Document:

<PAGE>

                                                                    EXHIBIT 10.1
================================================================================

                                COORSTEK, INC.

                                 $100,000,000

               7.5% Senior Subordinated Notes due July 25, 2011

                            NOTE PURCHASE AGREEMENT

                              Dated July 25, 2001

================================================================================
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                        Page
                                                                                                        ----
<S>                                                                                                     <C>
1.   AUTHORIZATION OF NOTES..........................................................................      1

2.   SALE AND PURCHASE OF NOTES......................................................................      1

3.   CLOSING.........................................................................................      1

4.   CONDITIONS TO CLOSING...........................................................................      2
     4.1.   Representations and Warranties...........................................................      2
     4.2.   Performance; No Default..................................................................      2
     4.3.   Compliance Certificates..................................................................      2
     4.4.   Opinions of Counsel......................................................................      2
     4.5.   Purchase Permitted By Applicable Law, etc................................................      2
     4.6.   Payment of Special Counsel Fees..........................................................      3
     4.7.   Changes in Corporate Structure...........................................................      3
     4.8.   Proceedings and Documents................................................................      3
     4.9.   Purchaser's Certificate..................................................................      3
     4.10.  Proceedings and Documents................................................................      3

5.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY...................................................      3
     5.1.   Organization; Power and Authority........................................................      4
     5.2.   Authorization, etc.......................................................................      4
     5.3.   Disclosure...............................................................................      4
     5.4.   Organization and Ownership of Shares of Subsidiaries; Affiliates.........................      4
     5.5.   Financial Statements.....................................................................      5
     5.6.   Compliance with Laws, Other Instruments, etc.............................................      5
     5.7.   Authorizations, Consents, etc............................................................      6
     5.8.   Litigation; Observance of Material Agreements, Statutes and Orders.......................      6
     5.9.   Taxes....................................................................................      6
     5.10.  Title to Property; Leases................................................................      6
     5.11.  Insurance................................................................................      7
     5.12.  Licenses, Permits, etc...................................................................      7
     5.13.  Private Offering by the Company..........................................................      7
     5.14.  Use of Proceeds; Margin Regulations......................................................      7
     5.15.  Existing Indebtedness; Future Liens......................................................      7
     5.16.  Status under Certain Statutes............................................................      8

6.   REPRESENTATIONS OF THE PURCHASER................................................................      8

7.   INFORMATION AS TO COMPANY.......................................................................      8
     7.1.   Financial and Business Information.......................................................      8
     7.2.   Officer's Certificate....................................................................     10
     7.3.   Inspection...............................................................................     11

8.   PREPAYMENT OF THE NOTES.........................................................................     11
     8.1    Optional Prepayments.....................................................................     11
     8.2.   Allocation of Partial Prepayments........................................................     11
     8.3.   Maturity; Surrender, etc.................................................................     12
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                      <C>
9.   SUBORDINATION OF SENIOR SUBORDINATED NOTES......................................................     12
     9.1    Notes Subordinate to Senior Debt.........................................................     12
     9.2    Payment Over of Proceeds Upon Dissolution, etc...........................................     12
     9.3    No Payment When Senior Debt in Default...................................................     14
     9.4    Payment Permitted If No Default..........................................................     15
     9.5    Subrogation to Rights of Holders of Senior Debt..........................................     15
     9.6    Provisions Solely to Define Relative Rights..............................................     16
     9.7    No Waiver of Subordination Provisions....................................................     16
     9.8    Reliance on Judicial Order or Certificate of Liquidating Agent...........................     16
     9.9    Reliance by Holders of Senior Debt on Subordination Provisions...........................     16
     9.10   Reinstatement............................................................................     17
     9.11   Property Claims..........................................................................     17
     9.12   Acknowledgement of Certain Rights........................................................     17

10.  AFFIRMATIVE COVENANTS...........................................................................     17
     10.1.  Compliance with Law......................................................................     17
     10.2.  Insurance................................................................................     18
     10.3.  Maintenance of Properties................................................................     18
     10.4.  Payment of Taxes and Claims..............................................................     18
     10.5.  Corporate Existence, etc.................................................................     18
     10.6   Books and Records........................................................................     19

11.  NEGATIVE COVENANTS..............................................................................     19
     11.1.  Incurrence of Indebtedness...............................................................     19
     11.2.  Merger, Consolidation, Sale of Assets....................................................     21
     11.3.  Liens....................................................................................     22
     11.4.  Restricted Payments......................................................................     23
     11.5.  No Public Offering of Notes..............................................................     23

12.  EVENTS OF DEFAULT...............................................................................     23

13.  REMEDIES ON DEFAULT, ETC........................................................................     25
     13.1.  Acceleration.............................................................................     25
     13.2.  Other Remedies...........................................................................     26
     13.3.  Rescission...............................................................................     26
     13.4.  No Waivers or Election of Remedies, Expenses, etc........................................     26

14.  REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES...................................................     26
     14.1.  Registration of Notes....................................................................     26
     14.2.  Transfer and Exchange of Notes...........................................................     27
     14.3.  Replacement of Notes.....................................................................     27

15.  PAYMENTS ON NOTES...............................................................................     28
     15.1.  Place of Payment.........................................................................     28
     15.2.  Home Office Payment......................................................................     28

16.  EXPENSES, ETC...................................................................................     28
     16.1.  Transaction Expenses.....................................................................     28
     16.2.  Survival.................................................................................     29

17.  SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT....................................     29

18.  AMENDMENT AND WAIVER............................................................................     29
     18.1.  Requirements.............................................................................     29
</TABLE>

                                      ii
<PAGE>

<TABLE>
<S>                                                                                                      <C>
     18.2.  Solicitation of Holders of Notes.........................................................     29
     18.3.  Binding Effect, etc......................................................................     30
     18.4.  Notes held by Company, etc...............................................................     30

19.  NOTICES.........................................................................................     30

20.  CONFIDENTIAL INFORMATION........................................................................     31

21.  MISCELLANEOUS...................................................................................     32
     21.1.  Successors and Assigns...................................................................     32
     21.2.  Payments Due on Non-Business Days........................................................     32
     21.3.  Severability.............................................................................     32
     21.4.  Construction.............................................................................     32
     21.5.  Counterparts.............................................................................     32
     21.6.  Governing Law............................................................................     32
</TABLE>

  SCHEDULE A        --     INFORMATION RELATING TO PURCHASER

  SCHEDULE B        --     DEFINED TERMS

  SCHEDULE 4.7      --     Changes in Corporate Structure

  SCHEDULE 5.4      --     Subsidiaries of the Company, Ownership of Subsidiary
                            Stock, Officers and Directors

  SCHEDULE 5.8      --     Certain Litigation

  SCHEDULE 5.15     --     Existing Indebtedness

  EXHIBIT 1         --     Form of 7.5% Senior Subordinated Note due July 25,
                           2011

  EXHIBIT 4.4       --     Form of Opinion of Counsel for the Company

                                      iii
<PAGE>

               7.5% Senior Subordinated Notes due July 25, 2011

                                                                   July 25, 2001

TO GOLDEN HERITAGE LLC:

Ladies and Gentlemen:

     CoorsTek, Inc., a Delaware corporation (the "Company"), agrees with you as
follows:

1.   AUTHORIZATION OF NOTES.

     The Company will authorize the issuance and sale of $100,000,000 aggregate
principal amount of its 7.5% Senior Subordinated Notes due July 25, 2011 (the
"Notes," such term to include any such notes issued in substitution therefor
pursuant to Section 14 of this Agreement).  The Notes shall be substantially in
the form set out in Exhibit 1, with such changes therefrom, if any, as may be
approved by you and the Company.  Certain capitalized terms used in this
Agreement are defined in Schedule B; references to a "Schedule" or an "Exhibit"
are, unless otherwise specified, to a Schedule or an Exhibit attached to this
Agreement.

2.   SALE AND PURCHASE OF NOTES.

     Subject to the terms and conditions of this Agreement, the Company will
issue and sell to you and you will purchase from the Company, at the Closing
provided for in Section 3, $100,000,000 in aggregate principal amount of the
Notes at the purchase price of 100% of the principal amount thereof.

3.   CLOSING.

     The sale and purchase of the Notes to be purchased by you shall occur at
the offices of Hogan & Hartson L.L.P., 1200 Seventeenth Street, Suite 1500,
Denver, Colorado 80202 at 10:00 a.m., mountain daylight time, at a closing (the
"Closing") on July 25, 2001 or on such other Business Day thereafter on or prior
to July 31, 2001 as may be agreed upon by the Company and you.  At the Closing
the Company will deliver to you the Notes to be purchased by you in the form of
a single Note (or such greater number of Notes in denominations of at least
$1,000,000 as you may request) dated the date of the Closing and registered in
your name (or in the name of your nominee), against delivery by you to the
Company or its order of immediately available funds in the amount of the
purchase price therefor by wire or intrabank transfer of immediately available
funds to, or to the order of, the Company at an account designated by the
Company (including wire transfer and other information provided by the Company
to you at least three Business Days prior to the Closing).  If at the Closing
the Company shall fail to tender such Notes to you as provided above in this
Section 3, or any of the conditions specified in Section 4 shall not have been
fulfilled to your satisfaction, you shall, at your election, be relieved of all
further obligations under this Agreement, without thereby waiving any rights you
may have by reason of such failure or such non-fulfillment.
<PAGE>

4.   CONDITIONS TO CLOSING.

     Your obligation to purchase and pay for the Notes to be sold to you at the
Closing is subject to the fulfillment to your satisfaction, prior to or at the
Closing, of the conditions set forth in Sections 4.1 through 4.8.  The Company's
obligation to issue and sell the Notes to be sold to you at the Closing is
subject to the fulfillment to the Company's satisfaction, prior to or at the
Closing, of the conditions set forth in Sections 4.9 and 4.10.

     4.1.  Representations and Warranties.

           The representations and warranties of the Company in this Agreement
shall be correct when made and at the time of the Closing.

     4.2.  Performance; No Default.

           The Company shall have performed and complied with all agreements and
conditions contained in this Agreement required to be performed or complied with
by the Company prior to or at the Closing and after giving effect to the issue
and sale of the Notes (and the application of the proceeds thereof as
contemplated by Section 5.14) no Default or Event of Default shall have occurred
and be continuing.

     4.3.  Compliance Certificates.
           -----------------------

           (a) Officer's Certificate. The Company shall have delivered to you an
               ---------------------
Officer's Certificate, dated the date of the Closing, certifying that the
conditions specified in Sections 4.1, 4.2 and 4.7 have been fulfilled.

           (b) Secretary's Certificate.  The Company shall have delivered to you
               -----------------------
a certificate certifying as to the certificate of incorporation and bylaws of
the Company and the resolutions attached thereto and other corporate proceedings
relating to the authorization, execution and delivery of the Notes and this
Agreement.

     4.4.  Opinions of Counsel.

           You shall have received an opinion in form and substance satisfactory
to you, dated the date of the Closing from Hogan & Hartson L.L.P., counsel for
the Company, covering the matters set forth in Exhibit 4.4 and the Company
hereby instructs its counsel to deliver such opinion to you.

     4.5.  Purchase Permitted By Applicable Law, etc.

           On the date of the Closing your purchase of Notes shall (i) be
                                                                    -
permitted by the laws and regulations of each jurisdiction to which you and the
Company are subject, (ii) not violate any applicable law or regulation
                      --
(including, without limitation, Regulation T, U or X of the Board of Governors
of the Federal Reserve System) and (iii) not subject you to any tax, penalty or
                                    ---
liability under or pursuant to any applicable law or regulation, which law or
regulation was not in effect on the date hereof.  If requested by you, you shall
have received an Officer's Certificate certifying as to

                                       2
<PAGE>

such matters of fact as you may reasonably specify to enable you to determine
whether such purchase is so permitted.

     4.6.  Payment of Special Counsel Fees.

           Without limiting the provisions of Section 16.1, the Company shall
have paid on or before the Closing the estimated fees, charges and disbursements
of your special counsel to the extent reflected in a statement of such counsel
rendered to the Company at least one Business Day prior to the Closing.  The
Company acknowledges that it shall remain obligated to pay any shortfall between
the special counsel's estimated and actual legal fees, charges and disbursements
relating to the transactions contemplated hereby to the extent provided in
Section 16.1.

     4.7.  Changes in Corporate Structure.

           Except as specified in Schedule 4.7, the Company shall not have
changed its jurisdiction of incorporation or been a party to any merger or
consolidation and shall not have succeeded to all or any substantial part of the
liabilities of any other entity, at any time following the date of the most
recent financial statements referred to in Schedule 5.5.

     4.8.  Proceedings and Documents.

           All corporate and other proceedings in connection with the
transactions contemplated by this Agreement and all documents and instruments
incident to such transactions shall be satisfactory to you and your special
counsel, and you and your special counsel shall have received all such
counterpart originals or certified or other copies of such documents as you or
they may reasonably request.

     4.9.  Purchaser's Certificate.

           You shall have delivered to the Company a Manager's Certificate,
dated the date of the Closing, certifying as to the certificate of formation of
the Company and the resolutions attached thereto, all other limited liability
company proceedings relating to the authorization, execution and delivery of
this Agreement and the purchase of the Notes and the taking of all duly
authorized and proper action by the several trusts regarding your formation,
capitalization and purchase of the Notes.

