Document:

<PAGE>

                                                                     EXHIBIT 4.2

                                                                  CONFORMED COPY

                  GUARANTEE AGREEMENT dated as of November 14, 2002, as amended
            and restated as of December 15, 2004 (this "Agreement"), among
            ABERCROMBIE & FITCH CO., a Delaware corporation ("Parent"), each
            direct and indirect Subsidiary of Parent other than Abercrombie &
            Fitch Management Co. (each a "Domestic Subsidiary" and, together
            with Parent and any other Subsidiaries that become parties hereto as
            contemplated by Section 15 hereof, referred to herein individually
            as a "Guarantor" and collectively as the "Guarantors"), and NATIONAL
            CITY BANK, as administrative agent (the "Agent") for the lenders
            (the "Lenders") party to the Credit Agreement dated as of November
            14, 2002, as amended and restated as of December 15, 2004 (as
            amended, supplemented or otherwise modified from time to time, the
            "Credit Agreement"), among Abercrombie & Fitch Management Co. (the
            "Borrower"), Parent, the Lenders party thereto and the Agent.

         The Borrower, the Parent, the Lenders and the Agent are parties to the
Original Credit Agreement (such term and each other capitalized term used but
not defined herein having the meaning assigned to it in Article I of the Credit
Agreement). Such parties have amended and restated the Original Credit Agreement
in the form of the Credit Agreement, effective as of the Restatement Effective
Date and subject to satisfaction of the conditions set forth therein.

         The Lenders have agreed to make loans to Borrower in accordance with
the terms of the Credit Agreement. The obligations of the Lenders to lend under
the Credit Agreement are conditioned on, among other things, the execution and
delivery by the Guarantors of a guarantee agreement in the form hereof. The
Guarantors acknowledge that they will derive substantial benefits from the
extension of credit to Borrower under the Credit Agreement. As consideration
therefor and in order to induce the Lenders to make the Loans (such term and the
other capitalized terms used herein and not otherwise defined herein having the
meanings assigned to them in the Credit Agreement), the Guarantors are willing
to execute and deliver this Agreement. Accordingly, the parties hereto agree as
follows:

         SECTION 1. Each of the Guarantors unconditionally guarantees, jointly
with the other Guarantors and severally, as a primary obligor and not merely as
a surety, (a) the due and punctual payment by the Borrower of (i) the principal
of and interest on the Loans, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment or otherwise and (ii)
all other monetary obligations of the Borrower to the Lenders and the Agent
under the Credit Agreement and the other Loan Documents to which the Borrower is
or is to be a party and (b) the due and punctual performance of all

<PAGE>

other obligations of the Borrower under the Credit Agreement and the other Loan
Documents (all the foregoing obligations being collectively called the
"Obligations"). Each of the Guarantors further agrees that the Obligations may
be extended or renewed, in whole or in part, without notice to or further assent
from it, and that it will remain bound upon its guarantee notwithstanding any
extension or renewal of any Obligation.

         SECTION 2. Each of the Guarantors waives presentment to, demand of
payment from and protest to the Borrower of any of the Obligations, and also
waives notice of acceptance of its guarantee and notice of protest for
nonpayment. The obligations of each Guarantor hereunder shall not be affected by
(a) the failure of the Agent or any Lender to assert any claim or demand or to
enforce any right or remedy against the Borrower under the provisions of any
Loan Document or otherwise; (b) any rescission, waiver, amendment or
modification of, or any release from any of the terms or provisions of, any Loan
Document, any guarantee or any other agreement, including with respect to any
other Guarantor under this Agreement; (c) the release of any security held by
the Agent or any Lender for the Obligations or any of them; or (d) the failure
of the Agent or any Lender to exercise any right or remedy against any other
Guarantor or guarantor of the Obligations.

         SECTION 3. Each of the Guarantors further agrees that its guarantee
hereunder constitutes a guarantee of payment when due and not of collection, and
waives any right to require that resort be had by the Agent or any Lender to any
security held for payment of the Obligations or to any balance of any deposit
account or credit on the books of the Agent or any Lender in favor of the
Borrower or any other person.

         SECTION 4. The obligations of each Guarantor hereunder shall not be
subject to any reduction, limitation, impairment or termination for any reason,
including, without limitation, any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to any defense or setoff,
counterclaim, recoupment or termination whatsoever by reason of the invalidity,
illegality or unenforceability of the Obligations or otherwise. Without limiting
the generality of the foregoing, the obligations of each Guarantor hereunder
shall not be discharged or impaired or otherwise affected by the failure of the
Agent or any Lender to assert any claim or demand or to enforce any remedy under
any Loan Document, any guarantee or any other agreement, by any waiver or
modification of any thereof, by any default, failure or delay, willful or
otherwise, in the performance of the Obligations, or by any other act or
omission which may or might in any manner or to any extent vary the risk of any
Guarantor or otherwise operate as a discharge of the Borrower or any Guarantor
as a matter of law or equity (other than the indefeasible payment in full of all
the Obligations).

         SECTION 5. Each of the Guarantors further agrees that its guarantee
shall continue to be effective or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any Obligation is rescinded or must
otherwise be restored by the Agent or any Lender upon the bankruptcy or
reorganization of the Borrower, any other Guarantor or otherwise.

                                        2
<PAGE>

         SECTION 6. In furtherance of the foregoing and not in limitation of any
other right which the Agent or any Lender has at law or in equity against any
Guarantor by virtue hereof, upon the failure of the Borrower to pay any
Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, each of the Guarantors
hereby promises to and will, upon receipt of written demand by the Agent,
forthwith pay, or cause to be paid, to the Agent for distribution to the
Lenders, if and as appropriate, in cash the amount of such unpaid Obligation.
Notwithstanding any payment or payments made by a Guarantor hereunder or any
setoff or application of funds of a Guarantor by the Agent or any Lender, no
Guarantor shall be entitled to be subrogated to any of the rights of the Agent
or any Lender against the Borrower or any collateral security or guarantee or
right of offset held for the payment of the Obligations, nor shall any Guarantor
seek or be entitled to seek any contribution or reimbursement from the Borrower
in respect of payments made by such Guarantor hereunder, until all amounts owing
to the Agent or any Lender by the Borrower on account of the Obligations are
paid in full and the Commitments are terminated. If any amount shall erroneously
be paid to any Guarantor on account of such subrogation, contribution,
reimbursement, indemnity and similar rights, such amount shall be held in trust
for the benefit of the Lenders and shall forthwith be paid to the Agent to be
credited and applied to the payment of the Obligations. Any term or provision of
this Agreement to the contrary notwithstanding, the maximum aggregate amount of
the Obligations guaranteed hereunder by any Guarantor shall not exceed the
maximum amount that can be hereby guaranteed by that Guarantor without rendering
this Agreement, as it relates to such Guarantor, voidable under applicable law
relating to fraudulent conveyance or fraudulent transfer or similar laws
affecting the rights of creditors generally.

