company and its
Subsidiaries located at the Ethanol Plant Site (not
to exceed $1,500,000)                                            $___________

IX.   PROPERTY OWNED BY PARALLEL PRODUCTS OF FLORIDA (Section 10.24)

Net book value of property owned by Parallel
Products of Florida, Inc. (not to exceed
$1,500,000)                                                      $___________
</TABLE>

<PAGE>

                                     ANNEX I

                                     NOTICE

To:  Bank of America, N.A.

         Please refer to the Fourth Amendment dated as of March 16, 2001 (the
"Fourth Amendment") to the Second Amended and Restated Credit Agreement dated
as of February 3, 1999 among U S Liquids Inc., various financial institutions
and Bank of America, N.A., as Agent. Terms defined in the Fourth Amendment
are used herein as defined therein.

         Concurrently herewith, the undersigned is delivering to the Agent a
counterpart signature page to the Fourth Amendment. The undersigned hereby
notifies the Agent and the Company that such counterpart signature page is
being delivered subject to the qualification that the undersigned has not
agreed to Section 2 of the Fourth Amendment or to the extension of the
Termination Date referred to therein.

                                   ------------------------------------------
                                   [Type or print name of Bank]

                                   By:_______________________________________
                                   Title: ___________________________________

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