     4.10. Proceedings and Documents.

           All corporate and other proceedings in connection with the
transactions contemplated by this Agreement and all documents and instruments
incident to such transactions shall be satisfactory to the Company and its
counsel, and the Company and its counsel shall have received all such
counterpart originals or certified or other copies of such documents as the
Company or its counsel may reasonably request.

5.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

     The Company represents and warrants to you that:

                                       3
<PAGE>

     5.1.  Organization; Power and Authority.

           The Company is a corporation duly organized, validly existing and in
good standing under the laws of its jurisdiction of incorporation, and is duly
qualified as a foreign corporation and is in good standing in each jurisdiction
in which such qualification is required by law, other than those jurisdictions
as to which the failure to be so qualified or in good standing would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.  The Company has the corporate power and authority to own or
hold under lease the properties it purports to own or hold under lease, to
transact the business it transacts and proposes to transact, to execute and
deliver this Agreement and the Notes and to perform the provisions hereof and
thereof.

     5.2.  Authorization, etc.

           This Agreement and the Notes have been duly authorized by all
necessary corporate action on the part of the Company, and this Agreement
constitutes, and upon execution and delivery thereof each Note will constitute,
a legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability may be
limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or
            -
other similar laws affecting the enforcement of creditors' rights generally and
(ii) general principles of equity (regardless of whether such enforceability is
 --
considered in a proceeding in equity or at law).

     5.3.  Disclosure.

           No representation or warranty of the Company or any Subsidiary
contained in this Agreement or any other document, certificate, schedule or
written statement furnished to you by or on behalf of the Company or any
Subsidiary for use in connection with the transactions contemplated by this
Agreement contains any untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements contained herein or
therein not misleading in light of the circumstances in which the same were
made.  There is no fact known to the Company or any Subsidiary that has had,
would have or would reasonably be expected to have a Material Adverse Effect
that has not been expressly disclosed herein or in such other documents and
statements furnished to you for use in the transaction contemplated hereby.

     5.4.  Organization and Ownership of Shares of Subsidiaries; Affiliates.

           (a) Schedule 5.4 contains (except as noted therein) complete and
correct lists (i) of the Company's Subsidiaries, showing, as to each Subsidiary,
               -
the correct name thereof, the jurisdiction of its organization, and the
percentage of shares of each class of its capital stock or similar equity
interests outstanding owned by the Company and each other Subsidiary, and (ii)
                                                                           --
of the Company's directors and executive officers.

           (b) All of the outstanding shares of capital stock or similar equity
interests of each Subsidiary shown in Schedule 5.4 as being owned by the Company
and its Subsidiaries have been validly issued, are fully paid and nonassessable
and are owned by the Company or another Subsidiary free and clear of any Lien
(except as otherwise disclosed in Schedule 5.4).

                                       4
<PAGE>

           (c) Each Subsidiary identified in Schedule 5.4 is a corporation or
other legal entity duly organized, validly existing and in good standing under
the laws of its jurisdiction of organization, and is duly qualified as a foreign
corporation or other legal entity and is in good standing in each jurisdiction
in which such qualification is required by law, other than those jurisdictions
as to which the failure to be so qualified or in good standing would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.  Each such Subsidiary has the corporate or other power and
authority to own or hold under lease the properties it purports to own or hold
under lease and to transact the business it transacts and proposes to transact.

           (d) No Subsidiary is a party to, or otherwise subject to any legal
restriction or any agreement (other than this Agreement, the Senior Credit
Facility, the agreements listed on Schedule 5.4 and customary limitations
imposed by corporate law statutes) restricting the ability of such Subsidiary to
pay dividends out of profits or make any other similar distributions of profits
to the Company or any of its Subsidiaries that owns outstanding shares of
capital stock or similar equity interests of such Subsidiary.

     5.5.  Financial Statements.

           The Company has delivered to you copies of the consolidated financial
statements of the Company and its Subsidiaries for the year ended December 31,
2000 and for the quarter ended March 31, 2001.  Such financial statements
(including the related schedules and notes) fairly present in all material
respects the consolidated financial position of the Company and its Subsidiaries
as of such dates, and the consolidated results of their operations and cash
flows for the periods so specified and have been prepared in accordance with
GAAP consistently applied throughout the periods involved except as set forth in
the notes thereto and, in the case of such financial statement for the quarter
ended March 31, 2001, subject to normal year-end adjustments.  Except as
otherwise provided to you in writing at least one Business Day prior to the
Closing, there have been no changes in the consolidated financial position of
the Company and its Subsidiaries from that shown in such financial statements
after March 31, 2001 that would reasonably be expected to have a Material
Adverse Effect.

     5.6.  Compliance with Laws, Other Instruments, etc.

           The execution, delivery and performance by the Company of this
Agreement and the Notes will not (i) contravene, result in any breach of, or
                                  -
constitute a default under, or result in the creation of any Lien in respect of
any property of the Company or any Subsidiary under, any Material Agreement to
which the Company or any Subsidiary is bound or by which the Company or any
Subsidiary or any of their respective properties may be bound or affected, (ii)
                                                                            --
conflict with or result in a breach of any of the terms, conditions or
provisions of any order, judgment, decree, or ruling of any court, arbitrator or
Governmental Authority applicable to the Company or any Subsidiary, (iii)
                                                                     ---
violate any provision of any statute or other rule or regulation of any
Governmental Authority applicable to the Company or any Subsidiary or (iv)
violate any provision of the certificate of incorporation or bylaws of the
Company.

                                       5
<PAGE>

     5.7.  Authorizations, Consents, etc.

           No consent, approval or authorization of, or registration, filing or
declaration with, any Governmental Authority or any other Person is required in
connection with the execution, delivery or performance by the Company of this
Agreement or the Notes except for the consents required under the Senior Credit
Facility and except where the failure to obtain any such consent, approval or
authorization of, or to register, file or declare with any Governmental
Authority or any other Person would not reasonably be expected to have a
Material Adverse Effect.

     5.8.  Litigation; Observance of Material Agreements, Statutes and Orders.

           (a) Except as disclosed in Schedule 5.8, there are no actions, suits
or proceedings pending or, to the knowledge of the Company, threatened against
or affecting the Company or any Subsidiary or any property of the Company or any
Subsidiary in any court or before any arbitrator of any kind or before or by any
Governmental Authority that, individually or in the aggregate, would reasonably
be expected to have a Material Adverse Effect.

           (b) Neither the Company nor any Subsidiary is in default under any
term of any Material Agreement to which it is a party or by which it is bound,
or any order, judgment, decree or ruling of any court, arbitrator or
Governmental Authority or is in violation of any applicable law, ordinance, rule
or regulation (including, without limitation, Environmental Laws) of any
Governmental Authority, which default or violation would reasonably be expected
to have a Material Adverse Effect.

     5.9.  Taxes.

           The Company and its Subsidiaries have filed all tax returns that are
required to have been filed in any jurisdiction on or prior to the date hereof,
and have paid all taxes shown to be due and payable on such returns and all
other taxes and assessments levied upon them or their properties, assets, income
or franchises, to the extent such taxes and assessments have become due and
payable and before they have become delinquent, except for any taxes and
assessments (i) the failure of which to timely pay would not reasonably be
             -
expected to have a Material Adverse Effect or (ii) the amount, applicability or
                                               --
validity of which is currently being contested in good faith by appropriate
proceedings and with respect to which the Company or a Subsidiary, as the case
may be, has established adequate reserves in accordance with GAAP.  The Company
knows of no basis for any other tax or assessment that would reasonably be
expected to have a Material Adverse Effect.  To the Company's knowledge, the
charges, accruals and reserves on the books of the Company and its Subsidiaries
in respect of Federal, state or other taxes for all fiscal periods are adequate
in accordance with GAAP.

     5.10. Title to Property; Leases.

           The Company and its Subsidiaries have good and sufficient title to
their respective properties that individually or in the aggregate are Material,
including all such properties reflected in the most recent audited balance sheet
referred to in Section 5.5 or purported to have been acquired by the Company or
any Subsidiary after said date (except as sold or otherwise disposed of in the
ordinary course of business), in each case free and clear of Liens prohibited by
this Agreement.  All Material leases are valid and subsisting and are in full
force and effect in all Material respects.

                                       6
<PAGE>

     5.11.  Insurance.

            The Company and each of its Subsidiaries maintain, with financially
sound and reputable insurers, insurance with respect to their respective
properties and businesses against such casualties and contingencies, of such
types, on such terms and in such amounts (including deductibles, co-insurance
and self-insurance, if adequate reserves are maintained with respect thereto) as
is customary in the case of entities of established reputations engaged in the
same or a similar business and similarly situated.

     5.12.  Licenses, Permits, etc.

            (a) The Company and its Subsidiaries own or have sufficient and
legally enforceable rights to use all licenses, permits, franchises,
authorizations, patents, copyrights, service marks, trademarks and trade names,
or rights thereto, that individually or in the aggregate are Material, without
known conflict with the rights of others; and

            (b) to the knowledge of the Company, no product of the Company
infringes in any material respect any license, permit, franchise, authorization,
patent, copyright, service mark, trademark, trade name or other right owned by
any other Person.

     5.13.  Private Offering by the Company.

            Neither the Company nor anyone acting on its behalf has offered the
Notes or any similar securities for sale to, or solicited any offer to buy any
of the same from, or otherwise approached or negotiated in respect thereof with,
any person other than you.  Neither the Company nor anyone acting on its behalf
has taken, or will take, any action that would subject the issuance or sale of
the Notes to the registration requirements of Section 5 of the Securities Act.

     5.14.  Use of Proceeds; Margin Regulations.

            The Company will apply the proceeds of the sale of the Notes to
repay all or a portion of the Company's existing Indebtedness under the Senior
Credit Facility, to pay the costs associated with the issuance of the Notes and
to fund the general working capital needs of the Company and its Subsidiaries.
No part of the proceeds from the sale of the Notes hereunder will be used,
directly or indirectly, for the purpose of buying or carrying any margin stock
within the meaning of Regulation U of the Board of Governors of the Federal
Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading
in any securities under such circumstances as to involve the Company in a
violation of Regulation X of said Board (12 CFR 224) or to involve any broker or
dealer in a violation of Regulation T of said Board (12 CFR 220). As used in
this Section, the terms "margin stock" and "purpose of buying or carrying" shall
have the meanings assigned to them in said Regulation U.

     5.15.  Existing Indebtedness; Future Liens.

            (a) Except as described therein, Schedule 5.15 sets forth (i) a
                                                                       -
complete and correct list of all outstanding Indebtedness of the Company and its
Subsidiaries as of March 31, 2001, and (ii) a complete and correct list of all
                                        --
outstanding Senior Debt as of June 30, 2001.  There has been no Material change
in the amounts, interest rates, sinking funds, installment payments or

                                       7
<PAGE>

maturities of any Senior Debt since June 30, 2001, or any other Indebtedness
since March 31, 2001, except for borrowings in the ordinary course of business
under the Senior Credit Facility and changes in the value or liabilities in
respect of Financial Hedges (as defined in the Senior Credit Facility).  Neither
the Company nor any Subsidiary is in default and no waiver of default is
currently in effect, in the payment of any principal or interest on any
Indebtedness of the Company or such Subsidiary and no event or condition exists
with respect to any Indebtedness of the Company or any Subsidiary that would
permit (or that with notice or the lapse of time, or both, would permit) one or
more Persons to cause such Indebtedness to become due and payable before its
stated maturity or before its regularly scheduled dates of payment.

            (b) Except as disclosed in Schedule 5.15, neither the Company nor
any Subsidiary has agreed or consented to cause or permit in the future (upon
the happening of a contingency or otherwise) any of its property, whether now
owned or hereafter acquired, to be subject to a Lien not permitted by Section
11.3.

     5.16.  Status under Certain Statutes.

            Neither the Company nor any Subsidiary is subject to registration as
an "investment company" (as defined in the Investment Company Act of 1940, as
amended), or subject to regulation under the Public Utility Holding Company Act
of 1935, as amended, the Interstate Commerce Act, as amended, or the Federal
Power Act, as amended.

6.   REPRESENTATIONS OF THE PURCHASER.

     You represent that you are purchasing the Notes for your own account,

provided that the disposition of your property shall at all times be within your
--------
control.  You understand that the Notes have not been registered under the
Securities Act and may be resold only if registered pursuant to the provisions
of the Securities Act or if an exemption from registration is available, except
under circumstances where neither such registration nor such an exemption is
required by law, and that the Company is not required to register the Notes.