         SECTION 7. Each of the Guarantors represents and warrants that (a) it
is a corporation duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization, (b) the execution, delivery and
performance by it of this Agreement are within its corporate powers, have been
duly authorized by all necessary corporate and (if necessary) stockholder
action, and do not contravene, or constitute a default under, any provision of
applicable law or regulation or of its certificate of incorporation or By-Laws
or any material agreement or instrument binding upon it, and (c) this Agreement
constitutes a valid and binding agreement of such Guarantor, enforceable in
accordance with its terms, subject to the effect of applicable bankruptcy,
insolvency or similar laws affecting creditors' rights generally and equitable
principles of general applicability.

         SECTION 8. The guarantees made hereunder shall survive and be in full
force and effect so long as any Obligation is outstanding and has not been
indefeasibly paid, and shall be reinstated to the extent provided in Section 5.

         SECTION 9. This Agreement and the terms, covenants and conditions
hereof shall be binding upon each Guarantor and its successors and shall inure
to the benefit of the Agent and the Lenders and their respective successors and
assigns. None of the Guarantors shall be permitted to assign or transfer any of
its rights or obligations under this Agreement, except as expressly contemplated
by this Agreement.

                                        3
<PAGE>

         SECTION 10. No failure on the part of the Agent to exercise, and no
delay in exercising, any right, power or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right,
power or remedy by the Agent or any Lender preclude any other or further
exercise thereof or the exercise of any other right, power or remedy. All
remedies hereunder and under the other Loan Documents are cumulative and are not
exclusive of any other remedies provided by law. Except as provided in the
Credit Agreement, none of the Agent or the Lenders shall be deemed to have
waived any rights hereunder or under any other agreement or instrument unless
such waiver shall be in writing and signed by such parties.

         SECTION 11. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF OHIO.

         SECTION 12. All communications and notices hereunder shall be in
writing and given as provided in Section 9.01 of the Credit Agreement; provided
that any communication or notice hereunder to any Guarantor shall be given to it
in care of the Borrower at the address or telecopy or telex number specified in
the Credit Agreement.

         SECTION 13. In case any one or more of the provisions contained in this
Agreement should be held invalid, illegal or unenforceable in any respect with
respect to any Guarantor, no party hereto shall be required to comply with such
provision with respect to such Guarantor for so long as such provision is held
to be invalid, illegal or unenforceable and the validity, legality and
enforceability of the remaining provisions contained herein, and of such
provision with respect to any other Guarantor, shall not in any way be affected
or impaired. The parties shall endeavor in good-faith negotiations to replace
any invalid, illegal or unenforceable provisions with valid provisions, the
economic effect of which come as close as possible to that of the invalid,
illegal or unenforceable provisions.

         SECTION 14. This Guarantee may be released with respect to any
Subsidiary that ceases to be a Domestic Subsidiary as a result of a transaction
that is permitted by the terms of the Credit Agreement.

         SECTION 15. This Agreement may be executed in two or more counterparts,
each of which shall constitute an original, but all of which, when taken
together, shall constitute but one instrument; provided that this Agreement
shall be construed as a separate agreement with respect to each Guarantor and
may be amended, modified, supplemented, waived or released with respect to any
Guarantor without the approval of any other Guarantor and without affecting the
obligations of any other Guarantor hereunder. This Agreement shall be effective
with respect to any Guarantor when a counterpart which bears the signature of
such Guarantor shall have been delivered to the Agent.

         SECTION 16. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION DIRECTLY OR

                                       4
<PAGE>

INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

         SECTION 17. Upon execution and delivery by the Agent and any
subsequently acquired or organized Domestic Subsidiary of an instrument in the
form of Annex 1 attached hereto, such subsequently acquired or organized
Domestic Subsidiary shall become a Guarantor hereunder with the same force and
effect as if originally named as a Guarantor herein. The execution and delivery
of any such instrument shall not require the consent of any Guarantor hereunder.
The rights and obligations of each Guarantor hereunder shall remain in full
force and effect notwithstanding the addition of any new Guarantor as a party to
this Agreement.

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

                                       ABERCROMBIE & FITCH CO.

                                            by
                                                /s/ Susan J. Riley
                                                --------------------------------
                                                Name: Susan J. Riley
                                                Title: Senior Vice President and
                                                Chief Financial Officer

                                       ABERCROMBIE & FITCH HOLDING CORPORATION

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President

                                       A&F TRADEMARK, INC.

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President

                                       5
<PAGE>

                                       ABERCROMBIE & FITCH FULFILLMENT COMPANY

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President

                                       ABERCROMBIE & FITCH DISTRIBUTION COMPANY

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President

                                       J.M.H. TRADEMARK, INC.

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President

                                       J.M. HOLLISTER, LLC

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President - Finance
                                                of Abercrombie & Fitch Stores,
                                                Inc. in its capacity as Sole
                                                Manager

                                       ABERCROMBIE & FITCH TRADING CO.

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President - Finance

                                       6
<PAGE>

                                       ABERCROMBIE & FITCH STORES, INC.

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President

                                       ABERCROMBIE & FITCH PROCUREMENT SERVICES,
                                       LLC

                                       by

                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President - Finance
                                                of Abercrombie & Fitch Trading
                                                Co. in its capacity as Sole
                                                Member

                                       FAN COMPANY, LLC

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President - Finance
                                                of Abercrombie & Fitch
                                                Management Co. in its capacity
                                                as Sole Member

                                       A&F 2001, INC.

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President

                                       FITCH 2001, INC.

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President

                                       7
<PAGE>

                                       A&F WEST COAST HOLDING, INC.

                                       by
                                                /s/ Sheri Gillery
                                                --------------------------------
                                                Name: Sheri Gillery
                                                Title: President

                                       A&F MICHIGAN, INC.

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President

                                       HOLLISTER MICHIGAN, LLC

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President of
                                                A&F Michigan, Inc. in its
                                                capacity as Sole Member

                                       HOLLISTER OHIO, LLC

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President of A&F
                                                Ohio, Inc. in its capacity as
                                                Sole Member

                                       HOLLISTER CALIFORNIA, LLC

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Manager

                                       A&F CALIFORNIA, LLC

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Manager

                                       8
<PAGE>

                                       A&F OHIO, INC.

