Document:

<PAGE>

                                                                   EXHIBIT 10.32

                  SEVERANCE AGREEMENT DUE TO CHANGE IN CONTROL
                              OF CORTLAND BANCORP.

     This AGREEMENT is made and entered into this ___ day of _________, 2001, by
and among Cortland Bancorp. (the "Corporation"), a corporation organized under
the laws of the State of Ohio, with its main office in Cortland, Ohio, The
Cortland Savings and Banking Company (the "Bank"), an Ohio-chartered,
FDIC-insured member bank with its main offices in Cortland, Ohio and Marlene
Lenio (the "Employee"). Any reference to the "Board of Directors" herein shall
mean the Board of Directors of the Corporation.

     WHEREAS, the Employee has heretofore served the Bank in the position of
Vice President, Manager of Computer Operations:

     NOW THEREFORE, in consideration of the performance of the responsibilities
of the Employee and upon the other terms and conditions hereinafter provided,
the parties hereto agree as follows:

     1. No Employment Contract

          The parties hereto acknowledge and agree that this Agreement is not a
management or employment agreement and that none of the terms and conditions
contained herein shall be effective until such time as there is a Change in
Control as hereinafter defined in this Agreement. Prior to a Change in Control,
the Employee agrees and acknowledges that he is an employee-at-will of the Bank.

     2. Term of Agreement

          The term of this Agreement shall be a period of three years commencing
on January 1, 2001 (the "anniversary"). On each anniversary of this Agreement,
the term shall be extended for a period of one year in addition to the
then-remaining term, provided that the Corporation has not given notice to the
Employee in writing at least 90 days prior to such anniversary that the term of
this Agreement shall not be extended further. Unless sooner terminated as set
forth herein, this contract shall terminate when the Employee reaches age
sixty-five (65).

     3. Termination for Cause

          (a) The Employee shall have no right to receive severance or other
benefits under this Agreement for any period after the date of termination for
Cause. For purposes of this Agreement, termination by the Corporation or the
Bank for "Cause" shall mean only the following events:

               (i)  personal dishonesty;

<PAGE>

               (ii) incompetence;

               (iii) material breach of any provision of this Agreement;

               (iv) breach of a fiduciary duty involving personal gain or
                    profit;

               (v)  intentional failure to perform stated duties;

               (vi) a willful and material breach of the policies and procedures
                    for the operation of the Bank provided to the Employee by
                    formal action of the Board of Directors;

               (vii) willful violation of any law, rule, regulation (other than
                    a law, rule or regulation relating to a traffic violation or
                    similar offense) or final cease-and-desist order; or

               (viii) willful misconduct.

          (b)  (i)  For purposes of Paragraph 3(a)(ii), "incompetence" shall
                    mean the Employee's performance of his duties as measured
                    against the then prevailing standards in the Ohio banking
                    industry.

               (ii) For purposes of Paragraph 3(a)(vii) and 3(a)(viii), no act,
                    or failure to act, on the Employee's part shall be
                    considered "willful" unless he has acted, or failed to act,
                    with an absence of good faith and without a reasonable
                    belief that his action or failure to act was in the best
                    interest of the Bank.

               (iii) For purposes of Paragraph 3(a)(vii), a cease-and- desist
                    order shall not become final until consent by the
                    Corporation or the Bank, as the case may be, to such order,
                    or the exhaustion or lapse of all (administrative and
                    judicial) appeal rights in relation thereto.

     4. Voluntary Termination of Agreement

          This Agreement may be terminated by the Employee at any time upon
ninety (90) days' written notice to either the Bank or the Corporation or upon
such shorter period as may be agreed upon between the Employee and the Board of
Directors.

     5. Change in Control

          (a) If, during the term of this Agreement, there is a Change in
Control of the Corporation, the Employee shall be entitled to a termination or
severance payment. The amount of this severance payment shall be the benefits
specified in Paragraph 6 of this Agreement.

<PAGE>

          (b) For purposes of this Agreement, a "Change in Control of the
Corporation" shall mean any one or more of the following:

               (i)  The acquisition by a person or persons acting in concert of
                    the power to vote twenty-five percent (25%) or more of a
                    class of the Corporation's voting securities;

               (ii) the acquisition by a person of the power to direct the
                    Corporation's management or policies, if the Board of
                    Directors has made a determination that such acquisition
                    constitutes or will constitute an acquisition of control of
                    the Corporation for the purposes of the Bank Holding Company
                    Act or the Change in Bank Control Act and the regulations
                    thereunder;

               (iii) during any period of two (2) consecutive years during the
                    term of this Agreement, individuals who at the beginning of
                    such period constitute the Board of Directors of the Bank or
                    the Corporation cease for any reason to constitute at least
                    a majority thereof, unless the election of each director who
                    was not a director at the beginning of such period has been
                    approved in advance by directors representing at least
                    two-thirds (2/3) of the directors then in office;

               (iv) the Corporation shall have merged into or consolidated with
                    another corporation, or merged another corporation into the
                    Corporation, on a basis whereby less than fifty percent
                    (50%) of the total voting power of the surviving corporation
                    is represented by shares held by persons who were
                    shareholders of the Corporation immediately before such
                    merger or consolidation;

               (v)  the Corporation shall have sold substantially all of its
                    assets to another person.

               The term "person" refers to an individual, corporation,
partnership, trust, association, joint venture, pool, syndicate, sole
proprietorship, unincorporated organization or other entity.

               Notwithstanding the foregoing, a Change in Control of the
Corporation shall not be deemed to occur solely because any person acquires
beneficial ownership of more than 25% of the Corporation voting securities as a
result of the acquisition of Corporation voting securities by the Corporation
which reduces the number of Corporation's voting securities outstanding;
provided, that if after such acquisition by the Corporation such person becomes
the beneficial owner of additional Corporation voting securities that increases
the percentage of

                                        3

<PAGE>

outstanding Corporation voting securities beneficially owned by such person, a
Change in Control of the Corporation shall then occur.

     6. Termination Benefits

          (a) Upon the occurrence of a Change in Control, the Corporation shall
pay Employee, or in the event of his subsequent death, his beneficiary or
beneficiaries, or his estate, as the case may be, as severance pay or liquidated
damages, or both, a lump-sum cash payment equal to one (1) year of Compensation
(as defined in the next sentence). As used herein, "Compensation" shall mean the
sum of Employee's then current annual base salary paid during the year the
Change in Control of the Corporation occurs plus any bonuses earned for the last
whole calendar year preceding the year in which the Change in Control of the
Corporation occurs (regardless of whether the bonus earned for that year's
service is paid that year). Bonuses refers to compensation of the type that
would be required to be reported by Securities and Exchange Commission Rule
228.402(b) (17 C.F.R. Section 228.402(b), specifically column (d) of that rule's
Summary Compensation Table (or any successor provision) and identified by the
Corporation in its 2000 Schedule 14A as the Profit Sharing Program.

          (b) Upon the Employee's termination of employment arising within one
(1) year after the occurrence of a Change in Control of the Corporation, the
Corporation will continue to provide, for three years after Employee's
termination of employment, the Employee (and the Employee's dependents if
applicable) with the same level of club memberships and medical, dental,
accident, disability and life insurance benefits upon substantially the same
terms and conditions (including cost of coverage to the Employee) as existed
prior to Employee's severance; provided that, if the Employee cannot continue to
participate in the Corporation's plans providing such benefits, the Corporation
shall otherwise provide such benefits on the same after-tax basis as if
continued participation had been permitted. Notwithstanding the foregoing, in
the event the Employee becomes reemployed with another employer, and becomes
eligible to receive welfare benefits from such employer, the welfare benefits
described herein shall be secondary to such benefits during the period of the
Employee's eligibility, but only to the extent that the Corporation reimburses
the Employee for any increased cost and provides any additional benefits
necessary to give the Employee the benefits hereunder.

     1. Payment of Legal Fees

          (a) The Corporation is aware that upon the occurrence of a Change in
Control, then current management of the Corporation may cause or attempt to
cause the Corporation to refuse to comply with its obligations under this
Agreement, or may cause or attempt to cause the Corporation to institute, or may
institute, litigation seeking to have this Agreement declared unenforceable, or
may take, or attempt to take, other action to deny Employee the benefits
intended under this Agreement. In these circumstances, the purpose of this
Agreement could be frustrated. It is the intent of the Corporation that Employee
not be required to incur the expenses associated with the enforcement of his
rights under this Agreement by litigation or other legal

                                        4

<PAGE>

action because the cost and expense thereof would substantially detract from the
benefits intended to be extended to Employee hereunder, nor be bound to
negotiate any settlement of his rights hereunder under threat of incurring such
expenses. Accordingly, if following a Change in Control of the Corporation it
should appear to Employee that (i) the Corporation has failed to comply with any
of its obligations under this Agreement, or (ii) the Corporation or the Bank, as
the case may be, has failed to comply with any other plan or arrangement
maintained by the Corporation or the Bank under which the Employee is or may be
entitled to receive benefits or (iii) in the event that the Corporation or any
other person takes any action to declare this Agreement void or unenforceable,
or institutes any litigation or other legal action designed to deny, diminish or
to recover from, Employee the benefits intended to be provided to Employee
hereunder, the Corporation irrevocably authorizes Employee from time to time to
retain counsel of his choice at the expense of the Corporation as provided in
this Paragraph 7, to represent Employee in connection with the initiation or
defense of any litigation or other legal action, whether by or against the
Corporation or any director, officer, stockholder or other person affiliated
with the Corporation, in any jurisdiction. The fees and expenses of counsel
selected from time to time by Employee as hereinabove provided shall be paid or
reimbursed to Employee by the Corporation on a regular, periodic basis upon
presentation by Employee of a statement or statements prepared by such counsel
in accordance with such counsel's customary practices, up to a maximum aggregate
amount of $500,000.

          (b) Upon the occurrence of a Change in Control, the $500,000 cap on
legal fee reimbursement will be subject to a cost of living adjustment equal to
the value of the expression A x B, in which expression:

          A = $500,000; and

          B= Cost of living adjustment or inflation factor. This is computed by
          dividing the Consumer Price Index for All Urban Consumers ("CPI-U")
          prepared by the U.S. Bureau of Labor Statistics, or any successor
          thereto, for the CPI-U for January of the year during which the Change
          in Control occurs by the CPI-U for January 2000.

The cost of living adjustment provided in this Paragraph 7(b) shall be
considered to be part of Employee's payment of legal fees for purposes of this
Agreement.

          (c) Illustration. To explain the cost of living adjustment calculation
for Payment of Legal Fees, we will use the following example.

          First, we determine the appropriate CPI-Us. The Agreement calls for
the use of the CPI-Us for January 2000 and the January of the year during which
the Change in Control occurs. Assume a Change in Control occurs in April 2009.
For illustrative purposes only, the CPI-U for January 2000 is 156.7, and the
CPI-U for January 2009 is 213.3.