7.   INFORMATION AS TO COMPANY.

     7.1.   Financial and Business Information.

            The Company shall deliver to each Holder of Notes:

                (a) Quarterly Statements -- within 60 days after the end of each
                    --------------------
quarterly fiscal period in each fiscal year of the Company (other than the last
quarterly fiscal period of each such fiscal year), duplicate copies of,

                    (i)  a consolidated balance sheet of the Company and its
     Subsidiaries as at the end of such quarter, and

                    (ii) consolidated statements of income and cash flows of the
     Company and its Subsidiaries, for such quarter and (in the case of the
     second and third quarters) for the portion of the fiscal year ending with
     such quarter, setting forth in each case in comparative form the figures
     for the corresponding periods in the previous fiscal year, all

                                       8
<PAGE>

     in reasonable detail, prepared in accordance with GAAP applicable to
     quarterly financial statements generally, and certified by a Senior
     Financial Officer as fairly presenting, in all material respects, the
     financial position of the companies being reported on and their results of
     operations and cash flows, subject to changes resulting from year-end
     adjustments, provided that delivery within the time period specified above
                  --------
     of copies of the Company's Quarterly Report on Form 10-Q prepared in
     compliance with the requirements therefor and filed with the Securities and
     Exchange Commission shall be deemed to satisfy the requirements of this
     Section 7.1(a);

               (b) Annual Statements -- within 105 days after the end of each
                   -----------------
fiscal year of the Company, duplicate copies of,

                   (i)  a consolidated balance sheet of the Company and its
     Subsidiaries, as at the end of such year, and

                   (ii) consolidated statements of income, changes in
     shareholders' equity and cash flows of the Company and its Subsidiaries,
     for such year, setting forth in each case in comparative form the figures
     for the previous fiscal year, all in reasonable detail, prepared in
     accordance with GAAP, and accompanied by an opinion thereon of independent
     certified public accountants of recognized national standing, which opinion
     shall state that such financial statements present fairly, in all material
     respects, the financial position of the companies being reported upon and
     their results of operations and cash flows and have been prepared in
     conformity with GAAP, and that the examination of such accountants in
     connection with such financial statements has been made in accordance with
     generally accepted auditing standards, and that such audit provides a
     reasonable basis for such opinion in the circumstances, provided that
                                                             --------
     delivery within the time period specified above of copies of the Company's
     Annual Report on Form 10-K prepared in compliance with the requirements
     therefor and filed with the Securities and Exchange Commission shall be
     deemed to satisfy the requirements of this Section 7.1(b).

               (c) SEC and Other Reports -- promptly upon their becoming
                   ---------------------
available, one copy of (i) each financial statement, report, notice or proxy
                        -
statement sent by the Company or any Subsidiary to public securities holders
generally, and (ii) each regular or periodic report, each registration statement
                --
(without exhibits), and each prospectus and all amendments thereto filed by the
Company or any Subsidiary with the Securities and Exchange Commission;

               (d) Notice of Default or Event of Default -- promptly, and in any
                   -------------------------------------
event within ten Business Days after a Responsible Officer becoming aware of the
existence of any Default or Event of Default or that any Person has given any
notice or taken any action with respect to a claimed default hereunder or that
any Person has given any notice or taken any action with respect to a claimed
default of the type referred to in Section 12(i), a written notice specifying
the nature and period of existence thereof and what action the Company is taking
or proposes to take with respect thereto;

               (e) ERISA Matters -- promptly, and in any event within ten
                   -------------
Business Days after a Responsible Officer becoming aware of any of the
following, a written notice setting

                                       9
<PAGE>

forth the nature thereof and the action, if any, that the Company or an ERISA
Affiliate proposes to take with respect thereto:

               (i)    with respect to any Plan, any reportable event, as defined
     in section 4043(b) of ERISA and the regulations thereunder, for which
     notice thereof has not been waived pursuant to such regulations as in
     effect on the date hereof; or

               (ii)   the taking by the PBGC of steps to institute, or the
     threatening by the PBGC of the institution of, proceedings under section
     4042 of ERISA for the termination of, or the appointment of a trustee to
     administer, any Plan, or the receipt by the Company or any ERISA Affiliate
     of a notice from a Multiemployer Plan that such action has been taken by
     the PBGC with respect to such Multiemployer Plan; or

               (iii)  any event, transaction or condition that could result in
     the incurrence of any liability by the Company or any ERISA Affiliate
     pursuant to Title I or IV of ERISA or the penalty or excise tax provisions
     of the Code relating to employee benefit plans, or in the imposition of any
     Lien on any of the rights, properties or assets of the Company or any ERISA
     Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax
     provisions, if such liability or Lien, taken together with any other such
     liabilities or Liens then existing, would reasonably be expected to have a
     Material Adverse Effect;

          (f)  Notices from Governmental Authority -- promptly, and in any event
               -----------------------------------
within 30 days of receipt thereof, copies of any notice to the Company or any
Subsidiary from any Governmental Authority relating to any order, ruling,
statute or other law or regulation that would reasonably be expected to have a
Material Adverse Effect;

          (g)  Notices Regarding Senior Debt -- concurrently with the delivery
               -----------------------------
to the holders of Senior Debt, copies of (i) all notices, reports and financial
information delivered to the holders of Senior Debt which are not otherwise
required to be delivered to the holders of the Notes pursuant to this Section
7.1, and (ii) copies of all requests for amendments and waivers delivered to the
holders of Senior Debt and final copies of all amendments and waivers executed
and delivered by the Company and its Subsidiaries from time to time in respect
of any Senior Debt; and

          (h)  Requested Information -- with reasonable promptness, such other
               ---------------------
data and information relating to the financial condition, assets or properties
of the Company and its Subsidiaries or relating to the ability of the Company to
perform its obligations hereunder and under the Notes as from time to time may
be reasonably requested by any such Holder of Notes.

     7.2. Officer's Certificate.

          Each set of financial statements delivered to a Holder of Notes
pursuant to Section 7.1(a) or Section 7.1(b) hereof shall be accompanied by a
certificate of a Senior Financial Officer setting forth a statement that such
officer has reviewed the relevant terms hereof and has made, or caused to be
made, under his or her supervision, a review of the transactions and conditions
of the Company and its Subsidiaries from the beginning of the quarterly or
annual period covered by the statements then being furnished to the date of the
certificate and that such review did not disclose the existence during such
period of any condition or event that constitutes a Default or

                                      10
<PAGE>

an Event of Default or, if any such condition or event existed or exists,
specifying the nature and period of existence thereof and what action the
Company shall have taken or proposes to take with respect thereto.

     7.3. Inspection.

          The Company shall permit the representatives of each Significant
Holder:

          (a)  No Default -- if no Default or Event of Default then exists, at
               ----------
the expense of such Significant Holder and upon reasonable prior notice to the
Company, to visit the principal executive office of the Company, to discuss the
affairs, finances and accounts of the Company and its Subsidiaries with the
Company's officers, and (with the consent of the Company, which consent will not
be unreasonably withheld) its independent public accountants, and (with the
consent of the Company, which consent will not be unreasonably withheld) to
visit the other offices and properties of the Company and each Subsidiary, all
at such reasonable times and as often as may be reasonably requested in writing;
and

          (b)  Default -- if a Default or Event of Default then exists, at the
               -------
expense of the Company to visit and inspect any of the offices or properties of
the Company or any Subsidiary, to examine all their respective books of account,
records, reports and other papers, to make copies and extracts therefrom, and to
discuss their respective affairs, finances and accounts with their respective
officers and independent public accountants (and by this provision the Company
authorizes said accountants to discuss the affairs, finances and accounts of the
Company and its Subsidiaries), all at such times and as often as may be
requested.

8.   PREPAYMENT OF THE NOTES.

     8.1. Optional Prepayments.

          To the extent not prohibited by the terms of the instruments governing
outstanding Senior Debt, the Company may, at its option, upon notice as provided
below, prepay at any time all, or from time to time any part of, the Notes, at
100% of the principal amount so prepaid, together with interest on the amount so
prepaid to the date of prepayment.  The Company will give each Holder of Notes
written notice of each optional prepayment under this Section 8.1 not less than
10 days and not more than 60 days prior to the date fixed for such prepayment.
Each such notice shall specify such date, the aggregate principal amount of the
Notes to be prepaid on such date, the principal amount of each Note held by such
Holder to be prepaid (determined in accordance with Section 8.2), and the
interest to be paid on the prepayment date with respect to such principal amount
being prepaid.

     8.2. Allocation of Partial Prepayments.

          In the case of each partial prepayment of the Notes, the principal
amount of the Notes to be prepaid shall be allocated among all of the Notes at
the time outstanding in proportion, as nearly as practicable, to the respective
unpaid principal amounts thereof not theretofore called for prepayment.

                                      11
<PAGE>

     8.3. Maturity; Surrender, etc.

          In the case of each prepayment of Notes pursuant to this Section 8,
the principal amount of each Note to be prepaid shall mature and become due and
payable on the date fixed for such prepayment, together with interest on such
principal amount accrued to such date.  From and after such date, unless the
Company shall fail to pay such principal amount when so due and payable,
together with the interest, as aforesaid, interest on such principal amount
shall cease to accrue.  Any Note paid or prepaid in full shall be surrendered to
the Company and cancelled and shall not be reissued, and no Note shall be issued
in lieu of any prepaid principal amount of any Note.

9.   SUBORDINATION OF SENIOR SUBORDINATED NOTES.

     9.1  Notes Subordinate to Senior Debt.

          The Company covenants and agrees, and each Holder of a Note, by its
acceptance thereof, likewise covenants and agrees, that, to the extent and in
the manner hereinafter set forth in this Section 9, all Note Payments (as
defined in Section 9.3) are hereby expressly made subordinate and subject in
right of payment to the prior payment in full in cash or other property
acceptable to the holders of the Senior Debt (or to have such payment duly
provided for in a manner satisfactory to the holders of said Senior Debt)
("moneys worth") of all Senior Debt of the Company.  The provisions of this
Section 9 shall continue to be effective or be reinstated, as the case may be,
if at any time any payment of any of the Senior Debt is rescinded or must
otherwise be returned by a holder of Senior Debt upon any Proceeding or
otherwise, all as though such payment had not been made.

     9.2  Payment Over of Proceeds Upon Dissolution, etc.

          (a)  In the event of (a) any insolvency or bankruptcy case or
proceeding, or any receivership, liquidation, reorganization or other similar
case or proceeding in connection therewith, relative to the Company or to its
creditors, as such, or to its assets, or (b) any liquidation, dissolution or
other winding up of the Company, whether voluntary or involuntary and whether or
not involving insolvency or bankruptcy, or (c) any assignment for the benefit of
creditors or any other marshaling of assets and liabilities of the Company, then
and in any such event specified in clause (a), (b) or (c) above (each such
event, if any, herein sometimes referred to as a "Proceeding") the holders of
Senior Debt shall be entitled to receive or retain payment in full in cash or
moneys worth of all amounts due or to become due on or in respect of all Senior
Debt (including any interest accruing on or after the filing of any Proceeding
relating to the Company, whether or not allowed in such Proceeding), before the
Holders of the Notes are entitled to receive any Note Payments of any kind or
character, whether in cash, property or securities, on account of principal of
or interest on or other obligations in respect of the Notes, and to that end the
holders of Senior Debt shall be entitled to receive, for application to the
payment thereof, any Note Payment which may be payable or deliverable in respect
of the Notes in any such Proceeding. The holders of Senior Debt are hereby
authorized to file an appropriate claim for and on behalf of the Holders if they
or any of them do not file, and there is not otherwise filed on behalf of the
Holders, a proper claim or proof of claim in the form required in

                                      12
<PAGE>

any such proceeding prior to 30 days before the expiration of the time to file
such claim or claims.

          (b)  In the event that, notwithstanding the foregoing provisions of
this Section 9.2, the Holder of any Note shall have received any Note Payment
before all Senior Debt of the Company is paid in full in cash or moneys worth,
then and in such event such Note Payment shall be paid over or delivered
forthwith to the Senior Debt Agent (or if no Indebtedness, commitments or
letters of credit are outstanding under the Senior Credit Facility, the holder
of the Senior Debt) for the application to the payment of all Senior Debt
remaining unpaid, to the extent necessary to pay the Senior Debt in full in cash
or moneys worth, after giving effect to any concurrent payment or distribution
to or for the holders of Senior Debt.

          (c)  For purposes of this Section 9, the term "Note Payment" means,
with respect to any Holder, any payment or distribution (whether direct or
indirect, whether in cash, property, securities, or otherwise, and whether
obtained or distributed by set-off, liquidation, bankruptcy distribution,
settlement, or otherwise) made by any Person (including, without limitation, any
payments or distributions made by any court or governmental body or agency, any
trustee in bankruptcy, or any liquidating trustee) with respect to any Note or
otherwise under this Note Purchase Agreement, including, without limitation,
payment of principal, premium, interest, or liquidated damages, if any, on the
Notes, any depositing of funds with any Holder or the Noteholder Representative
(including, without limitation, a deposit in respect of defeasance or
redemption), any payment on account of any optional or mandatory redemptions or
repurchase provisions, any payment or recovery on any claim under the Note
Purchase Agreement, any interest accruing on or after the filing of any
Proceeding relating to the Company (whether or not allowed in such Proceeding),
any Note, or relating to or arising out of the offer, sale, or purchase of any
Note (whether for rescission or damages and whether based on contract, tort,
duty imposed by law, or any other theory of liability); provided that, the term
"Note Payment," as used in this Section 9 shall not be deemed to include a
payment or distribution of stock or securities of the Company provided for by a
plan of reorganization or readjustment authorized by an order or decree of a
court of competent jurisdiction in a reorganization proceeding under any
applicable bankruptcy law or of any other corporation provided for by such plan
of reorganization or readjustment which stock or securities (x) are subordinated
in right of payment to all then outstanding Senior Debt to substantially the
same extent as, or to a greater extent than, the Notes are so subordinated as
provided in this Section 9 and (y) have been approved by the Senior Debt Agent
(including by acceptance or approval by the Senior Debt Agent of such plan of
reorganization or otherwise). The consolidation of the Company with, or the
merger of the Company into, another Person or the liquidation or dissolution of
the Company following the conveyance or transfer of all or substantially all of
its properties and assets as an entirety to another Person upon the terms and
conditions set forth in Section 11.2 shall not be deemed a Proceeding for the
purposes of this Section 9.2 if the Person formed by such consolidation or into
which the Company is merged or the Person which acquires by conveyance or
transfer such properties and assets, as the case may be, shall, as a part of
such consolidation, merger, conveyance or transfer, comply with the conditions
set forth in Section 11.2.