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President

                                       CANOE, LLC

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President - Finance
                                                of Abercrombie & Fitch
                                                Management Co. in its capacity
                                                as Sole Member

                                       CROMBIE, LLC

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President - Finance
                                                of Abercrombie Co. in its
                                                capacity as Sole Member

                                       RUEHL NO. 925, LLC

                                       by
                                                /s/ Peter A. Hutt
                                                --------------------------------
                                                Name: Peter A. Hutt
                                                Title: Vice President - Finance
                                                of Abercrombie & Fitch Stores,
                                                Inc. in its capacity as Sole
                                                Member

                                       NATIONAL CITY BANK,
                                       as Agent

                                       by
                                                /s/ Ralph A. Kaparos
                                                --------------------------------
                                                Name: Ralph A. Kaparos
                                                Title: Senior Vice President

                                       9
<PAGE>

                                                                  ANNEX 1 to the
                                                             Guarantee Agreement

                  SUPPLEMENT NO. dated as of    , [ ] to the GUARANTEE AGREEMENT
            dated as of November 14, 2002, as amended and restated as of
            December 15, 2004 (the "Guarantee Agreement"), among ABERCROMBIE &
            FITCH CO., a Delaware corporation ("Parent"), and each direct and
            indirect Subsidiary of Parent other than Abercrombie & Fitch
            Management Co. (each a "Domestic Subsidiary" and, together with
            Parent and any other Subsidiaries that become parties thereto as
            contemplated by Section 15 thereof, referred to herein individually
            as a "Guarantor" and collectively as the "Guarantors"), and NATIONAL
            CITY BANK, as administrative agent (the "Agent") for the Lenders
            (the "Lenders") party to the Credit Agreement dated as of November
            14, 2002, as amended and restated as of December 15, 2004 (as
            amended from time to time, the "Credit Agreement"), among
            Abercrombie & Fitch Management Co. (the "Borrower"), Parent, the
            Lenders party thereto and the Agent.

         The Guarantors have entered into the Guarantee Agreement in order to
induce the Lenders to make Loans to the Borrower (such term and other
capitalized terms used herein and not otherwise defined herein having the
meanings assigned to such terms in the Guarantee Agreement and the Credit
Agreement). Section 15 of the Guarantee Agreement provides that additional
Domestic Subsidiaries may become Guarantors under the Guarantee Agreement by
execution and delivery of an instrument in the form of this Supplement. The
undersigned Domestic Subsidiary (the "New Guarantor") is executing this
Supplement to become a Guarantor under the Guarantee Agreement. As a Subsidiary,
the New Guarantor acknowledges that it derives substantial benefits from the
extension of credit to the Borrower under the Credit Agreement.

         Accordingly, the Agent and the New Guarantor agree as follows:

         SECTION 1. In accordance with Section 17 of the Guarantee Agreement,
the New Guarantor by its signature below becomes a Guarantor under the Guarantee
Agreement with the same force and effect as if originally named therein as a
Guarantor and the New Guarantor hereby agrees to all the terms and provisions of
the Guarantee Agreement applicable to it as a Guarantor thereunder. Each
reference to a "Guarantor" in the Guarantee Agreement shall be deemed to include
the New Guarantor. The Guarantee Agreement is hereby incorporated herein by
reference.

         SECTION 2. The New Guarantor represents and warrants that this
Supplement has been duly authorized, executed and delivered by it and
constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms, subject to applicable bankruptcy, insolvency and
similar laws affecting creditors' rights generally and equitable principles of
general applicability.

<PAGE>

         SECTION 3. This Supplement may be executed in counterparts, each of
which shall constitute an original, but all of which when taken together shall
constitute a single contract. This Supplement shall become effective when the
Agent shall have received a counterpart of this Supplement that bears the
signature of the New Guarantor.

         SECTION 4. Except as expressly supplemented hereby, the Guarantee
Agreement shall remain in full force and effect.

         SECTION 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF OHIO.

         SECTION 6. In case any one or more of the provisions contained in this
Supplement should be held invalid, illegal or unenforceable in any respect, no
party hereto shall be required to comply with such provision for so long as such
provision is held to be invalid, illegal or unenforceable and the validity,
legality and enforceability of the remaining provisions contained herein and in
the Guarantee Agreement, and of any such provision with respect to any other
Guarantor, shall not in any way be affected or impaired. The parties shall
endeavor in good-faith negotiations to replace any invalid, illegal or
unenforceable provisions with valid provisions, the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

         SECTION 7. All communications and notices hereunder shall be in writing
and given as provided in Section 12 of the Guarantee Agreement. All
communications and notices hereunder to the New Guarantor shall be given to it
at the address set forth under its signature below.

         SECTION 8. The New Guarantor agrees to reimburse the Agent for its
out-of-pocket expenses in connection with this Supplement, including the fees,
disbursements and other charges of counsel for the Agent.

         IN WITNESS WHEREOF, the New Guarantor and the Agent have duly executed
this Supplement to the Guarantee Agreement as of the day and year first above
written.

                                             [NAME OF NEW GUARANTOR],

                                               by: ____________________________
                                                   Name:
                                                   Title:
                                                [Address]

                                             NATIONAL CITY BANK, as Agent,

                                               by: ____________________________
                                                   Name:
                                                   Title:

                                        2<PAGE>

                                                                   EXHIBIT 10.27

================================================================================

                            REVITALIZATION AGREEMENT

                                    BETWEEN

                SOUTH CAROLINA ADVISORY COORDINATING COUNCIL FOR
                              ECONOMIC DEVELOPMENT

                        FOR THE STATE OF SOUTH CAROLINA

                                      AND

                            Safe Auto Insurance Co.

                              WILLIAMSBURG COUNTY

                           APPLICATION #: EZ 03451765

                    DATED EFFECTIVE AS OF:                      NOVEMBER 6, 2003
                                                                ----------------

                                                                r. 01/07/03

================================================================================

                                    RECEIVED
                                  JUL 19 2004

                           S. C. Coordinating Council
                            For Economic Development
<PAGE>

                            REVITALIZATION AGREEMENT

      This REVITALIZATION AGREEMENT is made as of the date specified on the
cover hereof between the Advisory Coordinating Council for Economic Development
for the State of South Carolina, and the company specified on the cover hereof.