          Second, we calculate the cost of living adjustment or inflation
factor. To do this,

                                        5

<PAGE>

we divide the CPI-U for January 2009 (213.3) by the CPI-U for January 2000
(156.7). Our result is 1.361 (i.e., a 36.1 percent increase).

          Finally, we calculate the raw cost of living adjustment. To do this,
we multiply the base Payment of Legal Fees amount by the inflation factor. In
our example, $500,000 multiplied by the inflation factor of 1.361 equals
$680,500.

     8. Provision for Out Placement and Financial Planning Services

          (a) In the event of Employee's termination of employment following a
Change in Control of the Corporation, Employee shall be entitled to one year of
out placement services following termination of employment. Such services shall
include employment counseling, resume services, executive placement services and
similar services generally provided to executives by professional executive out
placement service providers. All costs of such out placement services shall be
paid for by the Corporation.

          (b) In the event of Employee's termination of Employment following a
Change in Control of the Corporation, Employee shall be entitled to three years
of financial planning services following termination of Employment. All costs of
such financial planning services shall be paid for by the Corporation. Financial
planning services paid for by the Corporation shall assist the Employee in tax
preparation and financial planning with respect to the Employee's receipt of
Total Benefits and their impact on the Employee's economic standing.

     9. Successor Organization

          The obligations of the Corporation and the Bank as set forth herein
shall continue to be the obligation of any successor organization, any
organization which purchases substantially all of the liabilities of the
Corporation or the Bank, as well as any organization which assumes substantially
all of the liabilities of the Corporation or the Bank whether by merger,
consolidation, or other form of business combination. This Agreement is personal
to the Employee and the Employee may not delegate his duties hereunder.

     10. Notices

          All notices, requests, demands and other communications hereunder
shall be in writing and shall be deemed to have been duly given if delivered by
hand or mailed, certified or registered mail, return receipt requested, with
postage prepaid, to the following addresses or to such other address as either
party may designate by like notice.

A.   If to the Corporation, to:

                                       6

<PAGE>

               Board of Directors
               Cortland Bancorp.
               194 West Main Street
               Cortland, Ohio 44410

B.   If to the Employee, to:
               Ms. Marlene Lenio

and to such other or additional person or persons as either party shall have
designated to the other party in writing by like notice.

     11. No Mitigation Required

          There shall be no requirement that Employee mitigate any damages or
reduce the amount of any payment provided for in this Paragraph 6 by seeking
other employment or otherwise, nor shall the amount of any payment provided for
in this Paragraph 6 be reduced by any compensation earned by Employee as the
result of employment by any other employer after the date of termination or
otherwise.

     12. Amendments

          No amendments or additions to this Agreement shall be binding unless
in writing and signed by both parties, except as herein otherwise provided.

     13. Paragraph Headings

          The paragraph headings used in this Agreement are included solely for
convenience and shall not effect, or be used in connection with, the
interpretation of this Agreement.

     14. Severability

          The provisions of this Agreement shall be deemed severable and the
invalidity or unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.

     15. Governing Law

                                        7

<PAGE>

          This Agreement shall, except to the extent that federal law shall be
deemed to apply, be governed by and construed and enforced in accordance with
the laws of Ohio.

     16. Arbitration

          Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration in accordance with the
rules of the American Arbitration Association then in effect. Judgment may be
entered on the arbitrator's award in any court having jurisdiction.

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

WITNESSES:                              CORTLAND BANCORP.

                                        By:
-------------------------------------       ------------------------------------
                                        Its:
-------------------------------------        -----------------------------------

WITNESSES:                              THE CORTLAND SAVINGS & BANKING COMPANY

                                        By:
-------------------------------------       ------------------------------------
                                        Its:
-------------------------------------        -----------------------------------

WITNESSES:

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

-------------------------------------
("Employee")

                                        8EX-4.2

 

EXHIBIT 4.2

FIRST AMENDMENT TO

REVOLVING CREDIT AND LETTER OF CREDIT ISSUANCE AGREEMENT

By and Among

RTI INTERNATIONAL METALS, INC.,

as Borrower

and

THE FINANCIAL INSTITUTIONS PARTY HERETO,

as Lenders

and

NATIONAL CITY BANK OF PENNSYLVANIA

and

COMERICA BANK

as Documentation Agents

and

PNC BANK, NATIONAL ASSOCIATION,

as Agent

Dated as of June 4, 2004

and arranged by:

PNC CAPITAL MARKETS, INC.,

as sole arranger

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 
	 	 	 	 
	ARTICLE I	 	AMENDMENTS TO ORIGINAL CREDIT AGREEMENT
	 	 	2	 
	   Section 1.01.	 	Amendment to the First Paragraph of the Original Credit Agreement.
	 	 	2	 
	   Section 1.02.	 	Amended Definitions
	 	 	2	 
	   Section 1.03.	 	Additional Definitions
	 	 	3	 
	   Section 1.04.	 	Amendment of Definition of Permitted Liens
	 	 	4	 
	   Section 1.05.	 	Amendment to Section 2.01
	 	 	4	 
	   Section 1.06.	 	Amendment to Section 2.03
	 	 	4	 
	   Section 1.07.	 	Amendment to Subsection 2.08(b)(i)
	 	 	4	 
	   Section 1.08.	 	Amendments to Section 2.17.
	 	 	4	 
	   Section 1.09.	 	Amendment to Article II.
	 	 	10	 
	   Section 1.10.	 	Amendment to Article IV.
	 	 	10	 
	   Section 1.11.	 	Amendment to Section 6.02.
	 	 	11	 
	   Section 1.12.	 	Amendment to Section 7.12
	 	 	11	 
	   Section 1.13.	 	Amendment to Section 9.01
	 	 	11	 
	   Section 1.14	 	Amendment to Section 9.08.
	 	 	12	 
	   Section 1.15.	 	Amendment to Section 9.17
	 	 	12	 
	   Section 1.16.	 	Amendment to Article IX
	 	 	12	 
	   Section 1.17.	 	Amendment to Section 10.01
	 	 	12	 
	   Section 1.18.	 	Amendment to Section 10.04
	 	 	13	 
	   Section 1.19.	 	Amendment to Section 10.11
	 	 	13	 
	   Section 1.20.	 	Amendment to Article X
	 	 	13	 
	   Section 1.21.	 	Schedules
	 	 	13	 
	   Section 1.22.	 	No Other Amendments
	 	 	13	 
	 	 	 
	 	 	 	 
	ARTICLE II	 	BORROWER’S SUPPLEMENTAL REPRESENTATIONS
	 	 	14	 
	   Section 2.01	 	Incorporation by Reference
	 	 	14	 
	   Section 2.02.	 	Corporate Authority
	 	 	14	 
	   Section 2.03.	 	Capitalization and Ownership
	 	 	14	 
	   Section 2.04.	 	Validity of this First Amendment
	 	 	14	 
	   Section 2.05.	 	Financial Statements
	 	 	14	 
	   Section 2.06.	 	Absence of Litigation
	 	 	14	 
	   Section 2.07.	 	No Material Adverse Change
	 	 	15	 
	 	 	 
	 	 	 	 
	ARTICLE III	 	CONDITIONS PRECEDENT
	 	 	15	 
	   Section 3.01.	 	Conditions Precedent
	 	 	15	 
	 	 	 
	 	 	 	 
	ARTICLE IV	 	GENERAL PROVISIONS
	 	 	16	 
	   Section 4.01.	 	Ratification of Terms
	 	 	16	 
	   Section 4.02.	 	References
	 	 	16	 
	   Section 4.03.	 	Incorporation Into Original Credit Agreement
	 	 	17	 
	   Section 4.04.	 	Counterparts
	 	 	17	 
	   Section 4.05.	 	Capitalized Terms
	 	 	17	 
	   Section 4.06.	 	Taxes
	 	 	17	 
	   Section 4.07.	 	Costs and Expenses
	 	 	17	 
	   Section 4.08.	 	Severability
	 	 	17	 
	   Section 4.09.	 	Governing Law
	 	 	17	 
	   Section 4.10.	 	Headings
	 	 	17	 
	   Section 4.11.	 	Acknowledgment of Amendment of the Revolving Credit Note
	 	 	17	 
	   Section 4.12.	 	First Amendment Effective Date Adjustment of Commitments.
	 	 	17	 

SCHEDULES

- i -

 

Revised Schedule 1.01(a) Lenders; Revolving Credit Commitments

 - ii -

 

FIRST AMENDMENT TO

REVOLVING CREDIT AND LETTER OF CREDIT ISSUANCE AGREEMENT

THIS FIRST AMENDMENT TO REVOLVING CREDIT AND LETTER OF CREDIT ISSUANCE AGREEMENT (this “First
Amendment”) dated as of June 4, 2004, by and among RTI INTERNATIONAL METALS, INC., an Ohio
corporation (as more fully defined below, the “Borrower”), the financial institutions a party
hereto as lenders, NATIONAL CITY BANK OF PENNSYLVANIA and COMERICA BANK, as documentation agents
(the “Documentation Agents”), and PNC BANK, NATIONAL ASSOCIATION, as agent for each L/C Issuer (as
hereinafter defined) and the Lenders under this Agreement (in such capacity, as more fully defined
below, the “Agent”), is made and entered into with respect to that certain Revolving Credit and
Letter of Credit Issuance Agreement dated as of April 12, 2002 (such Revolving Credit Agreement,
together with the exhibits and schedules thereto and all amendments, modifications and supplements
prior to the date hereof, the “Original Credit Agreement”), is made by and among the Borrower, the
financial institutions a party thereto as lenders, the financial institutions a party thereto as
the documentation agents, the L/C Issuer and the Agent.

WITNESSETH:

WHEREAS, the Borrower, the financial institutions a party thereto as lenders (the “Original
Lenders”), the financial institutions a party thereto as documentation agents, the L/C Issuer and
the Agent have entered into the Original Credit Agreement pursuant to which the Original Lenders
have made certain financial accommodations available to the Borrower, including a revolving credit
commitment, a swingline loan commitment and a letter of credit subfacility;

WHEREAS, the Borrower has requested an extension of such financial accommodations;

WHEREAS, US Bank, Fleet National Bank and HSBC Bank USA (each an “Non-Extending Bank”; and
collectively the “Non-Extending Banks”) have declined to consent to such extension; the
Non-Extending Banks have agreed to sell and assign their respective rights, titles and interests in
and to the Original Credit Agreement and the Loan Documents; and PNC Bank, National Association,
National City Bank of Pennsylvania, Comerica Bank and Fifth Third Bank have agreed to purchase the
interests of the Non-Extending Banks pursuant to the terms of that certain Master Assignment and
Assumption dated as of June 4, 2004, by and among the Borrower, the financial institutions a party
hereto as lenders, the Non-Extending Banks, the L/C Issuer and the Agent;

WHEREAS, the Borrower, the financial institutions a party hereto as lenders, the Documentation
Agents, the L/C Issuer and the Agent have agreed pursuant to the terms hereof (i) to extend the
Expiration Date of the Revolving Credit Commitment until May 31, 2008, and (ii) to amend certain
additional provisions of the Original Credit Agreement on the terms set forth below, including
without limitation thereto a reduction in the aggregate Revolving Credit Commitment on the date
hereof to $90,000,000; and

WHEREAS, the Borrower, the Documentation Agents, the Agent, the L/C Issuer and the financial
institutions a party hereto as lenders, acknowledge that PNC Capital Markets, Inc. (“PNC Capital”),
has acted as the lead arranger for this amendment; provided however, PNC Capital is not, and shall
not be, a party to this First Amendment.