                                      13
<PAGE>

     9.3  No Payment When Senior Debt in Default.

          (a)  In the event that any Senior Payment Default (as defined below)
shall have occurred and be continuing, then no Note Payment shall be made unless
and until such Senior Payment Default shall have been cured or waived or shall
have ceased to exist or all amounts then due and payable in respect of Senior
Debt shall have been paid in full in cash or moneys worth.  "Senior Payment
Default" means any default in the payment of principal of (or premium, if any),
interest on, fees or other amounts owing in connection with any Designated
Senior Debt when due, whether at the due date of any such payment or by
declaration of acceleration, prepayment, call for redemption or otherwise.

          (b)  Upon the occurrence and during the continuance of a Senior
Nonmonetary Default (as defined below) and receipt of written notice by the
Noteholder Representative of the occurrence of such Senior Nonmonetary Default
from the Senior Debt Agent under the Senior Credit Facility (or, if no
Indebtedness, letters of credit or commitments under the Senior Credit Facility
remain outstanding, the designated representative of the holders of the Senior
Debt), no Note Payment shall be made during a period (the "Payment Blockage
Period") commencing on the date of the receipt by the Noteholder Representative
of such notice and ending the earlier of (i) the date on which such Senior
Nonmonetary Default shall have been cured or waived or ceased to exist or all
Designated Senior Debt which was the subject of such Senior Nonmonetary Default
shall have been paid in full in cash or moneys worth and (ii) the 179th day
                                                          --
after the date of the receipt of such notice. No Senior Nonmonetary Default that
existed or was continuing on the date of the commencement of a Payment Blockage
Period may be made the basis of the commencement of a subsequent Payment
Blockage Period whether or not within a period of 360 consecutive days, unless
such Senior Nonmonetary Default shall have been cured for a period of not less
than 90 consecutive days.  In any event, notwithstanding the foregoing, no more
than one Payment Blockage Period may be commenced during any 360-day period and
there shall be a period of at least 181 days during each 360-day period when no
Payment Blockage Period is in effect.  "Senior Nonmonetary Default" means the
occurrence or existence and continuance of an event of default with respect to
Designated Senior Debt, other than a Senior Payment Default, that permits the
holders of the Designated Senior Debt (or a trustee or other agent on behalf of
the holders thereof) then to declare such Designated Senior Debt due and payable
prior to the date on which it would otherwise become due and payable.

          (c) The failure to make any payment on the Notes by reason of the
provisions of this Section 9.3 will not be construed as preventing the
occurrence of an Event of Default with respect to the Notes arising from any
such failure to make payment.  Upon termination of any Payment Blockage Period
the Company shall resume making any and all required payments in respect of the
Notes, including any missed payments.

          (d) In the event that, notwithstanding the foregoing, any Holder shall
receive any Note Payment prohibited by the foregoing provisions of this Section
9.3, then in such event such Note Payment shall be paid over and delivered
forthwith to the Senior Debt Agent (or if no Indebtedness, letters of credit or
commitments are outstanding under the Senior Credit Facility, the holders of the
Senior Debt) in the same form received and, until so turned over, the same shall
be held in trust by such Holder as the property of the holders of the Senior
Debt.

                                      14
<PAGE>

          The provisions of this Section 9.3 shall not apply to any Note Payment
with respect to which Section 9.2 would be applicable.

     9.4  Payment Permitted If No Default.

          Nothing contained in this Section 9 or elsewhere in this Agreement or
in any of the Notes shall prevent the Company, at any time except during the
pendency of any Proceeding referred to in Section 9.2 or under the conditions
described in Section 9.3, from making Note Payments; provided, however, the
Company shall not make any voluntary prepayment on, or voluntarily redeem, the
Notes nor voluntarily advance the scheduled maturity date or any interest
payment date, or increase the interest rate, of the Notes, amend the financial
covenants of the Notes to make them more restrictive nor amend the subordination
provisions of the Notes, except (a) to the extent permitted under the Senior
Credit Facility, or (b) with the prior written consent of the Required Lenders
under the Senior Credit Facility (as defined therein) as long as the Senior
Credit Facility is in effect. The Required Holders (or in the event of an
acceleration under Section 13.1(c), each Holder electing to accelerate its Note)
shall give a written notice to the Senior Debt Agent under the Senior Credit
Facility (or, if no commitments under the Senior Credit Facility remain
outstanding, then to the designated representative of the holders of the Senior
Debt) of any declaration of acceleration of the notes at least five Business
Days in advance of the effectiveness of such declaration of acceleration;
provided, however, that all Senior Debt then due or thereafter declared to be
due shall first be paid in full before the Holders are entitled to receive any
payment from the Company of principal of, or interest on, the Notes, it being
understood that payments made to the Holders at a time when no Senior Debt is
due and payable shall not be deemed a violation of this proviso.

     9.5  Subrogation to Rights of Holders of Senior Debt.

          After the Senior Debt has been paid in full, and prior to the Notes
being paid in full, the Holders of the Notes shall be subrogated to the rights
of the holders of Senior Debt to receive payments and distributions of cash,
property and securities applicable to such Senior Debt (to the extent that
payments and distributions otherwise payable to the Holders have been applied to
payment of the Senior Debt). For purposes of such subrogation, no payments or
distributions to the holders of the Senior Debt of the Company of any cash,
property or securities to which the Holders of the Notes would be entitled
except for the provisions of this Section 9, and no payments pursuant to the
provisions of this Section 9 to the holders of Senior Debt by Holders of the
Notes, shall, as among the Company, its creditors other than holders of Senior
Debt and the Holders of the Notes, be deemed to be a payment or distribution by
the Company to or on account of the Senior Debt of the Company. For the purposes
of this Section 9, all obligations and Indebtedness now or hereafter existing
under any Senior Debt (including, without limitation, the Senior Credit
Facility, any Financial Hedge, or agreements with respect to the issuance of
letters of credit) shall not be deemed to have been paid in full unless the
holders thereof shall have received payment in full in cash and all commitments
or obligations thereunder and all letters of credit issued thereunder have
expired and all Financial Hedges have terminated.

                                      15
<PAGE>

     9.6  Provisions Solely to Define Relative Rights.

          The provisions of this Section 9 are and are intended solely for the
purpose of defining the relative rights of the Holders on the one hand and the
holders of Senior Debt on the other hand.  Nothing contained in this Section 9
or elsewhere in this Agreement or in the Notes is intended to or shall (a)
impair, as among the Company, its creditors other than holders of Senior Debt
and the Holders of the Notes, the obligation of the Company, which is absolute
and unconditional (and which, subject to the rights under this Section 9 of the
holders of Senior Debt, is intended to rank senior or equal to, as applicable,
all other general unsecured obligations of the Company), to pay to the Holders
of the Notes the principal of and interest on the Notes as and when the same
shall become due and payable in accordance with their terms; or (b) affect the
relative rights against the Company of the Holders of the Notes and creditors of
the Company other than the holders of Senior Debt; or (c) prevent the Holder of
any Note from exercising all remedies otherwise permitted by applicable law upon
default under this Agreement, subject to the rights, if any, under this Section
9 of the holders of Senior Debt to receive cash, property and securities
otherwise payable or deliverable to such Holder.

     9.7  No Waiver of Subordination Provisions.

          No right of any present or future holder of any Senior Debt to enforce
subordination as herein provided shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any act
or failure to act, in good faith, by any such holder, or by any noncompliance by
the Company with the terms, provisions and covenants of this Agreement,
regardless of any knowledge thereof any such holder may have or be otherwise
charged with.

     9.8  Reliance on Judicial Order or Certificate of Liquidating Agent.

          Upon any payment or distribution of assets or securities of the
Company referred to in this Section 9, the Holders of the Notes shall be
entitled to rely upon any order or decree entered by any court of competent
jurisdiction in which such Proceeding is pending, or a certificate of the
trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee for
the benefit of creditors, agent or other Person making such payment or
distribution, delivered to the Holders of Notes (so long as the existence of the
subordination provisions of Section 9 have been brought to the attention of such
court, trustee, receiver, liquidating trustee, custodian, assignee, agent, or
other Person), for the purpose of ascertaining the Persons entitled to
participate in such payment or distribution, the holders of the Senior Debt and
other Indebtedness of the Company, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Section 9.

     9.9  Reliance by Holders of Senior Debt on Subordination Provisions.

          Each Holder of a Note, by accepting such Note, acknowledges and agrees
that the foregoing subordination provisions are, and are intended to be, an
inducement and a consideration to each holder of any Senior Debt, whether such
Senior Debt was created or acquired before or after the issuance of the Note, to
acquire and continue to hold, or to continue to hold, such Senior Debt, and such
holder of such Senior Debt shall be deemed conclusively to

                                      16
<PAGE>

have relied on such subordination provisions in acquiring and continuing to
hold, or in continuing to hold, such Senior Debt and shall be deemed a third
party beneficiary hereof.

     9.10   Reinstatement.

            The provisions of this Section 9 shall continue to be effective or
be reinstated, and the Senior Debt shall not be deemed to be paid in full, as
the case may be, if at any time any payment of any of the Senior Debt is
rescinded or must otherwise be returned by the holder thereof upon the
insolvency, bankruptcy or reorganization of the Company or otherwise, all as
though such payment had not been made.

     9.11   Property Claims.

            No Holder of any Note shall have any claim to any property or assets
of the Company or any Subsidiary unless and until the Senior Debt shall have
been paid and/or satisfied.

     9.12   Acknowledgement of Certain Rights.

            Subject to the other provisions of this Agreement, the holders of
the Senior Debt may, at any time and from time to time, without the consent of
or notice to the Noteholder Representative or the Holders, without incurring
responsibility to the Holders, and without impairing or releasing the
subordination provided in Section 9, or the obligations hereunder of the Holders
to the holders of the Senior Debt, do any one or more of the following: (a)
change the manner, place, or terms of payment, or extend the time of payment of,
or renew or alter, Senior Debt or any instrument evidencing the same or any
agreement under which the Senior Debt is outstanding or secured; (b) sell,
exchange, release, or otherwise deal with any property pledged, mortgaged, or
otherwise securing the Senior Debt; (c) release any person liable in any manner
for the collection of the Senior Debt; and (d) exercise or refrain from
exercising any rights against the Company or any other Person.

10.  AFFIRMATIVE COVENANTS.

     The Company covenants that so long as any of the Notes are
outstanding:

     10.1.  Compliance with Law.

            The Company will and will cause each of its Subsidiaries to
comply with all laws, ordinances or governmental rules or regulations to which
each of them is subject, including, without limitation, Environmental Laws, and
will obtain and maintain in effect all licenses, certificates, permits,
franchises and other governmental authorizations necessary to the ownership of
their respective properties or to the conduct of their respective businesses, in
each case to the extent necessary to ensure that non-compliance with such laws,
ordinances or governmental rules or regulations or failures to obtain or
maintain in effect such licenses, certificates, permits, franchises and other
governmental authorizations would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

                                      17
<PAGE>

     10.2.  Insurance.

            The Company will and will cause each of its Subsidiaries to
maintain, with financially sound and reputable insurers, insurance with respect
to their respective properties and businesses against such casualties and
contingencies, of such types, on such terms and in such amounts (including
deductibles, co-insurance and self-insurance, if adequate reserves are
maintained with respect thereto) as is customary in the case of entities of
established reputations engaged in the same or a similar business and similarly
situated. Upon the request of a Significant Holder, the Company will furnish to
such Significant Holder summary information presented in reasonable detail
describing the insurance so carried and proof of such coverage.

     10.3.  Maintenance of Properties.

            The Company will and will cause each of its Subsidiaries to maintain
and keep, or cause to be maintained and kept, their respective properties in
good working order and condition (other than ordinary wear and tear), so that
the business carried on in connection therewith may be properly conducted at all
times, provided that this Section shall not prevent the Company or any
       --------
Subsidiary from discontinuing the operation and the maintenance of any of its
properties if such discontinuance is desirable in the conduct of its business
and the Company has concluded that such discontinuance would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.

     10.4.  Payment of Taxes and Claims.

            The Company will and will cause each of its Subsidiaries to file all
tax returns required to be filed in any jurisdiction and to pay and discharge
all taxes shown to be due and payable on such returns and all other taxes,
assessments, governmental charges, or levies imposed on them or any of their
properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent
and all claims for which sums have become due and payable that have or might
become a Lien on properties or assets of the Company or any Subsidiary, provided
                                                                        --------
that neither the Company nor any Subsidiary shall be required to have paid any
such tax or assessment or claims if the amount, applicability or validity
thereof is contested by the Company or such Subsidiary on a timely basis in good
faith and in appropriate proceedings, and the Company or a Subsidiary has
established adequate reserves or other provision therefor in accordance with
GAAP on the books of the Company or such Subsidiary.

     10.5.  Corporate Existence, etc.

            Subject to Section 11.2, the Company will at all times preserve and
keep in full force and effect its corporate existence and its good standing in
the jurisdiction of its organization and will qualify or maintain its
qualification to transact business in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the
failure to be so qualified would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.  Subject to Section
11.2, the Company will at all times preserve and keep in full force and effect
the corporate existence of each of its Subsidiaries (unless merged into the
Company or a Subsidiary) and all rights and franchises of the Company and its
Subsidiaries unless, in the

                                      18
<PAGE>

good faith judgment of the Company, the termination
of or failure to preserve and keep in full force and effect such corporate
existence, right or franchise would not, individually or in the aggregate, have
a Material Adverse Effect.