      WHEREAS, the South Carolina General Assembly has determined that the
economic well-being of the citizens of the State of South Carolina will be
enhanced by the increased development and growth of industry within the State,
and that it is in the best interest of the State to induce the location or
expansion of certain businesses and facilities within the State in order to
promote the public purpose of creating new jobs within the State; and

      WHEREAS, the Code authorizes and directs the Council to enter into
agreements, such as this Agreement, in order to encourage the creation of jobs
which would not otherwise exist; and

      WHEREAS, based, among other things, upon the willingness of the Council to
enter into this Agreement, the Company has determined to locate a project within
this State; and

      WHEREAS, the Council has determined, by resolution that the Company is a
"qualifying business" within the meaning of the Code, and that the total
benefits of the Project to the public exceed the costs of the Project to the
public, and that it is appropriate to enter into this Agreement;

      NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree to the following terms and conditions:

                             ARTICLE I. DEFINITIONS

"Agreement" means this Revitalization Agreement effective as of the date
specified on the cover between the Council and the Company.

"Authorized Company Representative" means any officer or employee of the Company
duly appointed by the Company with responsibility for matters pertaining to this
agreement.

"Code" means the Code of Laws of South Carolina, as applicable to this
agreement.

"Company" means the company specified on the cover hereof which is organized
and existing in the business form specified in Exhibit A under the laws of the
state specified in Exhibit A, and its permitted successors and assigns as
specified under Section 3.4 of this Agreement.

"Council" means the Advisory Coordinating Council for Economic Development and
its successors.

"Cut-off Date" means the fifth anniversary of the effective date of this
Agreement.

"Department" means the South Carolina Department of Revenue and its successors.

"Eligible Project Costs" means those items of cost set forth in Exhibit A for
which Job Development Credits are allowed to be used by Section 12-10-80(C) of
the South Carolina Code of Laws, which consist of one or more of the following:
(1) training costs and facilities; (2) acquiring and improving real estate
whether constructed or acquired by purchase, installment payment, or in cases as
approved by the Council acquired by lease or otherwise;

--------------------------------------------------------------------------------
SC ENTERPRISE PROGRAM           REVITALIZATION AGREEMENT                      2

<PAGE>

(3) improvements to both public and private utility systems including water,
sewer, electricity, natural gas and telecommunications; (4) fixed transportation
facilities including highway, rail, water and air; and (5) construction or
improvements of any real property and fixtures constructed or improved primarily
for the purpose of complying with local, state or federal environmental laws or
regulations. The Company may claim Job Development Credits if a) the
expenditures, to which the Job Development Credits relate, are incurred during
the term of the Agreement or within 60 days before the execution of the
Agreement, including a preliminary Agreement; b) such expenditures are
authorized by the Agreement; c) such expenditures are for the above listed
purposes; d) the Company has met the minimum job requirement and minimum capital
investment; and e) the Company has met the other qualifications of 12-10-80(A)
of the Code.

"Final Claim" means the last proper claim for Job Development Credits, which
shall occur no later than the Final Quarter.

"Final Quarter" means the calendar quarter immediately following the earliest
of:
      (a) the calendar quarter that contains the Cut-off Date if the Company
failed to meet either the Minimum Job Requirement or the Minimum Capital
Investment;
      (b) the calendar quarter that contains the fifteenth anniversary of the
initial claim for Job Development Credits;
      (c) the calendar quarter during which the Company sent notice to the
Council and Department stating that it was making its final claim; or,
      (d) the calendar quarter during which a claim for Job Development Credits
was made which brings the total amount claimed up to the amount of Eligible
Project Costs.

"Final Report" means the last report to be filed with the Council and the
Department as provided in Section 3.6 of this Agreement.

"Full Time" has the same meaning as set forth in Section 12-6-3360(M)(4) of the
Code.

"Job Development Credit" means the credit claimed by the Company against
employee Withholding from Company employees pursuant to this Agreement and the
Code.

"Minimum Capital Investment" means the minimum capital investment in the Project
as specified in Exhibit A which must be expended by the Company with respect to
the Project prior to the Cut-off Date and prior to the initial claim for Job
Development Credits.

"Minimum Job Requirement" means the minimum number of New Jobs the Company has
agreed to create, prior to the Cut-Off Date, and maintain before claiming any
Job Development Credits. Once it meets the Minimum Job Requirement, the Company
may fall below the Minimum Job Requirement by 15 percent or exceed the Minimum
Job Requirement by 50 percent and remain eligible to claim Job Development
Credits.

"New Job" has the same meaning as set forth in SECTION 12-6-3360 of the Code
except that it shall be deemed to include only such jobs as are created at the
Project between the first day of the Company's taxable year in which it enters
into this Agreement and the Cut-off Date.

"Project" means the facilities to be operated by the Company which are described
as such in Exhibit A and used for the purposes specified in Exhibit A.

"Qualifying Business" means a "qualifying business" as defined in Section
12-10-50 of the Code.

"Reporting Period" means each calendar quarter commencing January 1, April 1,
July 1 and October 1. The first reporting period shall commence on the date the
Company first claims Job Development Credits under this Agreement and shall
extend through the following March 31, June 30, September 30, or December 31 and
the final reporting period is the Final Quarter.

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SC ENTERPRISE PROGRAM           REVITALIZATION AGREEMENT                      3

<PAGE>

"Revitalization" Document" means any document, instrument, agreement,
certificate, requisition, or report delivered by or on behalf of the Company in
connection with this Agreement.

"State" means the State of South Carolina.

"Withholding" means employee withholding under Chapter 8, Title 12 of the Code.

All capitalized terms used herein and in the Exhibits, not otherwise defined
herein, shall have the meanings ascribed thereto in the Code. All references to
sections in this Agreement shall refer to sections of the Code unless the
context clearly requires otherwise.

                   ARTICLE II. REPRESENTATIONS AND WARRANTIES

2.1      Representations and Warranties by the Company.

The Company hereby makes the following representations and warranties and
acknowledges and agrees that such representations and warranties have been
material to the Council's decision to enter into this Agreement and its
determination that the Company is a Qualifying Business and further agrees that
each representation and warranty shall be true, accurate and complete as of the
date of execution and delivery hereof and as of the date of any claim for
disbursement of the Job Development Credits:

      (a) The Company is a business entity as described in Exhibit A, duly
organized, validly existing and in good standing under the laws of the state
specified in Exhibit A, with power adequate for the carrying on of the business
now conducted and proposed in the Enterprise Program Application to be conducted
by it, and is duly qualified to conduct business in, and is in good standing in,
the State.