NOW THEREFORE, in consideration of the mutual premises contained herein and other good and
valuable consideration, the Borrower, the financial institutions a party hereto as lenders, the
Documentation Agents, the L/C Issuer and the Agent, with the intent to be legally bound hereby,
agree that the Original Credit Agreement shall be amended as follows:

 

 

ARTICLE I

AMENDMENTS TO ORIGINAL CREDIT AGREEMENT

Section 1.01. Amendment to the First Paragraph of the Original Credit Agreement. The
First paragraph of the Original Credit
Agreement is hereby amended such that the reference to the phrase “in its capacity as L/C Issuer
(as hereinafter defined) and” is deleted in its entirety.

Section 1.02. Amended Definitions. Section 1.1 of the Original Credit Agreement is
hereby amended such that the following definitions shall be amended and restated as set forth
below.

Agent’s Letter shall mean that certain letter dated February 7, 2002 by and between
the Agent and the Borrower which sets forth an agent’s fee to be paid by the Borrower to the Agent
for its account from time to time during the term of this Agreement, as supplemented by that
certain fee letter dated March 8, 2004 by and between the Agent and the Borrower.

Application and Agreement for Letter of Credit shall mean an application and agreement
for either a standby letter of credit or for an amendment thereto substantially in the form of
Exhibit “A” hereto, or in form as otherwise requested by an L/C Issuer from time to time.

Assignment and Assumption Agreement shall mean (i) the Master Assignment and
Assumption Agreement or (ii) an Assignment and Assumption Agreement by and among a Purchasing
Lender, a Transferor Lender and the Agent, as the Agent and on behalf of the remaining Lenders,
substantially in the form of Exhibit “B” hereto.

Base Rate shall mean a fluctuating rate of interest per annum equal to the greater of
(i) the interest rate per annum announced from time to time by the Agent at its Principal Office as
its then prime rate, which rate may not be the lowest rate then being charged commercial borrowers
by the Agent, or (ii) the Federal Funds Open Rate plus 1/2 of one percent per annum.

Documentation Agent shall mean (i) prior to the First Amendment Closing Date, each of
U.S. Bank, National City Bank of Pennsylvania and LaSalle Bank National Association in its capacity
as documentation agent hereunder, and (ii) on and after First Amendment Closing Date, National City
Bank of Pennsylvania and Comerica Bank.

Euro-Rate shall mean for any day, as used herein, for each segment of the Euro-Rate
Portion corresponding to a proposed or existing Euro Rate Interest Period, the interest rate per
annum determined by the Agent by dividing (the resulting quotient rounded upward to the nearest
1/100th of 1% per annum) (i) the rate of interest determined by the Agent in accordance with its
usual procedures (which determination shall be conclusive, absent manifest error) to be equal to
the average of the London interbank offered rates of interest per annum for U.S. Dollars quoted by
the British Bankers’ Association as set forth on Money Telerate Service (formerly Telerate) (or
appropriate successor, or, if the British Bankers’ Association or its successor ceases to provide
such quotes, a comparable replacement determined by the Agent) display page 3750 (or such other
display page on the Money Telerate Service System as may replace display page 3750), two (2)
Business Days prior to the first day of such Euro-Rate Interest Period for an amount comparable to
such Euro Rate Portion and having a borrowing date and a maturity comparable to such Euro-Rate
Interest Period by (ii) a number equal to 1.00 minus the Euro-Rate Reserve Percentage. The
Euro-Rate may also be expressed by the following formula:

                    Average of London interbank offered rates quoted by

                    British Bankers’ Association or appropriate successor

                    Euro-Rate = as shown on Money Telerate Service display page 3750

                    1.00 — Euro-Rate Reserve Percentage

The Euro Rate shall be adjusted with respect to any Euro Rate Option outstanding on the effective
date of any change in the Euro Rate Reserve Percentage as of such effective date. The Agent shall
give prompt notice to the Borrower of the Euro Rate as determined or adjusted in accordance
herewith, which determination shall be conclusive absent manifest error.

	Expiration Date shall mean May 31, 2008.

- 2 -

 

Federal Funds Effective Rate shall mean the rate per annum (based on a year of 360
days and actual days elapsed and rounded upward to the nearest 1/100 of 1%) announced by the
Federal Reserve Bank of New York (or any
successor) on such day as being weighted average of the rates on overnight federal funds
transactions arranged by federal funds brokers on the previous trading day, as computed and
announced by such Federal Reserve Bank (or any successor) in substantially the same manner as such
Federal Reserve Bank computes and announces the weighted average it refers to as the “Federal Funds
Effective Rate” as of the date of this Agreement; provided, if such Federal Reserve Bank (or its
successor) does not announce such rate on any day, the “Federal Funds Effective Rate” for such day
shall be the Federal Funds Effective Rate for the last day on which such rate was announced.

          L/C Issuer shall mean (i) prior to the First Amendment Effective Date, PNC Bank,
National Association, in its capacity as the issuer of Letters of Credit hereunder, and (ii) on and
after the First Amendment Effective Date, any Lender hereunder (in its capacity as the issuer of a
Letter of Credit pursuant to Section 2.17 hereof) that (x) the Borrower has requested to issue a
Letter of Credit hereunder and (y) the Agent has consented to as an issuer of Letters of Credit
hereunder; and the term “L/C Issuers” shall refer collectively to the Lenders which have issued
Letters of Credit hereunder. Each reference herein to the term “the L/C Issuer” is a reference to
each Lender that has issued a Letter of Credit hereunder and further refers to the Letters of
Credit hereunder issued by such Lender.

Section 1.03. Additional Definitions. Section 1.1 of the Original Credit Agreement is
hereby amended such that the following definitions shall be added thereto in the appropriate
alphabetical order:

Affirmation of Subsidiary Guaranty means that certain Affirmation of Subsidiary
Guaranty Agreement dated as of June 4, 2004, by the Subsidiary Guarantors in favor of the Agent for
the benefit of the Lenders and the L/C Issuer.

Anti-Terrorism Laws shall mean any Laws relating to terrorism or money laundering,
including Executive Order No. 134224, the USA Patriot Act, the Laws comprising or implementing the
bank Secrecy Act, and the Laws administered by the United States Treasury Department’s Office of
Foreign Asset Control (as any of the foregoing Laws may from time to time be amended, renewed,
extended, or replaced).

Blocked Person shall have the meaning assigned to such term in Section 4.27.

          Executive Order No. 13224 shall mean Executive Order No. 13224 on Terrorist Financing,
effective September 24, 2001, as the same has been, or shall hereafter be, renewed, extended,
amended or replaced.

Federal Funds Open Rate shall mean the rate per annum determined by the Agent in
accordance with its usual procedures (which determination shall be conclusive absent manifest
error) to be the “open” rate for federal funds transactions as of the opening of business for
federal funds transactions among members of the Federal Reserve System arranged by federal funds
brokers on such day, as quoted by Garvin Guybutler, any successor entity thereto, or any other
broker selected by the Agent, as set forth on the applicable Telerate display page; provided,
however, that if such day is not a Business Day, the Federal Funds Open Rate for such day shall be
the “open” rate on the immediately preceding Business Day, or if no such rate shall be quoted by a
Federal funds broker at such time, such other rate as determined by the Agent in accordance with
its usual procedures.

First Amendment means that certain First Amendment to Credit Agreement among the
Borrower, the Lenders, the Documentation Agents and the Agent dated as of June 4, 2004.

First Amendment Closing shall mean the date of execution and delivery of the First
Amendment and the other Loan Documents by the parties thereto on the First Amendment Closing Date.

First Amendment Closing Date shall mean June 4, 2004.

First Amendment Closing Fee for a Lender shall mean a dollar amount equal to 0.20%
(1/5 of 1%) or 0.25% (1/4 of 1%) (dependent on the commitment level of a Lender) times the
Revolving Credit Commitment of such Lender as of the First Amendment Effective Date.

First Amendment Effective Date means June 4, 2004.

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Master Assignment and Assumption Agreement shall mean that certain Master Assignment
and Assumption Agreement dated as of June 4, 2004 by and among the Borrower, the Pre-Effective
Lenders (as defined in such document), the Documentation Agents, the Agent and the Issuing Bank.

USA Patriot Act shall mean the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as
the same has been, or shall hereafter be, renewed, extended, amended, or replaced.

Section 1.04. Amendment of Definition of Permitted Liens. Section 1.1 of the Original
Credit Agreement is hereby amended such that the reference in clause (xi) of the definition of
Permitted Liens to the phrase “items (i) through (x) of this definition” is amended to read “items
(i) through (xi) of this definition”.

Section 1.05. Amendment to Section 2.01. The third sentence of Section 2.01 of the
Original Credit Agreement is hereby amended and restated to read as follows:

The aggregate amount of the Revolving Credit Commitments on the Closing Date is
$100,000,000; and on and as of the First Amendment Closing Date, the aggregate amount of the
Revolving Credit Commitments is reduced to $90,000,000 subject to the provisions of Section
2.21 hereof.

Section 1.06. Amendment to Section 2.03. Section 2.03 of the Original Credit
Agreement is hereby amended to add a new Subsection (e) which new Subsection shall read as follows:

          (e) First Amendment Closing Fee. The Borrower agrees to pay on the First
Amendment Effective Date, to the Agent for the account of each Lender as consideration for
such Lender’s Revolving Credit Commitment as of First Amendment Effective Date a First
Amendment Closing Fee applicable for each such Lender.

Section 1.07. Amendment to Subsection 2.08(b)(i). Subsection 2.08(b)(i) of the
Original Credit Agreement is hereby amended such that the reference in such Subsection 2.08(b)(i)
to the term “Federal Funds Effective Rate” is deleted and there is substituted therefore the term
“Federal Funds Open Rate”.