     10.6   Books and Records.

            The Company will keep, and will cause each of its Subsidiaries to
keep, proper books of record and account in conformity with GAAP in which true
and complete entries shall be made of all dealings and transactions in relation
to its business and activities.

11.  NEGATIVE COVENANTS.

     The Company covenants that so long as any of the Notes are outstanding:

     11.1.  Incurrence of Indebtedness.

            The Company shall not, and shall not permit any of its Subsidiaries
to, directly or indirectly, create, incur, assume, guarantee, acquire, become
liable, contingently or otherwise, with respect to, or otherwise become
responsible for payment of (collectively, "Incur"), any Indebtedness, except:

            (a)  that the Company and its Subsidiaries may (i) borrow, repay and
reborrow funds available under the Senior Credit Facility in an aggregate
principal amount of $125,000,000 (or $175,000,000 if the Revolver Commitment (as
defined in the Senior Credit Facility) has been increased to such amount in
accordance with Section 11.1(c)) and (ii) enter into an interest rate swap in
the notional amount of $50,000,000 for the purpose of replacing or covering
Financial Hedges of a like notional amount in existence on the date of this
Agreement;

            (b)  Indebtedness Incurred under this Agreement and the Notes;

            (c)  if no Default or Event of Default shall have occurred and be
continuing at the time of or as a consequence of the Incurrence of any such
Indebtedness, the Company or any of its Subsidiaries may Incur additional Senior
Debt not expressly permitted by another clause of this Section 11.1 if on the
date of the Incurrence of such Senior Debt, after giving effect to the
Incurrence thereof, the ratio of the Company's Total Indebtedness to EBITDA for
the four most recently completed fiscal quarters of the Company is not greater
than 5.0 to 1.0; provided, however, that so long as one or more trusts
                 --------  -------
established for the benefit of the descendants of Adolph Coors, or one or more
entities wholly owned by such trusts, hold 100% in aggregate principal amount of
the Notes at the time outstanding, any such Incurrence shall require the prior
written consent of the Required Holders; and provided further, that any increase
                                             -------- -------
in the Revolver Commitment up to an aggregate principal amount of $175,000,000
shall be deemed to be an Incurrence of the entire amount of such increase at the
time such increase becomes effective and thereafter the Company and its
Subsidiaries may borrow, repay and reborrow funds available under the Senior
Credit Facility, as so increased, and such borrowings, repayments and
reborrowings will not be deemed to be separate Incurrences of Indebtedness for
purposes of this Section 11.1;

                                      19
<PAGE>

          (d) existing Indebtedness as described in Schedule 5.15, together with
all renewals, extensions, amendments, modifications, and refinancings thereof,
so long as (i) the principal amount of any refinanced Indebtedness shall not
            -
exceed the principal amount of the Indebtedness being refinanced immediately
prior to giving effect to any such refinancing; and (ii) no Default or Event of
                                                     --
Default exists or arises as a result of any such renewal, extension, amendment,
modification, or refinancing;

          (e) endorsements of checks, obligations in respect of overdrafts,
current accounts payable or accrued or other current liabilities incurred by the
Company or a Subsidiary in the ordinary course of business;

          (f) if no Default or Event of Default shall have occurred and be
continuing at the time of or as a consequence of the Incurrence, the Company or
any of its Subsidiaries may Incur Acquired Indebtedness that is Senior Unsecured
Debt or Subordinated Debt so long as (i) the aggregate amount of such Acquired
                                      -
Indebtedness (together with any and all amendments, modifications, or
refinancings thereof) does not exceed $35,000,000, (ii) the principal amount of
                                                    --
any such Acquired Indebtedness shall not be increased by any renewal, extension,
amendment, modification, or refinancing thereof (unless such increased amount is
otherwise permitted to be incurred in compliance with Section 11.1(k)) and (iii)
                                                                            ---
such Indebtedness was not created in contemplation of such acquisition, merger
or consolidation;

          (g) Debt of the Company or any Subsidiary (other than a Foreign
Subsidiary) owed to any other Subsidiary (other than a Foreign Subsidiary) or
the Company, as applicable;

          (h) Contingent liabilities of the Company or any Subsidiary for any
Indebtedness of any other Subsidiary or the Company, as applicable;

          (i) Indebtedness of any Foreign Subsidiary owed to the Company or any
Subsidiary or any contingent liabilities of the Company or any Subsidiary with
respect to the Indebtedness of any Foreign Subsidiary, so long as such loans or
contingent obligations are subordinated and junior in right of payment to the
Notes on terms and provisions which are no more favorable to the holders of such
Indebtedness than the terms and provisions of Section 9 are to you;

          (j) Indebtedness Incurred by the Company or any Subsidiary for the
purpose of financing all or any part of the cost of any asset (including Capital
Leases and renewals, extensions, amendments, and modifications of such
Indebtedness), so long as (i) the aggregate amount of such Indebtedness
                           -
(together with any and all amendments, modifications, or refinancings thereof)
does not exceed $20,000,000, and (ii) no Default or Event of Default shall have
                                  --
occurred and be continuing at the time of or as a consequence of the Incurrence;
and

          (k) Indebtedness of the Company or any Subsidiary not otherwise
permitted by this Section 11.1, so long as such Indebtedness does not exceed in
the aggregate $20,000,000.

          With respect to the request by the Company or any Subsidiary to Incur
additional Senior Debt pursuant to Section 11.1(c), the Company shall submit a
request for such Incurrence to the Noteholder Representative signed by a
Responsible Officer, which request shall include the certification of such
Responsible Officer stating that (i) no Default or Event of Default has occurred
                                  -
and is continuing or will occur after giving effect to such Incurrence and (ii)
such

                                      20
<PAGE>

Incurrence, after giving effect thereto, will not cause the ratio of the
Company's Total Indebtedness to EBITDA for the four most recently completed
fiscal quarters of the Company to exceed 5.0 to 1.0, together with confirming
calculations therefor.

          Promptly upon the Incurrence by the Company or any Subsidiary of any
Senior Debt after the Closing, the Company will provide the Noteholder
Representative with written notice of the Incurrence of such Senior Debt, which
notice shall include (x) a copy of the executed agreement or other instrument
(with all exhibits and schedules) pursuant to which such Senior Debt was
incurred, (y) a certificate of a Responsible Officer confirming that such Senior
Debt was incurred within all applicable limitations in this Agreement and (z) a
list of the names and addresses of all holders of such Senior Debt.

          Accrual of interest, accretion or amortization of original issue
discount, the payment of interest on any Indebtedness in the form of additional
Indebtedness with the same terms, and the payment of dividends on Disqualified
Capital Stock in the form of additional shares of the same class of Disqualified
Capital Stock will not be deemed to be an Incurrence of Indebtedness for
purposes of this Section 11.1. Furthermore, the creation of any Guaranties (or
reimbursement obligations with respect to letters of credit), shall not be
deemed to be an Incurrence of Indebtedness to extent that the Incurrence of the
principal amount of the Indebtedness so guaranteed complies with the provisions
of this Section 11.1.

   11.2.  Merger, Consolidation, Sale of Assets.

          (a)  The Company shall not consolidate with or merge with any other
corporation or convey, transfer or lease substantially all of its assets in a
single transaction or series of related transactions to any Person unless:

               (i)  the successor formed by such consolidation or the survivor
of such merger or the Person that acquires by conveyance, transfer or lease
substantially all of the assets of the Company as an entirety, as the case may
be, shall be a solvent corporation organized and existing under the laws of the
United States or any State thereof (or the District of Columbia), and, if the
Company is not such corporation, (i) such corporation shall have executed and
                                  -
Agreement and the Notes and (ii) shall have caused to be delivered to each
                             --
Holder of any Notes an opinion of nationally recognized independent counsel, or
other independent counsel reasonably satisfactory to the Required Holders, to
the effect that all agreements or instruments effecting such assumption are
enforceable in accordance with their terms and comply with the terms hereof; and

               (ii) immediately after giving effect to such transaction, no
Default or Event of Default shall have occurred and be continuing.

No such conveyance, transfer or lease of substantially all of the assets of the
Company shall have the effect of releasing the Company or any successor
corporation that shall theretofore have become such in the manner prescribed in
this Section 11.2 from its liability under this Agreement or the Notes.

                                      21
<PAGE>

          (b)  The Company shall not, and shall not permit any Subsidiary to,
sell, lease or otherwise dispose of any of the assets of the Company or its
Subsidiaries constituting less than substantially all of the Company's assets
other than (i) sales of inventory in the ordinary course of business, (ii) the
            -                                                          --
sale, discount, or transfer of delinquent accounts receivable in the ordinary
course of business for purposes of collection, (iii) occasional sales of
                                                ---
immaterial assets for consideration not less than the fair market value thereof,
(iv) dispositions of obsolete assets, (v) sales, leases or other dispositions
 --                                    -
among the Company and its Subsidiaries, and (vi) if no Default or Event of
                                             --
Default then exists or arises as a result thereof, sales, leases or other
dispositions of assets other than those in clauses (i) through (v) for fair
market value; provided, that with respect to clause (vi) of this Section
11.2(b), (x) if the fair market value of the assets sold, leased or otherwise
          -
disposed of is equal to or greater than $10,000,000, the board of directors of
the Company or the applicable Subsidiary has determined in good faith that the
consideration received in such sale, lease or other disposition is at least
equivalent to the fair market value and (y) unless the fair market value of the
                                         -
assets so sold, leased or otherwise disposed of is less than $10,000,000, cash
shall constitute at least 50% of the total consideration received by the Company
or the applicable Subsidiary in respect of the sale, lease or other disposition
of the assets.

   11.3.  Liens.

          The Company shall not, and shall not permit any Subsidiary to,
directly or indirectly, create, incur, assume or permit or suffer to exist any
Lien, or file or execute or agree to the execution of any financing statement or
deed of trust, on or with respect to any property (including any document or
instrument in respect of goods or accounts receivable) of the Company or any
Subsidiary, whether now owned or hereafter acquired, or any income or profits
therefrom except:

               (a)  Liens created in favor of the Company or a Subsidiary;

               (b)  Liens in favor of the holders of the Senior Debt (including
Senior Debt comprised of liabilities in respect of Capital Leases) or permitted
under the terms of the Senior Debt;

               (c)  Liens identified on Schedule 11.3, and Liens to secure
replacements, extensions and renewals of the Indebtedness or other obligations
secured by such Liens only if (i) the principal amount of the Indebtedness or
                               -
other obligation secured thereby is not increased, and (ii) such Lien does not
                                                        --
extend to any property not previously subject thereto;

               (d)  Liens in respect of Indebtedness constituting purchase money
security interests provided that such Liens attach solely to the property
acquired or purchased concurrently with such acquisition or purchase;

               (e)  deposits to secure payment of workers' compensation,
unemployment insurance, pensions or other social security obligations, in the
ordinary course of business of the Company or any Subsidiary and not related to
borrowed money or credit extended;

               (f)  Liens (i) securing any judgment, award or order that does
                           -
not constitute an Event of Default, (ii) arising in the ordinary course of
                                     --
business (including

                                      22
<PAGE>

easements and similar encumbrances) by operation of law that are not related to
borrowed money or credit extended and (iii) arising in connection with claims,
                                       ---
the payment of which is not at the time required by Section 10.4, but in the
case of (i), (ii) and (iii) only if such Liens do not individually or in the
aggregate materially interfere with the conduct of the business of the Company
or any of its Subsidiaries and would not individually or in the aggregate
reasonably be expected to have a Material Adverse Effect;

               (g)  deposits to secure the performance of statutory obligations
and other obligations of a like nature incurred in the ordinary course of
business;

               (h)  Liens securing Indebtedness assumed as part of a merger or
acquisition of assets permitted by Section 11.2; and

               (i)  financing statements filed as notices with respect to any
property leased by the Company under an operating lease.

    11.4. Restricted Payments.

          The Company shall not, and shall not permit any Subsidiary to,
directly or indirectly, declare, order, pay, make or set apart any sum for, any
Subordinated Debt or any other Restricted Junior Payment, except that if no
Default or Event of Default has occurred or is continuing or would result
therefrom, the Company may make payments on Subordinated Debt in accordance with
the terms of any indenture, note or agreement governing the Subordinated Debt,
provided, that at the time of any such payment, payment is permitted in
accordance with the provisions of the Senior Credit Facility and the Note
Purchase Agreement. Notwithstanding the foregoing, the Company shall not, nor
shall the Company permit any Subsidiary to, in any event, deposit any funds for
the purpose of making any Restricted Junior Payment with a trustee, paying agent
or registrar or other payment intermediary more than 25 Business Days prior to
the date such payment is due.

    11.5. No Public Offering of Notes.

          The Company agrees that neither it, nor anyone acting on its behalf,
will offer the Notes so as to bring the issuance and sale of the Notes within
the provisions of Section 5 of the Securities Act nor offer any similar
securities for issuance or sale to, or solicit any offer to acquire any of the
same from, or otherwise approach or negotiate with respect thereto with, anyone
if the sale of the Notes would be integrated as a single offering for the
purposes of the Securities Act.

