EIGHTH MODIFICATION OF LOAN DOCUMENTS AND COVENANT WAIVER
 DATED AS OF AUGUST 6, 2008
 by and among
 Lawson Products, Inc., a Delaware Corporation
 AND
 BANK OF AMERICA, NATIONAL ASSOCIATION AS SUCCESSOR IN INTEREST
TO LASALLE BANK NATIONAL ASSOCIATION




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EIGHTH MODIFICATION OF LOAN DOCUMENTS AND COVENANT WAIVER
 THIS EIGHTH MODIFICATION OF LOAN DOCUMENTS AND COVENANT WAIVER Modification TH Lawson Schedule 6.12 Borrower BANK OF AMERICA, NATIONAL ASSOCIATION Lender
 R E C I T A L S:
 Loan Credit Agreement Note
 ACSL
 Federal
Settlement Federal
Settlement Amount




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AGREEMENTS
 NOW, THEREFORE
 Waiver of Events of Default and Defaults
 Acknowledgment of Events of Default Existing Default
 Acknowledgment of Obligations and Borrower Liability Thereon
 Acknowledgment that Obligations Continue in Full Force and Effect
 2




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Waiver of Default
 Release
 Modification to the calculation of certain financial covenants for a limited
period
 Representations and Warranties of Borrower
   3




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Conditions Precedent
      Miscellaneous
  4




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Customer Identification  USA Patriot Act Notice
  6




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IN WITNESS WHEREOF
 LASALLE BANK NATIONAL
 ASSOCIATION (as Lender)By:
    
    /s/ David BaconName:
    
    David BaconIts:
    
    Vice PresidentLAWSON PRODUCTS, INC., a Delaware Corporation (as Borrower)By:
    
    /s/ Thomas NeriThomas NeriIts:
    
    Chief Executive OfficerLAWSON PRODUCTS, INC., a Georgia Corporation (as Borrower)By:
    
    /s/ Thomas NeriThomas NeriIts:
    
    Chief Executive OfficerLAWSON PRODUCTS, INC., a New Jersey Corporation (as Borrower)By:
    
    /s/ Thomas NeriThomas NeriIts:
    
    Chief Executive OfficerLAWSON PRODUCTS, INC., a Nevada Corporation (as Borrower)By:
    
    /s/ Thomas NeriIts:
    
    Thomas Neri
Chief Executive OfficerLAWSON PRODUCTS, INC., a Texas corporation (as Borrower)By:
    
    /s/ Thomas NeriThomas NeriIts:
    
    Chief Executive OfficerLAWSON PRODUCTS, INC., a Canadian Corporation (as Borrower)By:
    
    /s/ Thomas NeriThomas NeriIts:
    
    Chief Executive OfficerLP SERVICE CO., an Illinois Corporation (as Borrower)By:
    
    /s/ Thomas NeriThomas NeriIts:
    
    Chief Executive OfficerLPI HOLDINGS, INC., an Illinois Corporation (as Borrower)By:
    
    /s/ Thomas NeriThomas NeriIts:
    
    Chief Executive OfficerCRONATRON WELDING SYSTEMS, INC., a North Carolina Corporation (as Borrower)By:
    
    /s/ Thomas NeriThomas NeriIts:
    
    Chief Executive Officer




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DRUMMOND AMERICAN Corporation, an Illinois Corporation (as Borrower)By:
    
    /s/ Thomas Neri

Thomas NeriIts:
    
    Chief Executive OfficerASSEMBLY COMPONENT SYSTEMS, INC., an Illinois Corporation (as Borrower)By:
    
    /s/ Thomas NeriThomas NeriIts:
    
    Chief Executive OfficerAUTOMATIC SCREW MACHINE PRODUCTS COMPANY, INC., an Alabama Corporation (as Borrower)By:
    
    /s/ Thomas NeriThomas NeriIts:
    
    Chief Executive OfficerC.B. LYNN COMPANY, an Illinois Corporation (as Borrower)By:
    
    /s/ Thomas NeriThomas NeriIts:
    
    Chief Executive OfficerLP INDUSTRIAL PRODUCTS COMPANY, an Illinois Corporation (as Borrower)By:
    
    /s/ Thomas NeriThomas NeriIts:
    
    Chief Executive OfficerLAWSON PRODUCTS DE MEXICO, S.A. DE C.V. (as Borrower)By:
    
    /s/ Thomas NeriThomas NeriIts:
    
    Chief Executive Officer