Section 1.08. Amendments to Section 2.17. (a) Section 2.17 of the Original Credit
Agreement is hereby amended and restated in its entirety as following:

          (a) At the request of the Borrower and upon notice to the Agent, the L/C Issuers (selected by
the Borrower with the consent of the Agent) will issue for the account of the Borrower, on the
terms and conditions hereinafter set forth (including without limitation Article V hereof), one or
more Letters of Credit; provided, however, no Letter of Credit shall have an expiry date later than
the earlier of twenty-four (24) months from the date of issuance or fifteen (15) days prior to the
Expiration Date; and provided, further, however, that in no event shall (i) the Stated Amount of
the Letters of Credit issued pursuant to this Section 2.17 exceed, at any one time, $25,000,000, or
(ii) the sum of aggregate outstanding principal balance of the Revolving Credit Loans, the
aggregate unpaid balance of outstanding Swingline Loans, the aggregate unpaid balance of any
Unreimbursed L/C Draws and the aggregate Stated Amount of the Letters of Credit issued by the L/C
Issuers under this Section 2.17 exceed, at any one time, the aggregate Revolving Credit Commitments
or the Borrowing Base, whichever is less.

          (b) (i) The Borrower shall pay (A) to an L/C Issuer for its own account a fronting fee equal
to 1/8 of 1% per annum (the “L/C Fronting Fee”) on the aggregate daily (computed at the opening of
business and on the basis of a year of 365 or 366 days, as the case may be, and actual days
elapsed) Stated Amount of the outstanding Letters of Credit issued by it for the period in
question, and (B) to the Agent for the ratable account of the Lenders a fee (the “Letter of Credit
Fee”) equal to the Applicable Letter of Credit Fee per annum, as determined below, on the aggregate
daily (computed at the opening of business and on the basis of a year of 365 or 366 days, as the
case may be, and actual days elapsed) Stated Amount of the outstanding Letters of Credit for the
period in question. The
Letter of Credit Fee and the L/C Fronting Fee shall be payable (A) quarterly in arrears on the
last Business Day of each Fiscal Quarter occurring during the term of this Agreement, (B) on the
Expiration Date or (C) upon

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acceleration of the Notes. Any issuance of an amendment to extend the
stated expiration date of a Letter of Credit or an amendment to increase the Stated Amount of a
Letter of Credit shall be treated as an issuance of a new Letter of Credit for purposes of
calculation of the Letter of Credit Fee and the L/C Fronting Fee due and payable hereunder. After
the occurrence of an Event of Default and during the continuation thereof, the rate at which the
Letter of Credit Fee is calculated shall be increased by two hundred (200) basis points (2%) above
the pre-default rate.

          (ii) The Borrower shall also pay to an L/C Issuer for an L/C Issuer’s own account such an L/C
Issuer’s customary documentation fees payable with respect to the Letters of Credit as such an L/C
Issuer may generally charge from time to time. Without limitation, the foregoing shall include all
charges and expenses paid or incurred by an L/C Issuer in connection with any Letter of Credit
issued by it, including without limitation: (A) correspondents’ charges, if any, (B) any and all
reasonable out-of-pocket expenses and charges of an L/C Issuer in connection with the performance,
administration, interpretation, collection and enforcement of this Agreement and any Letter of
Credit issued by it, including all reasonable legal fees and expenses, and (C) any and all
applicable reserve or similar requirements and any and all premiums, assessments, or levies imposed
upon an L/C Issuer by any Official Body.

          (iii) If by reason of (A) any change in any Law or any change in the interpretation or
application by any judicial or regulatory authority of any Law or (ii) compliance by the L/C Issuer
with any direction, request or requirement (whether or not having the force of law) of any Official
Body:

          (A) an L/C issuer shall be subject to any tax, levy, charge or withholding of any nature or to
any variation thereof or to any penalty with respect to the maintenance or fulfillment of its
obligations under this Section 2.17, whether directly or by such being imposed on or suffered by
such an L/C Issuer;

          (B) any reserve, deposit or similar requirement is or shall be applicable, imposed or modified
in respect of the Letters of Credit; or

          (C) there shall be imposed on an L/C Issuer any other condition regarding this Section 2.17 or
the Letters of Credit;

     and if the result of any of the foregoing is to directly or indirectly increase the cost to an
L/C Issuer of issuing or maintaining any Letter of Credit, or to reduce the amount receivable in
respect thereof by such an L/C Issuer, then and in any such case such an L/C Issuer may, at any
time after the additional cost is incurred or the amount receivable is reduced, notify the Borrower
and the Agent, and the Borrower shall pay on demand such amounts as such an L/C Issuer may specify
to be necessary to compensate such an L/C Issuer for such additional cost or reduced receipt,
together with interest on such amount from the date of the notice of such event which results in
such increased cost or reduction in amount receivable until payment in full thereof at a rate equal
at all times to the Base Rate. The determination by an L/C Issuer of any amount due pursuant to
this Subsection 2.17(b)(iii) as set forth in a certificate setting forth the calculation thereof,
shall, in the absence of manifest error, be final and conclusive and binding on all of the parties
hereto.

          For purposes of this Agreement, the term “Applicable Letter of Credit Fee” shall mean the rate
per annum set forth in the chart below which corresponds to the range of ratios in which the
Borrower’s Consolidated Total Indebtedness to Consolidated EBITDA Ratio as at the end of the
preceding Fiscal Quarter falls:

	 	 	 
	Consolidated Total Indebtedness	 	Applicable Letter of
	to Consolidated EBITDA Ratio	 	Credit Fee
	 
	 	 
	Less than or equal to 1.5 to 1.0
	 	1.00%
	Greater than 1.5 to 1.0 but less than or equal
to 2.0 to 1.0
	 	1.25%
	Greater than 2.0 to 1.0 but less than or equal
to 2.5 to 1.0
	 	1.75%
	Greater than 2.5 to 1.0
	 	2.25%

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     All adjustments shall be determined as of the date the Borrower’s quarterly financial
statements and Compliance Certificate are required to be delivered pursuant to items (i) and (iii)
of Section 6.02. The foregoing notwithstanding, the Applicable Letter of Credit Fee from the
Closing Date to and including the March 31, 2002 Delivery Date shall be 1.00%.

          (c) Immediately upon the issuance of each Letter of Credit and each increase in the Stated
Amount thereof, each Lender hereby agrees to irrevocably purchase and shall be deemed to have
irrevocably purchased from the applicable L/C Issuer an undivided, full risk, non-recourse
participation in such Letter of Credit and drawings thereunder in an amount equal to such Lender’s
Ratable Share of the maximum amount which is or at any time may become available to be drawn
thereunder. In the event that the L/C Issuer is required for any reason to refund or repay to the
Borrower, any guarantor or any other Person all or any portion of any amount remitted to an L/C
Issuer pursuant to this Agreement, the Lenders shall promptly remit to the applicable L/C Issuer,
upon three (3) Business Days’ demand therefor, their respective Ratable Shares of the amount which
is so refunded or repaid.

          (d) In the event any restrictions are imposed upon any of the L/C Issuers or any of the
Lenders by any Law of any Official Body having jurisdiction over the banking activities of the L/C
Issuers or any Lender which would prevent any L/C Issuer from issuing the Letters of Credit or
amending the Letters of Credit or would prevent any Lender from honoring its obligations under this
Section 2.17, the commitment of such L/C Issuer to issue the Letters of Credit or enter into any
amendment with respect thereto shall be immediately suspended. If any Lender believes any such
restriction would prevent such Lender from honoring its obligations under this Section 2.17, it
shall promptly notify the Agent. The Agent shall promptly notify the Borrower, the L/C Issuers and
the other Lenders of the existence and nature of (i) any restriction which would cause the
suspension of the commitment of any L/C Issuer to issue Letters of Credit or to enter into
amendments with respect thereto and (ii) any restriction which would prevent any Lender from
honoring its obligations under this Section 2.17. The Borrower will thereupon undertake reasonable
efforts to obtain the cancellation of all affected outstanding Letters of Credit; provided,
however, that the refusal of any beneficiary of an affected Letter of Credit to surrender such
Letter of Credit will not be an Event of Default hereunder, provided that the Borrower shall
undertake good faith efforts to obtain substitute letters of credit for the then existing and
outstanding Letters of Credit. Nothing contained in this Section 2.17 shall be deemed a termination
of the Revolving Credit Commitments and, in the event of a suspension of the commitment of any L/C
Issuer to issue Letters of Credit as set forth above, the Borrower may continue to borrow under the
Revolving Credit Commitments provided the requirements of Section 5.02 are complied with.

          (e) When the Borrower desires the issuance of a Letter of Credit, the Borrower shall deliver a
duly completed Application and Agreement for Letter of Credit to the applicable L/C Issuer, with a
copy to the Agent, no later than 11:00 A.M. (Pittsburgh, Pennsylvania time) at least three (3)
Business Days, or such shorter period as may be agreed to by the applicable L/C Issuer, in advance
of the proposed date of issuance. Upon satisfaction of the conditions set forth in Section 5.01
and, if applicable, Section 5.02, the applicable L/C Issuer shall be obligated to issue the Letter
of Credit and shall notify the Agent and each Lender of such issuance. In determining whether to
pay under a Letter of Credit, the applicable L/C Issuer shall be responsible only to determine that
the documents and certificates required to be delivered under the Letter of Credit have been
delivered and that they comply on their face with the requirements of the Letter of Credit.

          (f) In the event of any request for drawing under a Letter of Credit by the beneficiary
thereof, the applicable L/C Issuer shall immediately notify the Borrower and the Agent, and the
Borrower shall reimburse, or cause the reimbursement of, the applicable L/C Issuer on demand as set
forth in the applicable Application and Agreement for
Letter of Credit in an amount in same day funds equal to the amount of such drawing; provided,
however, that anything contained in this Agreement to the contrary notwithstanding, unless the
Borrower shall have notified the Agent and the applicable L/C Issuer prior to such time that the
Borrower intends to reimburse the applicable L/C Issuer for all or a portion of the amount of such
drawing with funds other than the proceeds of Revolving Credit Loans, the Borrower shall be deemed
to have given a Loan Request to the Agent requesting the Lenders to make Revolving Credit Loans on
the first Business Day immediately following the date on which such drawing is honored in an
aggregate amount equal to the excess of the amount of such drawing over the amount received by the
applicable L/C Issuer from such other funds in reimbursement thereof (the “Unreimbursed L/C Draw”),
plus accrued interest on such amount at the rate set forth in Subsection 2.08. Any such Revolving
Credit Loan shall be deemed advanced to the Borrower. If the Borrower shall be deemed to have given
a Loan Request, then, subject to satisfaction or waiver of the conditions specified in Section
5.02, the Lenders shall, all as set forth in Section 2.17(g)

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hereof, on the first Business Day
immediately following the date of such drawing, make Revolving Credit Loans in the aggregate amount
of the Unreimbursed L/C Draw plus accrued interest on such amount at the applicable rate set forth
in Section 2.08. The proceeds of any such Revolving Credit Loans shall be applied directly by the
Agent upon receipt from the Lenders to reimburse the applicable L/C Issuer for the Unreimbursed L/C
Draw plus accrued interest on such amount. The foregoing shall not limit or impair the obligation
of the Borrower to reimburse the applicable L/C Issuer on demand.