12. EVENTS OF DEFAULT.

    An "Event of Default" shall exist if any of the following conditions or
events shall occur and be continuing:

          (a)  the Company defaults in the payment of any principal on any Note
after the same becomes due and payable; or

          (b)  the Company defaults in the payment of any interest on any Note
for more than five Business Days after the same becomes due and payable; or

                                      23
<PAGE>

          (c)  the Company defaults in the performance of or compliance with any
term contained in Sections 11.1 and 11.2; or

          (d)  the Company defaults in the performance of or compliance with
Sections 11.3, 11.4 and 11.5 and such default continues without cure for 20
Business Days; or

          (e)  the Company defaults in the performance of or compliance with any
term contained herein (other than those referred to in paragraphs (a), (b), (c)
and (d) of this Section 12) and such default is not remedied within 30 days
after the earlier of (i) a Responsible Officer obtaining actual knowledge of
                      -
such default and (ii) the Company receiving written notice of such default
                  --
from any Holder of a Note (any such written notice to be identified as a "notice
of default" and to refer specifically to this paragraph (e) of Section 12); or

          (f)  the Company (i) defaults in the payment of any principal or
                            -
interest (following the expiration of any applicable notice, cure or grace
periods), whether upon acceleration or otherwise, due in respect of any Senior
Debt or (ii) fails to perform or observe any obligation, agreement, covenant,
         --
term or condition contained in the Senior Credit Facility or any other document,
agreement or instrument representing or documenting Senior Debt or any other
document, agreement or instrument entered into pursuant to or in connection with
the Senior Credit Facility or such Senior Debt (following the expiration of any
applicable notice, cure or grace periods contained therein), and, in the case of
either clause (i) or (ii) above, as a consequence of such default or condition
such Senior Debt has become, or has been declared due and payable in an amount
exceeding $10,000,000 before its stated maturity or before its regularly
scheduled dates of payment; or

          (g) any representation or warranty made in writing by or on behalf of
the Company or by any officer of the Company in this Agreement or in any writing
furnished in connection with the transactions contemplated hereby proves to have
been false or incorrect in any material respect on the date as of which made; or

          (h) (i) the Company or any Subsidiary is in default (as principal or
               -
as guarantor or other surety) in the payment of any principal of or premium or
make-whole amount or interest on any outstanding Indebtedness (other than Senior
Debt), or (ii) the Company or any Subsidiary is in default in the performance of
           --
or compliance with any term (other than a payment term) of any evidence of any
Indebtedness (other than Senior Debt) or of any mortgage, indenture or other
agreement relating thereto or any other condition exists, and (iii) in the case
                                                               ---
of either clause (i) or (ii), as a consequence of the occurrence or continuation
of any event or condition, the Company or any Subsidiary has become obligated to
purchase such Indebtedness, or such Indebtedness has become, or been declared,
due and payable, before its regular maturity or before its regularly scheduled
dates of payment in an aggregate outstanding principal amount of at least
$10,000,000; or

          (i) the Company or any Subsidiary (i) is generally not paying, or
                                             -
admits in writing its inability to pay, its debts as they become due, (ii)
                                                                       --
files, or consents by answer or otherwise to the filing against it of, a
petition for relief or reorganization or arrangement or any other petition in
bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency,
reorganization, moratorium or other similar law of any jurisdiction, (iii) makes
                                                                      ---
an assignment for the benefit of its creditors, (iv) consents to the appointment
                                                 --
of a custodian, receiver, trustee or other

                                      24
<PAGE>

officer with similar powers with respect to it or with respect to any
substantial part of its property, (v) is adjudicated as insolvent or to be
                                   -
liquidated, or (vi) takes corporate action for the purpose of any of the
                --
foregoing; or

          (j)  a court or Governmental Authority of competent jurisdiction
enters an order appointing, without consent by the Company or any of its
Subsidiaries, a custodian, receiver, trustee or other officer with similar
powers with respect to it or with respect to any substantial part of its
property, or constituting an order for relief or approving a petition for relief
or reorganization or any other petition in bankruptcy or for liquidation or to
take advantage of any bankruptcy or insolvency law of any jurisdiction, or
ordering the dissolution, winding-up or liquidation of the Company or any of its
Subsidiaries, or any such petition shall be filed against the Company or any of
its Subsidiaries and such petition shall not be dismissed within 60 days; or

          (k)  a final judgment or judgments for the payment of money not
covered by insurance aggregating in excess of $10,000,000 are rendered against
one or more of the Company and its Subsidiaries and which judgments are not,
within 45 days after entry thereof, bonded, discharged or stayed pending appeal,
or are not discharged within 45 days after the expiration of such stay.

13. REMEDIES ON DEFAULT, ETC.

    13.1. Acceleration.

          (a)  If an Event of Default with respect to the Company described in
paragraph (i) or (j) of Section 12 (other than an Event of Default described in
clause (i) of paragraph (i) or described in clause (vi) of paragraph (i) by
virtue of the fact that such clause encompasses clause (i) of paragraph (i)) has
occurred, all the Notes then outstanding shall automatically become immediately
due and payable.

          (b)  Subject to the written notice required by Section 9.4, if any
Event of Default described in paragraphs (c), (d), (e), (f), (g), (h) or (k), or
in the clauses of paragraph (i) excluded from the acceleration provisions of
Section 13.1(a), of Section 12 has occurred and is continuing, any Holder or
Holders of more than 50% in principal amount of the Notes at the time
outstanding may at any time at its or their option, by notice or notices to the
Company, declare all the Notes and any accrued and unpaid interest thereon then
outstanding to be immediately due and payable.

          (c)  Subject to the written notice required by Section 9.4, if any
Event of Default described in paragraph (a) or (b) of Section 12 has occurred
and is continuing, any Holder or Holders of more than 25% in principal amount of
the Notes at the time outstanding affected by such Event of Default may at any
time, at its or their option, by notice or notices to the Company, declare all,
but not less than all, the Notes and any accrued and unpaid interest thereon
held by all Holders to be immediately due and payable.

          (d)  Upon any Notes becoming due and payable under this Section 13.1,
whether automatically or by declaration, such Notes will forthwith mature and
the entire unpaid principal amount of such Notes, plus all accrued and unpaid
interest thereon shall all be immediately due and payable, in each and every
case without presentment, demand, protest or further notice, all of which are
hereby waived.

                                      25
<PAGE>

    13.2. Other Remedies.

          If any Default or Event of Default has occurred and is continuing, and
irrespective of whether any Notes have become or have been declared immediately
due and payable under Section 13.1, the Holder or Holders of more than 25% in
principal amount of the Notes at the time outstanding may cause all (but not
less than all) Holders, and all such Holders shall be required, to proceed to
protect and enforce their rights as Holders by an action at law, suit in equity
or other appropriate proceeding, whether for the specific performance of any
agreement contained herein or in any Note, or for an injunction against a
violation of any of the terms hereof or thereof, or in aid of the exercise of
any power granted hereby or thereby or by law or otherwise. Notwithstanding the
preceding sentence, no Holder shall be permitted to proceed to protect and
enforce its rights as Holder pursuant to this Section 13.2 if the Required
Holders prohibit the taking of such action by written notice to all other
Holders.

    13.3. Rescission.

          At any time after any Notes have been declared due and payable
pursuant to clause (b) or (c) of Section 13.1, the Required Holders, by written
notice to the Company, may rescind and annul any such declaration and its
consequences, provided that (a) the Company has paid all overdue interest on the
              --------       -
Notes, all principal on any Notes that are due and payable and are unpaid other
than by reason of such declaration, and all interest on such overdue principal
and (to the extent permitted by applicable law) any overdue interest in respect
of the Notes at the Default Rate, (b) all Events of Default and Defaults, other
                                   -
than non-payment of amounts that have become due solely by reason of such
declaration, have been cured or have been waived pursuant to Section 18, and (c)
                                                                              -
no judgment or decree has been entered for the payment of any monies due
pursuant hereto or to the Notes. No rescission and annulment under this Section
13.3 will extend to or affect any subsequent Event of Default or Default or
impair any right consequent thereon.

    13.4. No Waivers or Election of Remedies, Expenses, etc.

          No course of dealing and no delay on the part of any Holder of any
Note in exercising any right, power or remedy shall operate as a waiver thereof
or otherwise prejudice such Holder's rights, powers or remedies. No right, power
or remedy conferred by this Agreement or by any Note upon any Holder thereof
shall be exclusive of any other right, power or remedy referred to herein or
therein or now or hereafter available at law, in equity, by statute or
otherwise. Without limiting the obligations of the Company under Section 16, the
Company will pay to the Holder of each Note on demand such further amount as
shall be sufficient to cover all costs and expenses of such Holder incurred in
any enforcement or collection under this Section 13, including, without
limitation, reasonable attorneys' fees, expenses and disbursements.

14. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

    14.1. Registration of Notes.

          The Company shall keep at its principal executive office a register
for the registration and registration of transfers of Notes.  The name and
address of each Holder of one or more Notes, each transfer thereof and the name
and address of each transferee of one or more Notes shall be registered in such
register.  Prior to due presentment for registration of transfer, the Person

                                      26
<PAGE>

in whose name any Note shall be registered shall be deemed and treated as the
owner and Holder thereof for all purposes hereof, and the Company shall not be
affected by any notice or knowledge to the contrary.

    14.2. Transfer and Exchange of Notes.

          Upon surrender of any Note at the principal executive office of the
Company for registration of transfer or exchange (and in the case of a surrender
for registration of transfer, duly endorsed or accompanied by a written
instrument of transfer duly executed by the registered Holder of such Note or
his attorney duly authorized in writing and accompanied by the information
specified in Schedule A for each transferee of such Note or part thereof), the
Company shall execute and deliver, at the Company's expense (except as provided
below), one or more new Notes (as requested by the Holder thereof) in exchange
therefor, in an aggregate principal amount equal to the unpaid principal amount
of the surrendered Note. Each such new Note shall be payable to such Person as
such Holder may request and shall be substantially in the form of Exhibit 1.
Each such new Note shall be dated and bear interest from the date to which
interest shall have been paid on the surrendered Note or dated the date of the
surrendered Note if no interest shall have been paid thereon. The Company may
require payment of a sum sufficient to cover any stamp tax or governmental
charge imposed in respect of any such transfer of Notes. Notes shall not be
transferred in denominations of less than $1,000,000, provided that if necessary
                                                      --------
to enable the registration of transfer by a Holder of its entire holding of
Notes, one Note may be in a denomination of less than $1,000,000. Any
transferee, by its acceptance of a Note registered in its name (or the name of
its nominee), shall be deemed to have (i) agreed to the confidentiality
                                       -
provisions set forth in Section 20, (ii) agreed to the subordination provision
                                     --
set forth in Section 9, and (iii) made the representation set forth in Section
                             ---
6.

    14.3. Replacement of Notes.

          Upon receipt by the Company of evidence reasonably satisfactory to it
of the ownership of and the loss, theft, destruction or mutilation of any Note,
and

          (a)  in the case of loss, theft or destruction, of indemnity
reasonably satisfactory to it (provided that if the Holder of such Note is, or
                               --------
is a nominee for, an original purchaser of a Note or another Holder of a Note
with a minimum net worth equal to the greater of $50,000,000 and the face amount
of such lost, stolen or destroyed Note, such Person's own unsecured agreement of
indemnity shall be deemed to be satisfactory), or

          (b)  in the case of mutilation, upon surrender and cancellation
thereof, the Company at its own expense shall execute and deliver, in lieu
thereof, a new Note, dated and bearing interest from the date to which interest
shall have been paid on such lost, stolen, destroyed or mutilated Note or dated
the date of such lost, stolen, destroyed or mutilated Note if no interest shall
have been paid thereon.

                                      27
<PAGE>

15. PAYMENTS ON NOTES.

    15.1. Place of Payment.

          Subject to Section 15.2, payments of principal and interest becoming
due and payable on the Notes shall be made in Golden, Colorado at the principal
office of the Company in such jurisdiction. The Company may at any time, by
notice to each Holder of a Note, change the place of payment of the Notes so
long as such place of payment shall be either the principal office of the
Company in such jurisdiction or the principal office of a bank or trust company
in such jurisdiction.

    15.2. Home Office Payment.

          So long as you or your nominee shall be the Holder of any Note, and
notwithstanding anything contained in Section 15.1 or in such Note to the
contrary, the Company will pay all sums becoming due on such Note for principal
and interest, whether at the rate stated in clause (a) of the first paragraph of
such Note or at the Default Rate, by the method and at the address specified for
such purpose below your name in Schedule A, or by such other method or at such
other address as you shall have from time to time specified to the Company in
writing for such purpose, without the presentation or surrender of such Note or
the making of any notation thereon, except that upon written request of the
Company made concurrently with or reasonably promptly after payment or
prepayment in full of any Note, you shall surrender such Note for cancellation,
reasonably promptly after any such request, to the Company at its principal
executive office or at the place of payment most recently designated by the
Company pursuant to Section 15.1. Prior to any sale or other disposition of any
Note held by you or your nominee you will, at your election, either endorse
thereon the amount of principal paid thereon and the last date to which interest
has been paid thereon or surrender such Note to the Company in exchange for a
new Note or Notes pursuant to Section 14.2.