      (b) The execution, delivery and performance of this Agreement are within
the Company's power and authority, and the Company has duly authorized,
executed, and delivered such Agreement and has taken or will take all action
necessary to carry out and give effect to the transactions contemplated by the
Agreement.

      (c) Each part of this Agreement, including exhibits, is a legally valid
and binding obligation of the Company, enforceable against the Company in
accordance with its terms, except as may be limited by bankruptcy, insolvency or
similar laws affecting creditors rights.

      (d) This Agreement has been signed by an authorized representative as
defined by this agreement and such signature is recognized by the Company as
legally binding.

      (e) All written statements, representations and warranties made by or on
behalf of the Company to the Council in or in connection with the Enterprise
Program Application, and any materials furnished to the Council in connection
with the Enterprise Program Application, are true, accurate and complete in all
material respects to the best of the knowledge and belief of the Company at the
time made.

      (f) Prior to the Cut-off Date, the Company will invest not less than the
Minimum Capital Investment in the Project and the Project will result in the
creation of Full Time New Jobs equal to or greater than the Minimum Job
Requirement, prior to the Cut-Off Date.

      (g) The Company is a Qualifying Business, and the Project is and will be
located entirely within this State.

      (h) The Company has not, and will not, claim or use any return of any
overpayment of Withholding that results from claiming Job Development Credits
for any purpose other than those authorized by this Agreement.

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SC ENTERPRISE PROGRAM           REVITALIZATION AGREEMENT                      4

<PAGE>

      (i) No consent of any person or entity and no authorization or approval or
other action by, and no notice to or filing with, any governmental authority or
regulatory body is required for the due execution, delivery and performance by
the Company of this Agreement, or any other Revitalization Document, except such
as have been, or will be obtained before the initial claim for Job Development
Credits.

      (j) No alterations, additions, modifications, variations or changes of any
kind have been made to this original Agreement as provided by the Council. Any
and all special provisions and/or amendments to the original document shall be
provided for in Exhibit D.

2.2      Representations and Warranties by the Council.

The Council represents and warrants that it is the Advisory Coordinating Council
for Economic Development described in Section 12-10-30(1) of the Code, and it is
authorized to enter into this Agreement by Section 12-10-60 of the Code.

2.3      Survival of Representations.

All representations and warranties by the Company contained herein shall survive
the execution and delivery of this Agreement and any claiming of the Job
Development Credits. If, during any time prior to the filing of the Final
Report, the Company becomes aware of any facts, occurrences, information,
statements, or events that render any of the foregoing representations or
warranties untrue or materially misleading or incomplete, the Company shall
immediately notify the Council in writing of such facts, occurrences,
information, statements or events.

                 ARTICLE III. TERMS AND CONDITIONS OF AGREEMENT

3.1      Regulatory Compliance.

The Company agrees to comply with the Code and all regulatory requirements of
the Council and the Department regarding hiring for, and investment in, the
Project, documentation and reporting in connection with the claiming and use of
Job Development Credits to pay or offset Eligible Project Costs, and any other
matter covered by this Agreement.

3.2      Employment.

Between the date of this Agreement and the Cut-off Date, the Company agrees to
have employees in New Jobs at the Project in number equal to or exceeding the
Minimum Job Requirement and thereafter to maintain not less than the Minimum Job
Requirement until after the Final Quarter. Whether the number of New Jobs is
maintained will be determined in accordance with Section 12-6-3360 of the Code
and any regulations or rulings issued by the Department with respect to Code
Section 12-6-3360. Code Section 12-6-3360 provides that the number of new and
additional new full-time jobs is determined by comparing the monthly average
number of full-time employees subject to South Carolina income tax Withholding
in the applicable county for the taxable year with the monthly average in the
prior taxable year.

3.3      Obligations With Respect to the Project.

The Company agrees to acquire and/or construct the Project and to commence
operations at the Project on or before the Cut-off Date and shall expend upon
the Project amounts equal to or exceeding the Minimum Capital Investment on or
before such Cut-off Date. The Company shall be responsible for all costs,
contractual and otherwise associated with the acquisition, construction and
operation of the Project. Neither the Council, the State, nor any other agency
or department of the State shall be liable in any manner whatsoever to any
person for matters pertaining to or arising in connection with the Project, this
Agreement or any other Revitalization Document.

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SC ENTERPRISE PROGRAM           REVITALIZATION AGREEMENT                      5

<PAGE>

3.4      Corporate Existence, Operation of Project and Covenant Not to Dispose
         of Project.

Except upon the prior written consent of the Council, which consent will not be
unreasonably held, the Company shall maintain its existence, shall preserve and
maintain its rights and privileges to conduct business in the State, shall
operate and maintain the Project substantially as proposed in the Enterprise
Program Application and as outlined in Exhibit A, and shall not, during the term
of this Agreement:

      (a) consolidate with or merge into another entity, or sell, lease, convey
all or substantially all of its assets unless the surviving entity owning the
Project (i) assumes in writing the obligations of the Company hereunder, (ii)
provides evidence satisfactory to the Council that both before and after the
transaction referred to in this subparagraph that its assets exceed its
liabilities and it is and will be able to pay its debts as they come due; and
(iii) represents and warrants to the Council that it is in, and will be, in
compliance with the terms and conditions of this Agreement;

      (b) except as permitted under (a) above, or (c) below, sell, assign or
otherwise transfer the whole or any part of its interest in this Agreement; or

      (c) except as permitted under (a) above, or in connection with any
financing involving the Project, sell, lease convey, assign, transfer or
otherwise dispose of any material interest in the Project which would result in
the Company's failure to operate and maintain the Project substantially as
proposed in the Enterprise Program Application.

The Company shall give the Council written notice of any merger or consolidation
of the Company, assignment of this Agreement, any sale, lease or transfer of
substantially all of its assets or the assets of the Project or change in the
name or the location of its books and records or of any substantial change in
its business structure, or the nature of the operations conducted at the Project
within thirty days following the occurrence of such event.

3.5      Inspection, Record Keeping and Reporting.

The Company agrees to make its payroll books and records, Project records, and
the Project available for inspection by the Council and the Department at such
times and places as the Council or the Department may reasonably request. The
Company agrees to maintain records adequate to document compliance with this
Agreement.