          (g) In the event that the Borrower shall fail to reimburse the applicable L/C Issuer on demand
as provided in the applicable Application and Agreement for Letter of Credit and Section 2.17(f)
above in an amount equal to the amount of any drawing honored by the applicable L/C Issuer under a
Letter of Credit plus accrued interest, the applicable L/C Issuer shall promptly notify the Agent
and each Lender of the Unreimbursed L/C Draw plus accrued interest on such amount of such drawing
and of such Lender’s respective participation therein. Each Lender shall make available to the
applicable L/C Issuer an amount equal to its respective participation in same day funds, at the
office of the applicable L/C Issuer specified in such notice, not later than 1:00 P.M. (Pittsburgh,
Pennsylvania time) on the Business Day after the date specified in such notice by the applicable
L/C Issuer. In the event that any Lender fails to make available to the applicable L/C Issuer the
amount of such Lender’s participation in such Letter of Credit as provided in this Section 2.17(g),
the applicable L/C Issuer shall be entitled to recover such amount on demand from such Lender
together with interest at the Federal Funds Effective Rate for three (3) Business Days and
thereafter at the Base Rate. Nothing in this Section 2.17(g) shall be deemed to prejudice the right
of any Lender to recover its Ratable Share of the Unreimbursed L/C Draw from the applicable L/C
Issuer pursuant to this Section 2.17(g) in the event that it is determined by a court of competent
jurisdiction that payment with respect to a Letter of Credit by the applicable L/C Issuer
constituted gross negligence or willful misconduct on the part of the applicable L/C Issuer. The
applicable L/C Issuer shall distribute to each Lender which has paid all amounts payable by it
under this Section 2.17(g) with respect to a Letter of Credit such other Lender’s Ratable Share of
all payments received by the applicable L/C Issuer from the Borrower in reimbursement of drawing
honored by the applicable L/C Issuer under the Letter of Credit when such payments are received.

          (h) The obligations of the Borrower under this Agreement to reimburse the applicable L/C
Issuer for all drawings upon the Letters of Credit shall be absolute, unconditional and
irrevocable, and shall not be subject to any right of set-off or counterclaim and shall be paid or
performed strictly in accordance with the terms of this Agreement, under all circumstances
whatsoever, including the following circumstances:

               (i) any lack of validity or enforceability of this Agreement, any Letter of Credit or
any of the Loan Documents;

               (ii) any amendment or waiver of any provision of all or any of the Loan Documents;

               (iii) the existence of any claim, set-off, defense or other rights which the Borrower
may have at any time against any beneficiary or any transferee of any Letter of Credit (or
any Persons for whom any such beneficiary or any such transferee may be acting), an L/C
Issuer, the Agent or any Lender (other than the defense of payment to an L/C Issuer in
accordance with the terms of this Agreement) or any other Person, whether in connection with
this Agreement, the Loan Documents or any transaction contemplated hereby or thereby or any
unrelated transaction;

               (iv) any draft, demand, certificate, statement or document presented under any Letter
of Credit, appearing on its face to be valid and sufficient, but proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect whatsoever;

               (v) payment by an L/C Issuer under any Letter of Credit against presentation of any
document which does not comply with the terms of the Letter of Credit, provided that such
payment shall not have constituted gross negligence or willful misconduct of the applicable
L/C Issuer;

               (vi) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, not resulting from gross negligence or willful misconduct of the L/C Issuer;
and

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               (vii) the fact that a Default or Event of Default shall have occurred and be
continuing.

          (i) This Agreement is intended to supplement each Application and Agreement for Letter of
Credit executed by the Borrower and delivered to the L/C Issuer. Whenever possible this Agreement
is to be construed as consistent with each Application and Agreement for Letter of Credit but, to
the extent that the provisions of this Agreement and each Application and Agreement for Letter of
Credit conflict, the terms of this Agreement shall control.

          (j) Existing Letters of Credit. As of the Closing Date, each of the Existing Letters
of Credit issued by PNC Bank, National Association, as an L/C Issuer, and outstanding on such date
for the account of the Borrower and identified on Schedule 2.17(j) shall be deemed to be
Letters of Credit issued hereunder and shall be subject to all of the terms and provisions of this
Agreement. The Borrower is hereby deemed to be the account party with respect to each such Letter
of Credit for all purposes thereunder and hereunder. Each Lender agrees that its obligations with
respect to Letters of Credit pursuant to this Agreement shall include such Existing Letters of
Credit. With respect to each such Existing Letter of Credit, for the period commencing on the
Closing Date, the Borrower shall pay all fees and commissions set forth in this Agreement at the
times and in the manner herein set forth. The obligations of the Borrower under each application
for letter of credit and credit or reimbursement agreement (together with any related amendments)
executed with respect to the Existing Letters of Credit are hereby expressly assumed by the
Borrower and each such application for letter of credit and credit or reimbursement agreement, as
amended, is hereby deemed an Application and Agreement for Letter of Credit executed and delivered
hereunder. Such existing credit or reimbursement agreements shall be superseded in their entirety
by this Agreement which shall apply to Existing Letters of Credit as well as all Letters of Credit
issued hereunder on and after the Closing Date.

          (k) Obligations Absolute. Notwithstanding any other provision of this Agreement, each
Lender hereby agrees that its obligation to participate in each Letter of Credit issued in
accordance herewith and its obligation to make the payments to be made by it under this Section
2.17 is absolute, irrevocable and unconditional and shall not be affected by any event, condition
or circumstance whatever. The failure of any Lender to make any such payment shall not relieve any
other Lender of its funding obligation hereunder on the date due, but no Lender shall be
responsible for the failure of any other Lender to meet its funding obligations hereunder.

          (l) In addition to amounts payable as elsewhere provided in this Section 2.17, the Borrower
hereby agrees to protect, indemnify, pay and save the Agent and each L/C Issuer harmless from and
against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses
(including reasonable attorneys’ fees) which the Agent or any L/C Issuer may incur or be subject to
as a consequence, direct or indirect, of (i) the issuance of the Letters of Credit or any amendment
thereto, other than as a result of the gross negligence or willful misconduct of the Agent or the
applicable L/C Issuer as determined by a court of competent jurisdiction, (ii) the failure of the
applicable L/C Issuer to honor a draw under any Letter of Credit if the applicable L/C Issuer in
good faith and upon advice of counsel believes that it is prohibited from making such payment as a
result of any requirement of Law or of any Official Body, or (iii) any material breach by the
Borrower of any representation, warranty, covenant, term or condition in, or the occurrence of any
default under, any document related to the issuance or any amendment of the Letters of Credit. If
any proceeding shall be brought or threatened against the Agent or an L/C Issuer by reason of or in
connection with any event described in clauses (i) through (iii) above, the Agent shall promptly
notify the Borrower in writing, and the Borrower shall assume the defense thereof, including the
employment of counsel and payment of all costs of litigation. Notwithstanding the preceding
sentence, the Agent and the applicable L/C Issuer
shall have the right to employ their own counsel and to determine its own defense of such
action in any such case, but the fees and expenses of such counsel shall be at the expense of the
Agent or an L/C Issuer, as the case may be, unless (x) the employment of such counsel shall have
been authorized in writing by the Borrower, (y) the Borrower, after the aforementioned notice of
the action, shall not have employed counsel to have charge of such defense or (z) if the position
of the Borrower is adverse or contrary to the position advocated by the Agent or the applicable L/C
Issuer, as the case may be. In each case described in clauses (x), (y) and (z) immediately above
the reasonable fees and expenses of counsel for the Agent or the applicable L/C Issuer, as the case
may be shall be borne by the Borrower. The Borrower shall not be liable for any settlement of any
such action affected without its consent.

          (m) Each L/C Issuer is hereby expressly authorized and directed to honor any request for
payment which is made under and in compliance with the terms of any Letter of Credit without regard
to, and without any duty on an

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L/C Issuer’s part to inquire into, the existence of any disputes or
controversies between the Borrower, the beneficiary of any Letter of Credit or any other Person, or
the respective rights, duties or liabilities of any of them or whether any facts or occurrences
represented in any of the documents presented under any applicable Letter of Credit are true or
correct. Furthermore, the Borrower fully understands and agrees that an L/C Issuer’s sole
obligation to the Borrower shall be limited to honoring requests for payment made under and in
compliance with the terms of any Letter of Credit, the Application and Agreement for Letter of
Credit therefor and this Agreement and the an L/C Issuer’s obligation remains so limited even if
the applicable L/C Issuer may have assisted the Borrower in the preparation of the wording of any
Letter of Credit or any documents required to be presented thereunder or that the applicable L/C
Issuer may otherwise be aware of the underlying transaction giving rise to any Letter of Credit and
this Agreement.

          (n) As between the Borrower and an L/C Issuer, the Borrower assumes all risks of the acts and
omissions of, or misuse of the applicable Letters of Credit by, the beneficiaries of the applicable
Letters of Credit. In furtherance and not in limitation of the foregoing, no L/C Issuer shall be
responsible: (i) for the form, validity, sufficiency, accuracy, genuineness or legal effect of any
document submitted by any party in connection with the application for or the issuance or amendment
of the Letters of Credit, even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged; (ii) for the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign the Letters of Credit or
the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason; (iii) for failure of a beneficiary of a Letter of Credit to
comply fully with conditions required in order to draw upon such Letter of Credit; (iv) for errors,
omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable,
telegraph, telecopy, telex or otherwise, whether or not they be in cipher; (v) for errors in
interpretation of technical terms; (vi) for any loss or delay in the transmission or otherwise of
any document required in order to make a draw under the Letters of Credit or of the proceeds
thereof; (vii) for the misapplication by a beneficiary of any Letter of Credit of the proceeds of
any drawing under such Letter of Credit; (viii) for any consequences arising from causes beyond the
control of an L/C Issuer, including, without limitation, any Law; and (ix) for any other
circumstances whatsoever in making or failing to make payment under a Letter of Credit; except that
the Borrower shall have a claim against an L/C Issuer, and an L/C Issuer shall be liable to the
Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential,
damages suffered by the Borrower by a court of competent jurisdiction to be the result of (i) an
L/C Issuer’s willful misconduct or gross negligence in determining whether documents presented
under an applicable Letter of Credit comply with the terms of such Letter of Credit, (ii) an L/C
Issuer’s willful misconduct or gross negligence in paying a draw under the applicable Letter of
Credit to any Person other than the beneficiary of such Letter of Credit or its lawful successor,
representative or assign (or as otherwise directed in writing by the beneficiary of such Letter of
Credit) or (iii) an L/C Issuer’s willful failure to pay under an applicable Letter of Credit after
the presentation to it by the beneficiary of such Letter of Credit or its lawful successor,
representative or assign of a sight draft and certificate or other documents strictly complying
with the terms and conditions of such Letter of Credit, unless such an L/C Issuer in good faith and
upon advice of counsel believes that it is prohibited by law or other legal authority from making
such payment. None of the above shall affect, impair, or prevent the vesting of any of an L/C
Issuer’s rights or powers hereunder.