16. EXPENSES, ETC.

    16.1. Transaction Expenses.

          Whether or not the transactions contemplated hereby are consummated,
the Company will pay all costs and expenses (including reasonable attorneys'
fees of a special counsel and, if reasonably required, local or other counsel)
incurred by you in connection with such transactions and in connection with any
amendments, waivers or consents under or in respect of this Agreement or the
Notes (whether or not such amendment, waiver or consent becomes effective),
including, without limitation: (a) the costs and expenses incurred in enforcing
                                -
or defending (or determining whether or how to enforce or defend) any rights
under this Agreement or the Notes or in responding to any subpoena or other
legal process or informal investigative demand issued in connection with this
Agreement or the Notes, or by reason of being a Holder of any Note, and (b) the
                                                                         -
costs and expenses, including financial advisors' fees, incurred in connection
with the insolvency or bankruptcy of the Company or any Subsidiary or in
connection with any work-out or restructuring of the transactions contemplated
hereby and by the Notes. Notwithstanding the preceding sentence, the Company
shall not be required to pay after Closing any attorneys' fees, charges or
disbursements of your special counsel to the extent such special counsel has not
provided

                                      28
<PAGE>

a statement thereof to the Company (in accordance with Section 19) on or prior
to the date that is thirty (30) days after the Closing. The Company will pay,
and will save you and each other Holder of a Note harmless from, all claims in
respect of any fees, costs or expenses if any, of brokers and finders (other
than those retained by you).

    16.2. Survival.

          The obligations of the Company under this Section 16 will survive the
payment or transfer of any Note, the enforcement, amendment or waiver of any
provision of this Agreement or the Notes, and the termination of this Agreement.

17. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

    All representations and warranties contained herein shall survive the
execution and delivery of this Agreement and the Notes, the purchase or transfer
by you of any Note or portion thereof or interest therein and the payment of any
Note, and may be relied upon by any subsequent Holder of a Note, regardless of
any investigation made at any time by or on behalf of you or any other Holder of
a Note. All statements contained in any certificate or other instrument
delivered by or on behalf of the Company pursuant to this Agreement shall be
deemed representations and warranties of the Company under this Agreement.
Subject to the preceding sentence, this Agreement and the Notes embody the
entire agreement and understanding between you and the Company and supersede all
prior agreements and understandings relating to the subject matter hereof.

18. AMENDMENT AND WAIVER.

    18.1. Requirements.

          This Agreement and the Notes may be amended, and the observance of any
term hereof or of the Notes may be waived (either retroactively or
prospectively), with (and only with) the written consent of the Company and the
Required Holders, except that (a) no amendment or waiver of any of the
                               -
provisions of Section 1, 2, 3, 4, 5, 6 or 20 hereof, or any defined term (as it
is used therein), will be effective as to you unless consented to by you in
writing, and (b) no such amendment or waiver may, without the written consent of
              -
the Holder of each Note at the time outstanding affected thereby, (i) subject to
                                                                   -
the provisions of Section 13 relating to acceleration or rescission, change the
amount or time of any prepayment or payment of principal of, or reduce the rate
or change the time of payment or method of computation of interest on, the
Notes, (ii) change the percentage of the principal amount of the Notes the
        --
Holders of which are required to consent to any such amendment or waiver, or
(iii) amend any of Sections 8, 12(a), 12(b), 13, 18 or 20.
----

    18.2. Solicitation of Holders of Notes.

          (a)  Solicitation. The Company will provide each Holder of the Notes
               ------------
(irrespective of the amount of Notes then owned by it) with sufficient
information, sufficiently far in advance of the date a decision is required, to
enable such Holder to make an informed and considered decision with respect to
any proposed amendment, waiver or consent in respect of any of the provisions
hereof or of the Notes. The Company will deliver executed or true and correct
copies of each amendment, waiver or consent effected pursuant to the provisions
of this Section 18 to each

                                      29
<PAGE>

Holder of outstanding Notes promptly following the date on which it is executed
and delivered by, or receives the consent or approval of, the requisite Holders
of Notes.

          (b)  Payment. The Company will not directly or indirectly pay or cause
               -------
to be paid any remuneration, whether by way of supplemental or additional
interest, fee or otherwise, or grant any security, to any Holder of Notes as
consideration for or as an inducement to the entering into by any Holder of
Notes or any waiver or amendment of any of the terms and provisions hereof
unless such remuneration is concurrently paid, or security is concurrently
granted, on the same terms, ratably to each Holder of Notes then outstanding
even if such Holder did not consent to such waiver or amendment.

    18.3. Binding Effect, etc.

          Any amendment or waiver consented to as provided in this Section 18
applies equally to all Holders of Notes and is binding upon them and upon each
future Holder of any Note and upon the Company without regard to whether such
Note has been marked to indicate such amendment or waiver. No such amendment or
waiver will extend to or affect any obligation, covenant, agreement, Default or
Event of Default not expressly amended or waived or impair any right consequent
thereon. No course of dealing between the Company and the Holder of any Note nor
any delay in exercising any rights hereunder or under any Note shall operate as
a waiver of any rights of any Holder of such Note. As used herein, the term
"this Agreement" and references thereto shall mean this Agreement as it may from
time to time be amended or supplemented.

    18.4. Notes held by Company, etc.

          Solely for the purpose of determining whether the Holders of the
requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under this
Agreement or the Notes, or have directed the taking of any action provided
herein or in the Notes to be taken upon the direction of the Holders of a
specified percentage of the aggregate principal amount of Notes then
outstanding, Notes directly or indirectly owned by the Company or any of its
Affiliates shall be deemed not to be outstanding.

19. NOTICES.

    All notices and communications provided for hereunder shall be in writing
and sent (a) by telecopy if the sender on the same day sends a confirming copy
          -
of such notice by a recognized overnight delivery service (charges prepaid), or
(b) by registered or certified mail with return receipt requested (postage
 -
prepaid), or (c) by a recognized overnight delivery service (with charges
              -
prepaid).  Any such notice must be sent:

          (i)  if to you or your nominee, to you or it at the address specified
for such communications in Schedule A, or at such other address as you or it
shall have specified to the Company in writing,

          (ii) if to any other Holder of any Note, to such Holder at such
address as such other Holder shall have specified to the Company in writing, or

                                      30
<PAGE>

          (iii)  if to the Company, to the Company at the address of its
principal office in Golden, Colorado to the attention of Chief Financial
Officer, or at such other address as the Company shall have specified to the
Holder of each Note in writing.

     Notwithstanding any other provision of this Section 19 to the contrary, any
notice to be sent to a Holder hereunder by the Senior Debt Agent (or the
designated representative of the holders of the Senior Debt, if applicable)
shall be in writing and shall be sent via any delivery method permitted by this
Section 19 only to the Noteholder Representative.

     All notices under this Section 19 will be deemed given only when actually
received, and confirmation of any notice or communication sent as provided in
clause (a), (b) or (c) above obtained from the appropriate delivery service or
the United State Postal Service, as the case may be, shall conclusively
establish the date of the actual receipt of such notice.

20.  CONFIDENTIAL INFORMATION.

     For the purposes of this Section 20, "Confidential Information" means
information delivered to you by or on behalf of the Company or any Subsidiary in
connection with the transactions contemplated by or otherwise pursuant to this
Agreement that is proprietary in nature and that was clearly marked or labeled
or otherwise adequately identified when received by you as being confidential
information of the Company or such Subsidiary, provided that such term does not
                                               --------
include information that (a) was publicly known or otherwise known to you prior
                          -
to the time of such disclosure, (b) subsequently becomes publicly known through
                                 -
no act or omission by you or any person acting on your behalf, (c) otherwise
                                                                -
becomes known to you other than through disclosure by the Company or any
Subsidiary or (d) constitutes financial statements delivered to you under
               -
Section 7.1 that are otherwise publicly available.  You will maintain the
confidentiality of such Confidential Information in accordance with procedures
adopted by you in good faith to protect confidential information of third
parties delivered to you, provided that you may deliver or disclose Confidential
                          --------
Information to (i) your directors, officers, employees, agents, attorneys and
                -
affiliates (to the extent such disclosure reasonably relates to the
administration of the investment represented by your Notes), (ii) your financial
                                                              --
advisors and other professional advisors who agree to hold confidential the
Confidential Information substantially in accordance with the terms of this
Section 20, (iii) any federal or state regulatory authority having jurisdiction
             ---
over you, or (iv) any other Person to which such delivery or disclosure may be
              --
necessary or appropriate (w) to effect compliance with any law, rule, regulation
                          -
or order applicable to you, (x) in response to any subpoena or other legal
                             -
process, (y) in connection with any litigation to which you are a party or (z)
          -                                                                 -
if an Event of Default has occurred and is continuing, to the extent you may
reasonably determine such delivery and disclosure to be necessary or appropriate
in the enforcement or for the protection of the rights and remedies under your
Notes and this Agreement.  Each Holder of a Note, by its acceptance of a Note,
will be deemed to have agreed to be bound by and to be entitled to the benefits
of this Section 20 as though it were a party to this Agreement.  On reasonable
request by the Company in connection with the delivery to any Holder of a Note
of information required to be delivered to such Holder under this Agreement or
requested by such Holder (other than a Holder that is a party to this Agreement
or its nominee), such Holder will enter into an agreement with the Company
embodying the provisions of this Section 20.

                                      31
<PAGE>

21.  MISCELLANEOUS.

     21.1.  Successors and Assigns.

            All covenants and other agreements contained in this Agreement by or
on behalf of any of the parties hereto bind and inure to the benefit of their
respective successors and assigns (including, without limitation, any subsequent
Holder of a Note) whether so expressed or not.

     21.2.  Payments Due on Non-Business Days.

            Anything in this Agreement or the Notes to the contrary
notwithstanding, any payment of principal of or interest on any Note that is due
on a date other than a Business Day shall be made on the next succeeding
Business Day without including the additional days elapsed in the computation of
the interest payable on such next succeeding Business Day.

     21.3.  Severability.

            Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction.

     21.4.  Construction.

            Each covenant contained herein shall be construed (absent express
provision to the contrary) as being independent of each other covenant contained
herein, so that compliance with any one covenant shall not (absent such an
express contrary provision) be deemed to excuse compliance with any other
covenant.  Where any provision herein refers to action to be taken by any
Person, or which such Person is prohibited from taking, such provision shall be
applicable whether such action is taken directly or indirectly by such Person.

     21.5.  Counterparts.

            This Agreement may be executed in any number of counterparts, each
of which shall be an original but all of which together shall constitute one
instrument. Each counterpart may consist of a number of copies hereof, each
signed by less than all, but together signed by all, of the parties hereto.

     21.6.  Governing Law.

            This Agreement shall be construed and enforced in accordance with,
and the rights of the parties shall be governed by, the law of the State of
Colorado excluding choice-of-law principles of the law of such State that would
require the application of the laws of a jurisdiction other than such State.

                             *    *    *    *    *

                                      32
<PAGE>

     If you are in agreement with the foregoing, please sign the form of
agreement on the accompanying counterpart of this Agreement and return it to the
Company, whereupon the foregoing shall become a binding agreement between you
and the Company.

                              Very truly yours,

                              COORSTEK, INC.

                              By:   /s/ Joseph G. Warren, Jr.
                                  ----------------------------------
                              Name:  Joseph G. Warren, Jr.
                              Title: Chief Financial Officer, Secretary &
                                     Treasurer

The foregoing is hereby
agreed to as of the
date thereof.

GOLDEN HERITAGE LLC

By:  /s/ William K. Coors
    -----------------------
Name:  William K. Coors
Title: Manager
<PAGE>

                                  Schedule B
                                  ----------

                                 DEFINED TERMS

     As used herein, the following terms have the respective meanings set forth
below or set forth in the Section hereof following such term:

     "Acquired Indebtedness" means with respect to any specified Person, (i)
                                                                          -
Indebtedness of any other Person existing at the time such other Person is
merged with, into or becomes a subsidiary of such specified Person, or (ii)
                                                                        --
assumed in connection with the acquisition of assets from such other Person.

     "Affiliate" means, at any time, and with respect to any Person, (a) any
other Person that at such time directly or indirectly through one or more
intermediaries Controls, or is Controlled by, or is under common Control with,
such first Person, and (b) any Person beneficially owning or holding, directly
or indirectly, 50% or more of any class of voting or equity interests of the
Company or any Subsidiary or any corporation of which the Company and its
Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly,
50% or more of any class of voting or equity interests.  As used in this
definition, "Control" means the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.
Unless the context otherwise clearly requires, any reference to an "Affiliate"
is a reference to an Affiliate of the Company.  Notwithstanding the foregoing,
neither you nor any of the Coors family trusts will be deemed to be an Affiliate
of the Company for the purposes of this Agreement and the Notes.

     "Business Day" means any day other than a Saturday, a Sunday or a day on
which commercial banks in Colorado are required or authorized to be closed.

     "Capital Lease" means, at any time, a lease with respect to which the
lessee is required concurrently to recognize the acquisition of an asset and the
incurrence of a liability in accordance with GAAP.

     "Closing" is defined in Section 3.

     "Code" means the Internal Revenue Code of 1986, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time.

     "Company" means CoorsTek, Inc., a Delaware corporation.

     "Confidential Information" is defined in Section 20.

     "Consolidated Net Income" shall mean net income (before any extraordinary
items, discontinued operations and cumulative effect of changes in accounting
principles) of the Company and its Subsidiaries for such period (taken as a
cumulative whole), as calculated in accordance with GAAP.