Each time the Company submits a claim for Job Development Credits, the Company
shall provide the Council a written report, signed by an Authorized Company
Representative and in the form of Exhibit C, as to: (i) the total number of New
Jobs filled and maintained by the Company and the wage levels therefore, for
which the Job Development Credit will be claimed pursuant to Section 4.1 and 4.2
hereof; (ii) total Eligible Project Costs incurred by the Company, accompanied
by such documentation as the Council and Department shall require; (iii) the
amount of Job Development Credits claimed during such Reporting Period; and (iv)
the total amount of any return of an overpayment of Withholding resulting from
the claiming of Job Development Credits used to pay or offset Eligible Project
Costs since inception. Reports must be received by the Council at the time each
Job Development Credit is claimed and shall report such information for the
applicable Reporting Period and on a cumulative basis. In those instances where
the Company has claimed an amount in excess of ten thousand dollars during any
calendar year, the Company shall furnish to the Council and the Department on or
before the date provided in Section 12-1080(A) of the Code, an audited report
prepared by an independent certified public accountant which itemizes the
sources and uses of the Job Development Credits and any return of an overpayment
that results from the claiming of a Job Development Credit during such preceding
calendar year, which report shall include such information as the Council
requires in its Agreement on Audit Requirements in Exhibit E. Within three
months of the earlier of the Cut-Off Date or the date of completion of the
Project, the Company shall provide the Council and the Department with
documentation as to the number of New Jobs created between the first day of the
Company's taxable year in which it enters into this Agreement and the Cut-Off
Date or such completion date, and the Eligible Project Costs incurred prior to
the Cut-Off Date or such completion date, in form and content acceptable to the
Council.

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SC ENTERPRISE PROGRAM           REVITALIZATION AGREEMENT                      6

<PAGE>

3.6      Final Report.

No later than the last day of the first calendar month after the end of the
Final Quarter, the Company shall file a Final Report with the Council and the
Department setting forth the information requested in Section 3.5 above and
stating that it is the Final Report.

3.7      Release of Information.

The Company hereby authorizes the Council to provide any records and reports
relating to the Project or the Revitalization Documents to the Department that
the Department may request and the Company authorizes the Department to provide
any records and reports relating to the Project or the Revitalization Documents
to the Council that the Council may request.

After the Company enters into a Revitalization Agreement, the Council may
release to the public certain information pursuant to the S.C. Freedom of
Information Act. S.C. Code Section 30-40-40(a) provides that documents of and
incidental to a proposed contract or proposed sale or purchase of property ARE
NOT exempt from disclosure once the contract is entered into or the property is
sold or purchased. However, CONFIDENTIAL PROPRIETARY INFORMATION in these
documents provided to a public body for economic development or contract
negotiation purposes is NOT required to be disclosed. In accordance with
applicable law, the Council has established a policy to disclose any
Revitalization Agreement which is executed after June 12, 1998, if requested by
a member of the public. Any information in this Agreement that is clearly marked
by the Company as confidential proprietary pursuant to instructions contained in
the Agreement will be omitted from such disclosure pursuant to S.C. Code Section
30-4-40(a)(5)(c).

                     ARTICLE IV. ADMINISTRATION OF BENEFITS

4.1      Initial Claim For Job Development Credits.

      (a) The Company must notify the Council once it has met the Minimum Job
Requirement and the Minimum Capital Investment prior to the Company's initial
claim for Job Development Credits. The Company shall provide all documentation
the Council shall require to verify that the Minimum Job Requirement and Minimum
Capital Investment have been met. Within thirty days of the Council's
satisfaction that these requirements have been met, Council shall certify to the
Department that the Company is eligible to receive its initial Job Development
Credits. A Company may claim its initial Job Development Credit the quarter
after the Council has certified to the Department that the Company is a
qualifying business and has met the required Minimum Capital Investment and
Minimum Job Requirement. After certification by the Council to the Department,
the Company is authorized to submit claims for Job Development Credits beginning
on any date prior to the Cut-off Date  No Company shall claim Job Development
Credits under this Agreement for more than 15 years from the date of its
initial claim for Job Development Credits.

4.2      Claims for Job Development Credits.

      (a) Any Job Development Credit must be claimed on a quarterly basis. The
Company shall provide the Department and the Council with a written report
described in Section 3.5 of the Agreement with each claim for Job Development
Credits.

      (b) The Company shall be entitled to claim a credit against its
Withholding otherwise owed to this State in an amount not to exceed the lesser
of: (i) the amounts provided in Section 12-10-80(B) as limited by (C)(6) or (ii)
the total amount of Eligible Project Costs listed in Exhibit A. Any overpayment
of Withholding resulting from the claiming of a Job Development Credit may
result in a return of all or part of the Withholding to the Company. To the
extent any return of an overpayment of Withholding that results from claiming a
Job Development Credit is not used as permitted by the Code and this Agreement,
it must be treated as misappropriated Withholding.

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SC ENTERPRISE PROGRAM           REVITALIZATION AGREEMENT                      7
<PAGE>
      (c) For purposes of calculating gross wages, the employee's gross wages
for the calendar quarter, as properly reported to the Department for Withholding
purposes will apply. The Company shall not claim an amount that would result in
any employee ever receiving a smaller amount of wages than the employee would
otherwise receive in the absence of this Agreement.

      (d) In addition to maintaining the Minimum Job Requirement described in
Section 4.3 below, the Company shall have satisfied the following conditions
prior to claiming a Job Development Credit:

         (i)   All material representations and warranties by or on behalf of
               the Company contained herein or in any Revitalization Document
               shall be true, accurate and complete in all material respects.

         (ii)  The Company shall not be in default hereunder;

         (iii) The Company shall have complied with all agreements and satisfied
               all conditions on its part to be performed or satisfied
               hereunder;

         (iv)  The Company shall have provided the Council and the Department
               with all documentation reasonably requested by the Council or the
               Department.

         (v)   The Company shall not be delinquent with respect to any taxes, as
               that term is defined in Section 12-60-30(27) of the Code, that
               have been assessed.

4.3      Effect of Failure to Maintain Minimum Job Requirement

Once the Company has met the Minimum Job Requirement, if it fails to maintain
the Minimum Job Requirement during any Reporting Period, the Company may not
claim Job Development Credits for such period. The fifteen year period described
in Section 12-10-80(A) of the Code will continue to run during any period in
which the Company fails to maintain the Minimum Job Requirement. Whether the New
Jobs have been created and maintained will be determined by Section 12-6-3360 of
the Code and any regulations or rulings of the Department with respect to
Section 12-6-3360 of the Code. Code Section 12-6-3360 provides that the number
of new and additional new full-time jobs is determined by comparing the monthly
average number of full-time employees subject to South Carolina income tax
Withholding in the applicable county for the taxable year with the monthly
average in the prior taxable year.