          (o) Except for an L/C Issuer’s obligations to issue Letters of Credit hereunder and its
obligations under such Letters of Credit, an L/C Issuer shall have no liability to the Borrower
from a reduction of such an L/C Issuer’s credit rating or any deterioration in its financial
condition.

          (p) The Borrower shall bear and pay all reasonable expenses of every kind (including all
reasonable attorneys’ fees) of the enforcement of any of an L/C Issuer’s rights under this
Agreement or the Letters of Credit, or of any claim or demand by an L/C Issuer against the
Borrower, or of any actual or attempted sale, exchange, enforcement, collection, maintenance,
retention, insurance, compromise, settlement, release, delivery on trust receipt, or other security
agreement, or delivery of any such security, and of the receipt of proceeds thereof, and will repay
to each such L/C Issuer any such expenses incurred by such an L/C Issuer.

          (q) In furtherance and extension and not in limitation of the specific provisions hereinabove
set forth, any action taken or omitted by an L/C Issuer under or in connection with the applicable
Letters of Credit or the related sight drafts or certificates or documents, if taken or omitted in
good faith, shall not put such an L/C Issuer under any resulting liability to the Borrower.

- 9 -

 

          (r) Whenever appropriate to prevent unjust enrichment and to the end that the Borrower shall
bear substantially all of the risks relative to any Letter of Credit and the underlying
transactions, the applicable L/C Issuer shall be subrogated (for purposes of defending against the
Borrower’s claims and proceeding against others to the extent of the applicable L/C Issuer’s
liability to the Borrower) to the Borrower’s rights against any Person who may be liable to the
Borrower on any underlying transaction, to the rights of any holder in due course or Person with
similar status against the Borrower, and to the rights of the beneficiary or its assignee or person
with similar status against the Borrower.

(s) Except to the extent inconsistent with the specific provisions hereof, this
Agreement, each Letter of Credit hereunder and all transactions in connection therewith
shall be interpreted, construed and enforced according to: (i) as determined by the L/C
Issuer, either (A) the Uniform Customs and Practice for Documentary Credits (1993 Revision),
International Chamber of Commerce Publication No. 500, or (B) the International Standby
Practices 1998, International Chamber of Commerce Publication No. 590, and in each case and
any amendments or revisions thereof, which in each case shall supersede inconsistent
provisions of applicable law to the extent not prohibited by applicable law, and (ii) the
laws of the State of the office in which the L/C Issuer has recorded the issuance of the
Letter of Credit in question, including, without limitation, the Uniform Commercial Code as
adopted in such State, and excluding conflict of laws rules.

Section 1.09. Amendment to Article II. Article II of the Original Credit Agreement is
hereby amended to add new Section 2.21, which new Section shall read as follows:

2.21 Increasing the Revolving Credit Commitments If at any time after the
First Amendment Closing Date, and so long as no Event of Default has occurred and is
continuing, the Borrower desires to increase the Revolving Credit Commitments, the Borrower
shall notify the Agent, who will promptly notify each Lender thereof, provided that any such
increase shall be in a minimum of $5,000,000 and the aggregate of all such increases shall
not exceed $10,000,000. The existing Lenders shall have the right at any time within thirty
(30) days following such notice to increase their respective Revolving Credit Commitments so
as to provide such additional Revolving Credit Commitment pro-rata in accordance with the
Ratable Share of each, and any portion of such requested increase which is not provided by
any such existing Lender shall be available to the other existing Lenders pro-rata in
accordance with their Ratable Share, and thereafter, to the extent not provided by existing
Lenders, to any additional lending institution or institutions proposed by the Borrower and
which is approved by the Agent (which approval will not be unreasonably withheld) and which
becomes a party to this Agreement pursuant to documentation reasonably acceptable to the
Agent and prepared at the Borrower’s expense, which documentation may be executed by the
Borrower and the Agent (as agent for the Lenders) without further consent or action of the
Lenders, such consent hereby deemed to be irrevocably given to the Agent by the Lenders by
the execution of the First Amendment; provided, however, that the Borrower
shall have the right to have all of such increase provided by such approved additional
lending institution or institutions if all the existing Lenders decline to increase their
Revolving Credit Commitments to accommodate any such requested increase. In the event of
any such increase in the aggregate Revolving Credit Commitments and in the Revolving Credit
Commitment of any Lender effected pursuant to the terms of this Section 2.21, new Revolving
Credit Notes shall, to the extent deemed reasonably necessary or appropriate by the Agent,
be executed and delivered by the Borrower and, to the extent deemed appropriate by the
Agent, the surrender and cancellation of existing Revolving Credit
Note(s); and the Borrower shall execute and deliver such additional documentation setting
forth the new commitments and commitment percentages as the Agent shall reasonably request
(which documentation may be executed by the Borrower and the Agent (as agent for the
Lenders) without further consent or action of the Lenders, such consent herein is deemed to
be irrevocably given to the Agent by the Lenders).

Section 1.10. Amendment to Article IV. Article IV of the Original Credit Agreement is
hereby amended to add new Section 4.27 which new Section shall read as follows:

- 10 -

 

4.27. Anti-Terrorism Laws.

(a) General.

None of the Loan Parties or any Affiliate of any Loan Party, is in violation of any
Anti-Terrorism Law or engages in or conspires to engage in any transaction that evades or
avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the
prohibitions set forth in any Anti-Terrorism Law.

(b) Executive Order No. 13224.

None of the Loan Parties, or any Affiliate of any Loan Party, or their respective
agents acting or benefiting in any capacity in connection with the Loans, Letters of Credit
or other transactions hereunder, is any of the following (each a “Blocked Person”):

(i) a Person that is listed in the annex to, or is otherwise subject to the
provisions of, Executive Order No. 13224;

(ii) a Person owned or controlled by, or acting for or on behalf of, any Person
that is listed in the annex to, or is otherwise subject to the provisions of,
Executive Order No. 13224;

(iii) a Person or entity with which any Lender is prohibited from dealing or
otherwise engaging in any transaction by any Anti-Terrorism Law;

(iv) a Person or entity that commits, threatens or conspires to commit or supports
“terrorism” as defined in Executive Order No. 13224;

(v) a Person or entity that is named as a “specially designated national” on the
most current list published by the U.S. Treasury Department Office of Foreign Asset
Control at its official website or any replacement website or other replacement
official publication of such list, or

(vi) a person or entity who is affiliated or associated with a person or entity
listed above.

No Loan Party or to the knowledge of any Loan Party, any of its agents acting in any
capacity in connection with the Loans, Letters of Credit or other transactions hereunder (i)
conducts any business or engages in making or receiving any contribution of funds, goods or
services to or for the benefit of any Blocked Person, or (ii) deals in, or otherwise engages
in any transaction relating to, any property or interests in property blocked pursuant to
Executive Order No. 13224.

Section 1.11. Amendment to Section 6.02. Section 6.02 of the Original Credit
Agreement is hereby amended by inserting the following at the end of Subsection 6.02(iv):

“provided, however, that no Borrowing Base Certificate shall be required in the event that
there are no Loans outstanding and the outstanding Stated Amount (together with all
Unreimbursed L/C Draws, if any) of all Letters of Credit issued hereunder is less than or
equal to $10,000,000.”

Section 1.12. Amendment to Section 7.12. Subsection 7.12(i) of the Original Credit
Agreement is hereby amended and restated to read as follows:

(i) RESERVED

Section 1.13. Amendment to Section 9.01. Section 9.01 of the Original Credit
Agreement is hereby amended and restated to read as follows:

9.01. Appointment and Grant of Authority. Each of the Lenders and the L/C
Issuer hereby appoints PNC Bank, National Association, and PNC Bank, National Association,
hereby agrees to act, as the Agent under this Agreement and the other Loan Documents. On the
Closing Date, each of the Lenders and the L/C

- 11 -

 

Issuer hereby appoints each of US Bank,
National City Bank of Pennsylvania and LaSalle Bank National Association, as Documentation
Agents hereunder. On the First Amendment Closing Date, each of US Bank and LaSalle Bank
National Association has ceased as Documentation Agent hereunder. On the First Amendment
Closing Date, each of the Lenders and the L/C Issuer hereby appoints each of National City
Bank of Pennsylvania and Comerica Bank, as Documentation Agents hereunder. The Agent shall
have and may exercise such powers under this Agreement and the other Loan Documents as are
specifically delegated to it by the terms hereof or thereof, together with such other powers
as are incidental thereto. Without limiting the foregoing, the Agent, on behalf of the
Lenders and the L/C Issuer, is authorized to execute all of the Loan Documents (other than
this Agreement) and to accept all of the Loan Documents and all other agreements, documents
or instruments reasonably required to carry out the intent of the parties to this Agreement.

Section 1.14 Amendment to Section 9.08. Section 9.08 of the Original Credit Agreement
is hereby amended such that the reference in such Section 9.08 to the phrase “and as to PNC Bank”
is deleted and there is substituted therefore the phrase “and as to any Lender in the capacity as
L/C Issuer.”

Section 1.15. Amendment to Section 9.17. Section 9.17 of the Original Credit
Agreement is hereby amended such that the reference in such Section 9.17 to the term “Syndication
Agents” is deleted and there is substituted therefore the term “Documentation Agents”.

Section 1.16. Amendment to Article IX. Article IX of the Original Credit Agreement is
hereby amended to add new Section 9.18 which new Section shall read as follows:

9.12 No Reliance on Agent’s Customer Identification Program.

               Each Lender acknowledges and agrees that neither such Lender, nor any of its
Affiliates, participants or assignees, may rely on the Agent to carry out such Lender’s,
Affiliate’s, participant’s or assignee’s customer identification program, or other
obligations required or imposed under or pursuant to the USA Patriot Act or the regulations
thereunder, including the regulations contained in 31 CFR 103.121 (as hereafter amended or
replaced, the “CIP Regulations”), or any other Anti-Terrorism Law, including any programs
involving any of the following items relating to or in connection with any of the Loan
Parties, their Affiliates or their agents, the Loan Documents or the transactions hereunder
or contemplated hereby: (1) any identity verification procedures, (2) any recordkeeping, (3)
comparisons with government lists, (4) customer notices or (5) other procedures required
under the CIP Regulations or such other Laws.

Section 1.17. Amendment to Section 10.01. Section 10.01 of the Original Credit
Agreement is hereby amended and restated to read as follows:

               10.01. Amendments and Waivers. Except as otherwise expressly provided in
Section 2.21, the Required Lenders, or the Agent with the consent in writing of the Required
Lenders, and the Borrower may, subject to the provisions of this Section 10.01, from time to
time enter into written supplemental agreements to this Agreement and the other Loan
Documents for the purpose of adding or deleting any provisions or otherwise changing,
varying or waiving in any manner the rights of the Lenders, the Agent or the obligor
thereunder or the conditions, provisions or terms thereof or waiving any Event of Default
thereunder or consenting to an action of any of the Borrower or any of its Subsidiaries, but
only to the extent specified in such written agreements; provided, however, that no such
supplemental agreement shall, without the consent of all the Lenders:

                    (i) waive an Event of Default by the Borrower in any payment of principal, interest,
Fees or other amounts due hereunder and under any of the other Loan Documents, or otherwise
postpone any schedule payment date of any of the foregoing;

                    (ii) reduce the interest rate relating to the Revolving Credit Loans or change the
definition of the terms Base Rate, Prime Rate, Applicable Euro-Rate Margin, Euro-Rate,
Euro-Rate Interest

- 12 -

 

Period, Euro-Rate Reserve Percentage, Federal Funds Effective Rate or
Federal Funds Open Rate so as to decrease the interest rate relating to the Revolving Credit
Loans;

                    (iii) change the Expiration Date;

                    (iv) reduce any Fee;

                    (v) change the definition of the term Required Lenders; or

                    (vi) amend or waive the provisions of this Section 10.01.

provided, further, however, that no such supplemental agreement hereto
(including any supplemental agreement executed pursuant to Section 2.21 hereof) shall
increase any Lender’s Revolving Credit Commitment without the consent of such Lender.

               Any such supplemental agreement shall apply equally to each of the Lenders and the L/C
Issuer and shall be binding upon the Borrower, the Lenders, the Agent and the Documentation
Agents, all future holders of the Notes and all Participants. In the case of any waiver, the
Borrower, the Lenders, the L/C Issuer, the Agent and the Documentation Agents shall be
restored to former positions and rights, and any Event of Default waived shall be deemed to
be cured and not continuing, but no such waiver shall extend to any subsequent or other
Event of Default, or impair any right consequent thereon.

Section 1.18. Amendment to Section 10.04. Section 10.04 of the Original Credit
Agreement is hereby amended such that each reference therein to “Lisa Pierce” is deleted and there
is substituted therefore “Rini Davis”.

Section 1.19. Amendment to Section 10.11. Section 10.11 of the Original Credit
Agreement is hereby amended such that the phrase therein “Sections 6.13, 10.02 and 10.03” is
deleted and there is substituted therefore the phrase “Sections 6.13, 10.02, 10.03 and 10.09”.

Section 1.20. Amendment to Article X. Article X of the Original Credit Agreement is
hereby amended to add new Section 10.19 which new Section shall read as follows:

               10.19 Anti-Terrorism Laws.

                    The Loan Parties and their respective Affiliates and agents shall not (i) conduct any
business or engage in any transaction or dealing with any Blocked Person, including the
making or receiving any contribution of funds, goods or services to or for the benefit of
any Blocked Person, (ii) deal in, or otherwise engage in any transaction relating to, any
property or interests in property blocked pursuant to Executive Order No. 13224; or (iii)
engage in or conspire to engage in any transaction that evades or avoids, or has the purpose
of evading or avoiding, or attempts to violate, any of the prohibitions set forth in
Executive Order No. 13224, the USA Patriot Act or any other Anti-Terrorism Law. The
Borrower shall deliver to Lenders any certification or other evidence requested from time to
time by any Lender in its sole discretion, confirming Borrower’s compliance with this
Section 10.19.

Section 1.21. Schedules. The Original Credit Agreement is hereby amended such that
the Schedule 1.01(a) attached thereto is deleted and there is substituted therefore Revised
Schedule 1.01(a) attached hereto.

Section 1.22. No Other Amendments. The amendments to the Original Credit Agreement set
forth in Sections 1.01 through 1.21 inclusive above do not either implicitly or explicitly alter or
amend, except as expressly provided in this First Amendment, the provisions of the Original Credit
Agreement. The amendments set forth in Sections 1.01 through 1.21 hereof do not waive, now or in
the future, compliance with any other covenant, term or condition to be performed or complied with
nor do they impair any rights or remedies of the Lenders or the Agent under the Original Credit
Agreement with respect to any such violation. Nothing in this First Amendment shall be deemed or
construed to be a release of, or a limitation upon, the Lenders’, Documentation Agents’ or the
Agent’s exercise of any of their respective rights and remedies under the Original Credit Agreement
and the other Loan Documents, whether

- 13 -

 

arising as a consequence of any Events of Default which may
now exist or otherwise, and all such rights and remedies are hereby expressly reserved.

ARTICLE II

BORROWER’S SUPPLEMENTAL REPRESENTATIONS

Section 2.01. Incorporation by Reference. As an inducement to the Lenders, the
Documentation Agents and the Agent to enter into this First Amendment, (i) the Borrower hereby
repeats and remakes herein, for the benefit of the Lenders, the representations and warranties made
by the Borrower in Sections 4.01 through 4.26, inclusive, of the Original Credit Agreement, as
amended hereby, except that for purposes hereof such representations and warranties shall be deemed
to extend to and cover this First Amendment and are remade as of the First Amendment Effective
Date, and (ii) the Borrower hereby represents and warrants that on and as the First Amendment
Effective Date that no Default or Event of Default has occurred and is continuing.

Section 2.02. Corporate Authority. As an inducement to the Lenders, the Documentation
Agents and the Agent to enter into this First Amendment, the Borrower hereby represents and
warrants that the Borrower is duly authorized to execute and deliver this First Amendment; all
necessary corporate action to authorize the execution and delivery of this First Amendment has been
properly taken; and it is and will continue to be duly authorized to borrow under the Original
Credit Agreement, as amended hereby, and to perform all of the other terms and provisions of this
First Amendment and the Original Credit Agreement, as amended hereby.

Section 2.03. Capitalization and Ownership. As of December 31, 2003, the authorized
capital stock of the Borrower consists of 30,000,000 shares of common stock of which 20,730,604
shares were issued and outstanding, and 5,000,000 shares of preferred stock, of which no shares
were issued and outstanding. All of the capital stock of the Borrower has been validly issued and
is fully paid and nonassessable.

Section 2.04. Validity of this First Amendment. As an inducement to the Lenders, the
Documentation Agents and the Agent to enter into this First Amendment, the Borrower hereby
represents and warrants that the execution and delivery of this First Amendment does not, and the
borrowings contemplated by the Original Credit Agreement, as amended hereby, and the performance by
the Borrower of its obligations under this First Amendment and the Original Credit Agreement, as
amended hereby, will not contravene any provision of law, of the Borrower’s Certificate of
Incorporation or Bylaws, or the provisions of any agreement to which the Borrower is a party or by
which the Borrower is bound; this First Amendment constitutes the legal, valid and binding
obligation of the Borrower enforceable in accordance with its terms.

Section 2.05. Financial Statements.

(i) Financial Statements. The Borrower has delivered to the Agent the consolidated
annual audited financial statements of the Borrower and its Subsidiaries for the Fiscal Year ended
December 31, 2003. All such financial statements are complete and correct in all material respects
and fairly present the consolidated financial condition of
the Borrower and its Subsidiaries in all material respects and the results of their operations as
of the dates and for the periods referred to, and have been prepared in accordance with GAAP
throughout the period included.

(ii) Accuracy of Financial Statements. The Borrower and its Subsidiaries have no
liabilities, contingent or otherwise, that are not disclosed in the financial statements referred
to in clause (i) above and that would be required to be disclosed in accordance with GAAP, except
for those incurred since the date of such financial statements in the ordinary course of business.

Section 2.06. Absence of Litigation. Except as set forth in the Forms 10-K, 10-Q, or
8-K most recently filed by the Borrower as of the First Amendment Effective Date, respectively,
there are no actions, suits, investigations, litigation or governmental proceedings pending or, to
the Borrower’s knowledge, threatened against the Borrower or any Consolidated Subsidiary or any of
their respective properties, which would have a Material Adverse Effect on the Borrower and the
Consolidated Subsidiaries taken as a whole, or which purport to affect the legality, validity or
enforceability of this First Amendment, the Agreement or the Notes.

- 14 -

 

Section 2.07. No Material Adverse Change. No event has occurred since December 31,
2003, and is continuing which has had or would reasonably be expected to have a Material Adverse
Change.

ARTICLE III

CONDITIONS PRECEDENT

Section 3.01. Conditions Precedent. Each of the following events or conditions shall
be a condition precedent to the effectiveness of this First Amendment.

(i) The Agent shall have received duly executed counterpart originals of this First Amendment
executed by the Borrower, the Lenders, the Documentation Agents and the Agent;

(ii) The Agent shall have received duly executed counterpart originals of the Affirmation of
Subsidiary Guaranty;

(iii) The Agent shall have received fully executed original Subsidiary Guaranties from each of
(i) RTI Commercial Products, Inc., (ii) RTI Fabrication and Distribution, Inc. and (iii) RTI-St.
Louis, Inc.;

(iv) The Borrower shall deliver to the Agent a certificate of the secretary or assistant
secretary of the Borrower dated the First Amendment Closing Date certifying:

(A) the corporate authority of the Borrower to execute, deliver and perform under this
First Amendment;

(B) the names of the persons authorized on behalf of the Borrower to sign this First
Amendment, together with the true signatures of such persons; and

(C) that the articles of incorporation and bylaws of the Borrower delivered to the
Agent on the Closing Date remain in full force and effect and have not been modified;

(D) audited, consolidated financial statements for Fiscal Year ending December 31, 2003
as required by the Original Credit Agreement; and

(E) copies of projected financial statements for the three (3) year period following
the First Amendment Closing Date;

(v) The Borrower shall deliver to the Agent a certificate of the secretary or assistant
secretary of each Subsidiary Guarantor dated the First Amendment Closing Date certifying:

(A) the corporate authority of each Subsidiary Guarantor to execute, deliver and
perform under the Affirmation of Subsidiary Guaranty;

(B) the names of the persons authorized on behalf of each Subsidiary Guarantor to sign
the Affirmation of Subsidiary Guaranty, together with the true signatures of such persons;
and

(C) that the articles of incorporation and bylaws of each Subsidiary Guarantor
delivered to the Agent on the Closing Date remain in full force and effect and have not been
modified;

(vi) The following statements shall be true and correct on the First Amendment Effective Date
and on the date of the execution and delivery of this First Amendment by the Borrower:

(A) except to the extent modified in writing by the Borrower heretofore delivered to
the Lenders, the representations and warranties made pursuant to Article II of this First
Amendment and in the other Loan Documents are true and correct on and as of the First
Amendment Effective Date and as of the date of the execution and delivery of this First
Amendment by the Borrower as though made on and as of such date in all material respects;

- 15 -

 

(B) no Event of Default or event which with the giving of notice or passage of time or
both would become an Event of Default has occurred and is continuing, or would result from
the execution of or performance under this First Amendment; and