4.4      Final Requisitions and Disbursements.

The Company shall have no right to claim or receive Job Development Credits
after the Final Quarter unless the Council and the Department have approved a
claim because of a patent error on the part of the the Council or the Department
in calculating the amount of Job Development Credits allowable hereunder.

4.5      Excess Job Development Credits and Job Development Credits Issued in
         Error to Be Paid to Department.

The Company agrees that any return of an overpayment of Withholding that results
from the claiming of a Job Development Credit may only be used to pay or
reimburse the Company for Eligible Project Costs. The Company also agrees that
the Company may not claim Job Development Credits in excess of one hundred
percent (100%) of the amount of Project Costs listed in Exhibit A. Any return of
an overpayment of Withholding that results from claiming Job Development Credits
which are not expended for eligible and approved Project Costs shall be paid
back to the Department.

The Company shall remit to the Department any return of an overpayment of
Withholding issued in error by the Department within thirty days following
discovery. To the extent any return of an overpayment of Withholding that
results from claiming Job Development Credits is used in a manner other than as
permitted under this Agreement, such use shall be treated as misappropriated
Withholding.

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SC ENTERPRISE PROGRAM           REVITALIZATION AGREEMENT                      8
<PAGE>

                          ARTICLE V. EVENTS OF DEFAULT

5.1      Events of Default.

The following shall constitute events of default by the Company under this
Agreement:

    (a) if any representation or warranty made by the Company herein or in any
other Revitalization Document is false or misleading in any material respect at
the time made;

    (b) failure of the Company to observe and perform any covenant, condition or
agreement hereunder on its part to be performed and continuance of such failure
for a period of thirty (30) days after receipt by the Company of written notice
from the Council or the Department specifying the nature of such failure and
requesting that it be remedied; provided, however, that if, by reason of the
nature of such failure, the same cannot be remedied within the said 30 days and
the Company proceeds with reasonable diligence after receipt of the notice to
cure the failure, the period may be extended upon the prior written consent of
the Council;

    (c) failure of the Company to comply with any statutory, regulatory or
guideline requirements necessary to claim Job Development Credits in existence
at the time the Company claims a Job Development Credit;

    (d) the Company shall consent to the appointment of a receiver, trustee or
liquidator of itself or of a substantial part of its property, or shall admit in
writing its inability to pay its debts generally as they come due, or shall make
a general assignment for the benefit of creditors;

    (e) the Company shall file a voluntary petition in bankruptcy or a voluntary
petition or an answer seeking reorganization in a proceeding under any
bankruptcy laws (as now or hereafter in effect), or it shall, by voluntary
petition, answer or consent, seek relief under the provisions of any other now
existing or future bankruptcy or other similar law providing for the
reorganization or winding-up of corporations, or providing for an agreement,
composition, extension or adjustment with its creditors;

    (f) an order, judgment or decree shall be entered in any proceeding by any
court of competent jurisdiction appointing, without the consent of the Company,
a receiver, trustee or liquidator of the Company or of any substantial part of
its property, or sequestering any substantial part of its property, and any such
order, judgment or decree of appointment or sequestration shall remain in force
undismissed, unstayed or unvacated for a period of 90 days after the date of
entry thereof, or

    (g) a petition against the Company in a proceeding under applicable
bankruptcy laws or other insolvency laws as now or hereafter in effect, shall be
filed and shall not be withdrawn or dismissed within 120 days thereafter, or if,
under the provisions of any law providing for reorganization or winding-up of
corporations which may apply to the Company, any court of competent jurisdiction
shall assume jurisdiction, custody or control of it or of any substantial part
of its property and such jurisdiction, custody or control shall remain in force
unrelinquished, unstayed or unterminated for a period of 120 days.

5.2      Remedies.

If any Event of Default shall occur and be continuing, then the Council may
undertake any of the remedial actions set forth in this Agreement. If any such,
Event of Default shall occur and be continuing, then the Council shall, to the
extent permitted by law and without notice of any kind to the Company (except to
the extent required by law or as expressly required herein), seek to enforce the
rights of the Council and the Department hereunder by exercising any of the
following remedies:

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SC ENTERPRISE PROGRAM           REVITALIZATION AGREEMENT                      9
<PAGE>

    (a) By written notice to the Company and the Department, reduce or suspend
the rights of the Company under ARTICLE IV of this Agreement until such time as
the Company is in full compliance.

    (b) Terminate the rights of the Company under ARTICLE IV of this Agreement
if Company fails to cure any Event of Default.

    (c) Take such other action as may be necessary to protect its rights and
interests hereunder.

5.3      Consent of Council to Benefits During Existence of Default.

Notwithstanding anything herein to the contrary, there shall be no return of any
overpayment of Withholding that results from the claiming of Job Development
Credits nor any Job Development Credits claimed by the Company against
Withholding pursuant to ARTICLE IV hereof, without the written consent of the
Council during any period as to which an Event of Default exists.

5.4      Additional Remedial Provisions.

    (a) No remedy herein conferred or reserved to the Department or the Council
is intended to be exclusive of any other available remedy or remedies, but each
and every such remedy shall be cumulative and shall be in addition to every
other remedy given under this Agreement or now or hereafter existing at law or
in equity or by statute. No delay or omission to exercise any right or power
accruing upon any default shall impair any such right or power or shall be
construed to be a waiver thereof; nor shall any single or partial exercise of
any right hereunder preclude any other or further exercise thereof or the
exercise of any other right. A waiver of any particular breach or default under
any provision hereof shall not operate as a waiver of any further or subsequent
breach or default under such provision. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law, and any such right
and power may be exercised from time to time and as often as may be deemed
expedient. In order to entitle the Department or Council to exercise any remedy
reserved to them in this Agreement, it shall not be necessary to give notice
other than such notice as may be required in this Agreement.

    (b) Neither the Department nor the Council shall be required to do any act
whatsoever or exercise any diligence whatsoever to mitigate the damages to the
Company if an Event of Default shall occur hereunder.

                            ARTICLE VI. MISCELLANEOUS

6.1      Severability.

Any provision of this Agreement which is or becomes illegal, invalid or
unenforceable in any respect shall not in any way affect or impair the legality,
validity and enforceability of the other provisions of this Agreement.

6.2      No Set-off.

The existence of any claim, set-off, defense or other rights which the Company
or any Affiliate may have at any time against the Council, the Department, the
State or any other agency or department of the State, shall not be deemed to
create any right to setoff or counterclaim with respect to any other obligation
of the Company or its Affiliates to the State or any of its agencies,
departments or political subdivisions in connection with this Agreement, any
other Revitalization Document or any of the transactions contemplated hereby or
thereby.

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SC ENTERPRISE PROGRAM           REVITALIZATION AGREEMENT                      10
<PAGE>

6.3      Notices.

Notices hereunder shall be sent by certified mail, return receipt requested,
hand delivery or facsimile transmission (promptly followed by certified mail) or
overnight courier as follows:

         If to the Council:

                  SC Advisory Coordinating Council for Economic Development
                  Attn: Director
                  Regular Mail Address
                  P.O. Box 927
                  Columbia, South Carolina 29202
                  Telephone No.: (803) 737-0095
                  Facsimile No.: (803) 737-0571
                  Overnight Courier Address
                  1201 Main Street, Suite 1700
                  Columbia, South Carolina 29201

        If to the Department:

                  SC Department of Revenue, Administrative Division
                  Regular Mail Address
                  P.O. Box 125
                  Columbia, South Carolina 29214
                  Telephone No.: (803) 737-4402
                  Facsimile No.: (803) 737-9881
                  Overnight Courier Address
                  Columbia Mills Building
                  301 Gervais Street
                  Columbia, South Carolina 29201

        If to the Company:

                  At the address or facsimile number specified in
                  Exhibit A.

Notices that are hand delivered or sent by overnight carrier are deemed given
upon receipt. Notices sent by facsimile transmission (promptly followed by
certified mail) are deemed given upon receipt of the facsimile transmission.
Notices sent by certified mail are deemed given on the earlier of receipt or on
the fifth business day after sending. The parties shall by notice given
hereunder designate changes of address for purposes of this Agreement.

6.4      Governing Laws.

This Agreement is made under and shall be construed in accordance with the laws
and regulations of the State of South Carolina. By executing this Agreement, the
Company agrees to submit to the jurisdiction of the Council, Department and the
Courts of South Carolina for all matters arising hereunder. In the event of a
dispute, the Department or the Council shall have standing to represent the
State of South Carolina.

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SC ENTERPRISE PROGRAM           REVITALIZATION AGREEMENT                      11
<PAGE>

6.5      Release and Indemnification.

The Company hereby releases the Council, the Department and the State and their
respective officers, directors, members, employees, attorneys and agents,
(hereinafter collectively referred to as "Indemnified Parties") from, and agrees
that such Indemnified Parties shall not be liable for, and agrees to indemnify
and hold harmless the Indemnified Parties against any or all liability or loss,
cost or expense, including without limitation, attorneys' fees, fines, penalties
and civil judgments, resulting from or arising out of or in connection with or
pertaining to any loss or damage to property or any injury to or death of any
Person occurring in connection with or on or about the Project or resulting from
any defect in the fixtures, machinery, equipment or other property used in
connection with the Project or arising out of, pertaining to, or having any
connection with, the Project or the financing thereof (whether or not arising
out of acts, omissions or negligence of the Company or any of its agents,
contractors, servants, employees, licensees, lessees or assignees).The Company's
obligations under this Section shall survive the termination or other expiration
of this Agreement.

6.6      Continuing Obligation; Assignment.

All covenants, agreements, representations and warranties made or incorporated
herein and in certificates delivered pursuant hereto shall be deemed to have
been material and relied on by the Council and the Department, notwithstanding
any investigation made by the Council or the Department on its own behalf, and
shall survive the execution and delivery of the Agreement and the Revitalization
Documents. This Agreement is a continuing obligation and shall (a) be binding
upon the parties and their respective successors and assigns and (b) inure to
the benefit of and be enforceable by the parties and their respective
successors, transferees and assigns; provided, that, except as provided in
Section 3.4 hereof, the Company may not assign all or any part of this Agreement
without the written notice consent of the Council.

6.7      Additional Matters.

    (a) The parties understand that the Company may choose not to proceed with
the Project or not to finance a portion of the Project as herein provided,
subject to the Company having all benefits hereunder terminated if the Company
exercises its right not to proceed with the Project in its entirety.

    (b) This Agreement, together with Exhibits attached hereto, which are hereby
incorporated by reference as if set forth in their entirety herein, constitute
the entire agreement as to the matters set forth herein, and supersede all prior
agreements and understandings, both written and oral among the parties with
respect to the subject matter hereof and may be executed simultaneously in
several counterparts, each of which shall be deemed an original, and all of
which together shall constitute one and the same instrument. If and to the
extent of any direct language conflict between and/or among this Agreement and
the other Revitalization Documents, the terms of this Agreement shall control.

    (c) Modifications or waivers of any provisions of this Agreement or any
other Revitalization Document must be in writing.

    (d) The execution, delivery and performance of this Agreement or any other
Revitalization Agreement shall not be deemed a waiver or any deferral of
sovereign immunity which may otherwise be available to a governmental body or
entity of the State.

    (e) To the extent that any provision of this Agreement is determined to be
in contradiction of, or in conflict with the Code, any State law, or any
regulation, the Code, State law or regulation shall control.

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SC ENTERPRISE PROGRAM           REVITALIZATION AGREEMENT                      12
<PAGE>

    IN WITNESS WHEREOF, this Agreement has been executed as of the date
specified on the cover hereof.

                                        SOUTH CAROLINA COORDINATING COUNCIL
                                        FOR ECONOMIC DEVELOPMENT

                                        By: /s/ Alan D. Young

                                        Its: Director of Grants

                                        Date:  8-11-04

                                        Company:  Safe Auto Insurance Co.

                                        By:       /s/ Greg Sutton
                                                  ------------------------------
                                                      Greg Sutton

                                        Its:      Chief Financial Officer

                                        Date:     7/16/04

Sworn to before me this
16th day of July 2004

/s/ DeLaina L. Borders
------------------

Notary Public for the State of South Carolina
My commission expires: April 23, 2008

[NOTARY SEAL]        DELAINA L. BORDERS
                        NOTARY PUBLIC
                In and for the State of Ohio
                    My Commission Expires
                        April 23, 2008

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SC ENTERPRISE PROGRAM           REVITALIZATION AGREEMENT                      13
<PAGE>

                                    EXHIBITS

EXHIBIT A -- PROJECT DETAILS

EXHIBIT B -- APPROVED EMPLOYMENT POSITIONS

EXHIBIT C -- QUARTERLY REPORT FORM - (not included in RVA)

EXHIBIT D -- SPECIAL PROVISIONS AND AMENDMENTS

EXHIBIT E - Intentionally left blank

EXHIBIT F - COST/BENEFIT ANALYSIS

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SC ENTERPRISE PROGRAM           REVITALIZATION AGREEMENT                      14

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