(C) the Borrower has in all material respects performed all agreements, covenants and
conditions required to be performed on or prior to the date hereof under the Original Credit
Agreement and the other Loan Documents;

(vii) There shall be delivered to the Agent for the benefit of each Lender a written opinion
of Dawne S. Hickton, Esquire, Vice President and General Counsel for the Borrower and the
Subsidiary Guarantors, dated the First Amendment Closing Date and in form and substance reasonably
satisfactory to the Agent and its counsel;

(viii) All legal details and proceedings in connection with the transactions contemplated by
this First Amendment, the Affirmation of Subsidiary Guaranty and the other Loan Documents shall be
in form and substance satisfactory to the Agent and its counsel, and the Agent shall have received
all such other counterpart originals or certified or other copies of such documents and proceedings
in connection with such transactions, in form and substance reasonably satisfactory to the Agent
and said counsel, as the Agent or said counsel may reasonably request;

(ix) No Material Adverse Change shall have occurred since December 31, 2003, and no material
litigation shall have been instituted by or against the Borrower or any Subsidiary or any of their
respective material properties or assets; and there shall be delivered to the Agent for the benefit
of each Lender, the L/C Issuer and the Agent a certificate of the Borrower dated the First
Amendment Closing Date and signed by the Chief Executive Officer, President or Chief Financial
Officer of the Borrower to each such effect;

(x) The Borrower shall deliver evidence acceptable to the Agent that adequate insurance in
compliance with Section 6.05 of the Agreement is in full force and effect;

(xi) Receipt by the Agent of a fully executed copy of the Master Assignment and Assumption
Agreement to be effective immediately upon the execution hereof;

(xii) All material consents required to effectuate the transactions contemplated hereby shall
have been obtained;

(xiii) The Agent and its counsel shall have received UCC lien search reports of filings
against the Borrower and each Subsidiary Guarantor, and tax lien and judgment searches relating to
the Borrower and each Subsidiary Guarantor, which are satisfactory in form and substance to the
Lender;

(xiv) Payment to the Agent of the Amendment Closing Fee for the benefit of the Lenders in
connection with this First Amendment; and

(xv) Receipt by the Agent of such other instruments, amendments, promissory notes, documents
and opinions of counsel as the Agent shall reasonably require, all of which shall be satisfactory
in form and content to the Agent and its counsel.

ARTICLE IV

GENERAL PROVISIONS

Section 4.01. Ratification of Terms. Except as expressly amended or waived by this
First Amendment, the Original Credit Agreement and each and every representation, warranty,
covenant, term and condition contained therein is specifically ratified and confirmed in all
material respects. The Borrower expressly ratifies and confirms the waiver of jury trial
provisions contained in the Original Credit Agreement and the other Loan Documents.

Section 4.02. References. All notices, communications, agreements, certificates,
documents or other instruments executed and delivered after the execution and delivery of this
First Amendment in connection with the Agreement, any of the other Loan Documents or the
transactions contemplated thereby may refer to the Original Credit Agreement without making
specific reference to this First Amendment, but nevertheless all such references shall include this
First Amendment unless the context requires otherwise. After the execution and delivery of this
First

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Amendment by the Borrower and the effectiveness of this First Amendment, all references in
the Original Credit Agreement and each of the other Loan Documents to the “Agreement” shall be
deemed to be references to the Original Credit Agreement as amended hereby.

Section 4.03. Incorporation Into Original Credit Agreement. This First Amendment is
deemed incorporated into, is to be construed in connection with and is made a part of, the Original
Credit Agreement as of the First Amendment Effective Date. To the extent that any term or
provision of this First Amendment is or may be deemed expressly inconsistent with any term or
provision of the Original Credit Agreement, the terms and provisions hereof shall control. For
greater certainty, any calculations of the financial covenants under the Original Credit Agreement
for periods ending prior to the First Amendment Effective Date need only comply with the terms of
the Original Credit Agreement as of the date in question.

Section 4.04. Counterparts. This First Amendment may be executed in different
counterparts, and by the different parties hereto on separate counterparts, each of which when so
executed shall be regarded as an original, and all such counterparts shall constitute one First
Amendment. Delivery of an executed signature page of a counterpart of this First Amendment by
telecopier shall be as effective as delivery of a manually executed counterpart of this First
Amendment.

Section 4.05. Capitalized Terms. Except for proper nouns and as otherwise defined
herein, capitalized terms used herein as defined terms shall have the meanings ascribed to them in
the Original Credit Agreement, as amended hereby.

Section 4.06. Taxes. The Borrower hereby agrees (i) to pay any and all stamp and
other taxes and fees payable or determined to be payable in connection with the execution,
delivery, filing and recording of this First Amendment and (ii) to save the Documentation Agents,
the Agent and the Lenders harmless from and against any and all liabilities with respect to or
resulting from any delay in paying or omission to pay such taxes and fees.

Section 4.07. Costs and Expenses. The Borrower hereby agrees to pay all costs and
expenses of the Agent (including, without limitation, the reasonable fees and the disbursements of
the Agent’s special counsel, Tucker Arensberg, P.C.) in connection with the preparation, execution
and delivery of this First Amendment and the related documents.

Section 4.08. Severability. Any provision of this First Amendment which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or enforceability without invalidating the remaining portions hereof or
affecting the validity or enforceability of such provision in any other jurisdiction.

Section 4.09. Governing Law. THIS FIRST AMENDMENT AND THE RIGHTS AND OBLIGATIONS
HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE COMMONWEALTH OF
PENNSYLVANIA WITHOUT REGARD TO THE PROVISIONS THEREOF REGARDING CONFLICTS OF LAW.

Section 4.10. Headings. The headings of the sections in this First Amendment are for
purposes of reference only and shall not be deemed to be a part hereof.

Section 4.11. Acknowledgment of Amendment of the Revolving Credit Note. Each of the
Borrower, the Lenders and the Agent acknowledge, agree and confirm that as of the First Amendment
Effective Date each Revolving Credit Note executed and delivered by the Borrower to the Lenders in
connection with the Original Credit Agreement shall, and hereby is, amended to extend the stated
maturity date of such Revolving Credit Note to May 31, 2008; and a counterpart original of this
First Amendment, or copy hereof, may be attached to the Revolving Credit Note of a Lender as
further evidence thereof.

Section 4.12. First Amendment Effective Date Adjustment of Commitments. Effective on
the First Amendment Effective Date, the Revolving Credit Commitment (as defined in the Original
Credit Agreement) and the risk participation in outstanding Letters of Credit of each Non-Extending
Bank shall be deemed to have been permanently terminated in full upon receipt by such Non-Extending
Bank of the payment of any outstanding

- 17 -

 

amounts due to such Bank thereunder, whereupon Agent shall
make such adjustments to the Revolving Credit Commitments of the Original Lenders (other than the
Non-Extending Banks) such that the amount of their Revolving Credit Commitments and risk
participations in outstanding Letters of Credit are in accordance with their respective Commitment
Percentages as modified by this First Amendment. Agent shall request that each Non-Extending Bank
promptly return its promissory note executed in connection with the Original Credit Agreement to
Borrower. Each Lender that was an Original Lender under the Original Credit Agreement shall
promptly return its promissory note executed in connection with the Original Credit Agreement to
Borrower.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have caused this
First Amendment to Revolving Credit and Letter of Credit Issuance Agreement to be executed by their
respective duly authorized officers as of the date first written above

Borrower:

	 	 	 	 	 	 	 	 	 	 	 
	ATTEST/WITNESS:	 	 	 	RTI INTERNATIONAL METALS, INC., an Ohio corporation
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 
	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Agent:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PNC BANK, NATIONAL ASSOCIATION,
	 	 	 	 	 	 	as Agent
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	David B. Gookin	 	 
	 

	 	 	 	 	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Documentation Agents:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	NATIONAL CITY BANK OF
	 	 	 	 	 	 	PENNSYLVANIA, as a Documentation Agent
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	COMERICA BANK, as a Documentation
	 

	 	 	 	 	 	Agent	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	 	 	(SEAL)
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Lenders:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PNC BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	 	 	(SEAL)
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	David B. Gookin	 	 
	 

	 	 	 	 	 	Title:
	 	Vice President	 	 

[SIGNATURES OF LENDERS CONTINUED ON NEXT PAGE]

 

 

[CONTINUATION OF SIGNATURES OF LENDERS TO FIRST AMENDMENT TO

CREDIT AGREEMENT DATED AS OF JUNE 4, 2004]

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NATIONAL CITY BANK OF PENNSYLVANIA
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	(SEAL)
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	COMERICA BANK
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	(SEAL)
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	LaSALLE BANK NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	(SEAL)
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CITIZENS BANK OF PENNSYLVANIA
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	(SEAL)
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	FIFTH THIRD BANK
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	(SEAL)
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

SCHEDULE 1.01(a)

LENDERS; REVOLVING CREDIT COMMITMENTS

Amount of

Revolving

Lender                     Credit Commitment

			
	Name:	 	PNC Bank, National Commitment $30,000,000

   Association Ratable Share: 33.333333%

Notice Address:

Agency Services

One PNC Plaza, 22nd Floor

249 Fifth Avenue

Pittsburgh, PA 15222-2707

Attention: David B. Gookin

Telephone: 412-762-4815

Telecopier: 412-305-3232

			
	Name:	 	National City Bank Commitment $15,000,000

   of Pennsylvania Ratable Share: 16.666667%

Notice Address:

Corporate Banking

20 Stanwix Center IDC: 25-191

Pittsburgh, PA 15222

Attention: Dominic J. Pelliccotti

Telephone: 412-644-6056

Telecopier: 412-471-4883

			
	Name:	 	Comerica Bank Commitment $15,000,000

   Ratable Share: 16.666667%

Notice Address:

500 Woodward Avenue, MC 3268

Detroit, MI 48226

Attention: Scott M. Kowalski

Telephone: 313-222-9452

Telecopier: 313-222-9514

 

 

			
	Name:	 	LaSalle Bank National Association Commitment $10,000,000

   Ratable Share: 11.111111%

Notice Address:

1300 East 9th Street, Suite 1000

Cleveland, OH 44114

Attention: Philip Medsger

Telephone: 216-802-2200

Telecopier: 216-802-2212

			
	Name:	 	Citizens Bank of Pennsylvania Commitment $10,000,000

   Ratable Share: 11.111111%

Notice Address:

Two Mellon Center, Room 230

Pittsburgh, PA 15259

Attention: John J. Ligday

Telephone: 412-236-1097

Telecopier: 412-236-8671

			
	Name:	 	Fifth Third Bank Commitment $10,000,000

   Ratable Share: 11.111111%

Notice Address:

1404 East 9th Street

Cleveland, OH 44114

Attention: Martin McGinty

Telephone: 216-274-5098

Telecopier: 216-274-5507

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]