     "Contingent Obligation" as applied to any Person, means any direct or
indirect liability, contingent or otherwise, of that Person with respect to any
Indebtedness, lease, dividend, letter of
<PAGE>

credit or other obligation of another, if a purpose or intent of the Person
incurring the Contingent Obligation is to provide assurance to the obligee of
such obligation of another that such obligation of another will be paid or
discharged, or that any agreements relating thereto will be complied with, or
that the holders of such obligation will be protected (in whole or in part)
against loss in respect thereof. Contingent Obligations shall include, without
limitation, (i) the direct or indirect guaranty, endorsement (other than for
             -
collection or deposit in the ordinary course of business), co-making,
discounting with recourse or sale with recourse by such Person of the obligation
of another; and (ii) any liability of such Person for the obligations of another
                 --
through any agreement (contingent or otherwise) (a) to purchase, repurchase or
                                                 -
otherwise acquire such obligation or any security thereof, or to provide funds
for the payment or discharge of such obligation (whether in the form of loans,
advances, stock purchases, capital contributions or otherwise), (b) to maintain
                                                                 -
the solvency or any balance sheet item, level of income or financial condition
of another, or (c) to make take-or-pay or similar payments if required
                -
regardless of non-performance by any other party or parties to an agreement, if
in the case of any agreement described under clauses (a), (b) or (c) of this
sentence the primary purpose or intent thereof is as described in the preceding
sentence. The amount of any Contingent Obligation shall be equal to the amount
of the obligation (or portion thereof) so guaranteed or otherwise supported.

     "Default" means an event or condition the occurrence or existence of which
would, with the lapse of time or the giving of notice or both, become an Event
of Default.

     "Default Rate" means that rate of interest that is the greater of (i) 2.0%
                                                                        -
per annum above the rate of interest stated in clause (a) of the first paragraph
of the Notes or (ii) 2.5% over the rate of interest publicly announced by Bank
                 --
of America in New York, New York as its "base" or "prime" rate.

     "Designated Senior Debt" means (i) all Senior Debt under the Senior Credit
                                     -
Facility and (ii) any other Senior Debt that, at the time of determination, has
              --
an aggregate principal amount of at least $10,000,000 and is specifically
designated in the instrument evidencing such Senior Debt as "Designated Senior
Debt" by the Company.

     "Disqualified Capital Stock" means that portion of any capital stock which,
by its terms (or by the terms of any security into which it is convertible or
for which it is exchangeable at the option of the holder thereof), or upon the
happening of any event, matures (including any maturity as the result of an
optional redemption by the issuer thereof) or is mandatorily redeemable,
pursuant to a sinking fund obligation or otherwise, or is redeemable at the sole
option of the holder thereof on or prior to the Stated Maturity.

     "EBITDA" for any period means Consolidated Net Income for such period,
plus, to the extent deducted in calculating Consolidated Net Income, income tax
expense, Interest Expense, depreciation, amortization and other non-cash expense
items during such period.

     "Environmental Laws" means any and all Federal, state, local and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees,
permits, concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including but

                                       1
<PAGE>

not limited to those related to hazardous substances or wastes, air emissions
and discharges to waste or public systems.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended, and any successor statute.

     "ERISA Affiliate" means each trade or business (whether or not
incorporated) which together with the Company or a Subsidiary would be deemed to
be a "single employer" within the meaning of Section 4001 of ERISA.

     "Event of Default" is defined in Section 12.

     "Foreign Subsidiary" means a Subsidiary of the Company that is organized or
incorporated under the laws of any jurisdiction other than a jurisdiction of the
United States.

     "GAAP" means generally accepted accounting principles as in effect from
time to time.

     "Governmental Authority" means

          (a)  the government of

               (i)  the United States of America or any State or other political
                    subdivision thereof, or

               (ii) any jurisdiction in which the Company or any Subsidiary
                    conducts all or any part of its business, or which asserts
                    jurisdiction over any properties of the Company or any
                    Subsidiary, or

          (b)  any board, bureau, agency, authority, department or other entity
exercising executive, legislative, judicial, regulatory or administrative
functions of, or pertaining to, any such government.

     "Guaranty" means, with respect to any Person, any obligation (except the
endorsement in the ordinary course of business of negotiable instruments for
deposit or collection) of such Person guaranteeing or in effect guaranteeing any
Indebtedness, dividend or other obligation of any other Person in any manner,
whether directly or indirectly, including (without limitation) obligations
incurred through an agreement, contingent or otherwise, by such Person:

          (a)  to purchase such Indebtedness or obligation or any property
               constituting security therefor;

          (b)  to advance or supply funds (i) for the purchase or payment of
                                           -
               such Indebtedness or obligation, or (ii) to maintain any working
                                                    --
               capital or other balance sheet condition or any income statement
               condition of any other Person or otherwise to advance or make
               available funds for the purchase or payment of such Indebtedness
               or obligation;

                                       3
<PAGE>

          (c)  to lease properties or to purchase properties or services
               primarily for the purpose of assuring the owner of such
               Indebtedness or obligation of the ability of any other Person to
               make payment of the Indebtedness or obligation; or

          (d)  otherwise to assure the owner of such Indebtedness or obligation
               against loss in respect thereof.

     In any computation of the Indebtedness or other liabilities of the obligor
under any Guaranty, the Indebtedness or other obligations that are the subject
of such Guaranty shall be assumed to be direct obligations of such obligor.

     "Holder" means, with respect to any Note, the Person in whose name such
Note is registered in the register maintained by the Company pursuant to Section
14.1.

     "Incur" is defined in Section 11.1.

     "Indebtedness" with respect to any Person means, at any time, without
duplication,

          (a)  all liabilities, obligations and indebtedness of such Person
               which in accordance with GAAP should be classified upon such
               Person's balance sheet as a liability in respect of borrowed
               money;

          (b)  its liabilities for borrowed money and its redemption obligations
               in respect of Disqualified Capital Stock;

          (c)  its liabilities for the deferred purchase price of property
               acquired by such Person (excluding accounts payable arising in
               the ordinary course of business but including all liabilities
               created or arising under any conditional sale or other title
               retention agreement with respect to any such property);

          (d)  all liabilities appearing on its balance sheet in accordance with
               GAAP in respect of Capital Leases;

          (e)  all liabilities for borrowed money secured by any Lien with
               respect to any property owned by such Person (whether or not it
               has assumed or otherwise become liable for such liabilities);

          (f)  all its liabilities in respect of letters of credit or
               instruments serving a similar function issued or accepted for its
               account by banks and other financial institutions (whether or not
               representing obligations for borrowed money);

          (g)  Swaps of such Person; and

          (h)  any Guaranty of such Person with respect to liabilities of a type
               described in any of clauses (a) through (g) hereof.

                                       4
<PAGE>

Indebtedness of any Person shall include all obligations of such Person of the
character described in clauses (a) through (h) to the extent such Person remains
legally liable in respect thereof notwithstanding that any such obligation is
deemed to be extinguished under GAAP.

     "Interest Expense" means, with respect to any period, the sum (without
duplication) of the following: (i) all interest expense in respect of
                                -
Indebtedness of the Company and its Subsidiaries (including imputed interest on
Capital Leases) deducted in determining Consolidated Net Income for such period
and (ii) all debt discount and expense amortized in such period.
     --

     "Lien" means, with respect to any Person, any mortgage, lien, pledge,
charge, security interest or other encumbrance, or any interest or title of any
vendor, lessor, lender or other secured party to or of such Person under any
conditional sale or other title retention agreement or Capital Lease, upon or
with respect to any property or asset of such Person (including in the case of
stock, stockholder agreements, voting trust agreements and all similar
arrangements).

     "Material" means material in relation to the business, operations, affairs,
financial condition, assets, properties, or prospects of the Company and its
Subsidiaries taken as a whole.

     "Material Adverse Effect" means a material adverse effect on (a) the
                                                                   -
business, operations, affairs, financial condition, assets or properties of the
Company and its Subsidiaries taken as a whole, or (b) the ability of the Company
                                                   -
to perform its obligations under this Agreement and the Notes, or (c) the
                                                                   -
validity or enforceability of this Agreement or the Notes.

     "Material Agreement" means any material contract of the Company or its
Subsidiaries disclosed by the Company in its most recent annual and quarterly
reports filed with the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended, pursuant to Item 601(b)(10) of Regulation S-K
promulgated under the Securities Act.

     "Multiemployer Plan" means any Plan that is a "multiemployer plan" (as such
term is defined in section 4001(a)(3) of ERISA).

     "Note Payment" is defined in Section 9.2.

     "Noteholder Representative" means Golden Heritage LLC or, if Golden
Heritage LLC no longer holds any Notes, then any Significant Holder that is
designated as the Noteholder Representative by the Required Holders.

     "Notes" is defined in Section 1.

     "Officer's Certificate" means a certificate of a Senior Financial Officer
or of any other officer of the Company whose responsibilities extend to the
subject matter of such certificate.

     "PBGC" means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA or any successor thereto.

     "Payment Blockage Period" is defined in Section 9.3.

                                       5
<PAGE>

     "Person" means any individual, partnership, corporation, limited liability
company, association, trust, unincorporated organization, or a government or
agency or political subdivision thereof.

     "Plan" means an "employee benefit plan" (as defined in section 3(3) of
ERISA) that is or, within the preceding five years, has been established or
maintained, or to which contributions are or, within the preceding five years,
have been made or required to be made, by the Company or any ERISA Affiliate or
with respect to which the Company or any ERISA Affiliate may have any liability.

     "Proceeding" is defined in Section 9.2.

     "property" or "properties" means, unless otherwise specifically limited,
real or personal property of any kind, tangible or intangible, choate or
inchoate.

     "Required Holders" means, at any time, the holders of at least 51% in
principal amount of the Notes at the time outstanding (exclusive of Notes then
owned by the Company or any of its Affiliates).

     "Responsible Officer" means any Senior Financial Officer and any other
officer of the Company with responsibility for the administration of the
relevant portion of this agreement.

     "Restricted Junior Payment" means (i) any dividend or other distribution,
                                        -
direct or indirect, on account of any shares of any class of stock of the
Company and any Subsidiary now or hereafter outstanding (including, without
limitation, any  payment or distribution made in any merger or consolidation),
except a dividend payable solely in shares of that class of stock or a junior
class of stock to the holders of that class and except for dividends (and the
like) from the Subsidiaries solely to the Company or to Subsidiaries, (ii) any
                                                                       --
prepayment, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares or of any outstanding
warrants or rights to acquire any shares of any class of stock of the Company or
any Subsidiary now or hereafter outstanding, and (iii) any payment of principal,
                                                  ---
premium or interest on, or any direct or indirect prepayment, retirement,
defeasance or sinking fund or similar payment, purchase or other acquisition for
value, direct or indirect, of any Subordinated Debt of the Company.

     "Securities Act" means the Securities Act of 1933, as amended from time to
time.

     "Senior Credit Facility" means the credit facility extended pursuant to
that certain First Amended and Restated Revolving Credit and Term Loan
Agreement, dated as of January 11, 2001, as amended by that certain First
Amendment to First Amended and Restated Revolving Credit and Term Loan
Agreement, dated as of the date hereof, among the Company, Bank of America, N.A.
(as Administrative Agent), the Required Lenders party thereto, the Increasing
Lenders party thereto and the Guarantors thereof, and any refinancings, renewals
or extensions thereof.  For the purpose hereof, the term "Senior Credit
Facility" includes such First Amended and Restated Revolving Credit and Term
Loan Agreement, as amended by such First Amendment to First Amended and Restated
Revolving Credit and Term Loan Agreement, and all related loan documents,
collateral documents and guaranties thereunder and all amendments,
modifications, restatements, restructures or refinancings thereof (including any
increase in the principal amount thereof).

                                       6
<PAGE>

     "Senior Debt" means the principal of, premium, if any, and interest
(including any interest accruing subsequent to the filing of a petition of
bankruptcy at the rate provided for in the documentation with respect thereto,
whether or not such interest is an allowed claim under applicable law) on
Indebtedness of the Company, whether outstanding on the date of the Closing or
thereafter Incurred in respect of: (i) all monetary obligations of every nature
                                    -
of the Company under, or with respect to, the Senior Credit Facility, including,
without limitation, obligations to pay principal and interest (including any
interest accruing subsequent to the filing of a petition of bankruptcy at the
rate provided for in the documentation with respect thereto, whether or not such
interest is an allowed claim under applicable law), reimbursement obligations
under letters of credit, fees, expenses and indemnities; (ii) all Financial
                                                          --
Hedges permitted by the Senior Credit Facility; and (iii) all additional
                                                     ---
Indebtedness of the Company that is not Subordinated Debt, is Incurred in
compliance with Section 11.1 (which amount may, but need not, be Incurred in
whole or in part under the Senior Credit Facility) and is expressly designated
as Senior Debt for the purposes of this Agreement in the instrument defining the
terms of such Indebtedness. Notwithstanding the foregoing, "Senior Debt" shall
not include: (1) any obligations permitted by Section 11.1(i); (2) Indebtedness
to, or guaranteed on behalf of, any shareholder, director, officer or employee
of the Company or any Subsidiary of the Company (including, without limitation,
amounts owed for compensation) other than a shareholder who is a lender (or an
Affiliate of a lender) under the Senior Credit Facility and who has been such
lender (or an Affiliate of such lender) prior to its becoming such shareholder;
(3) that portion of any Indebtedness incurred in violation of Section 11.1 of
this Agreement (but, as to any such obligation, no such violation shall be
deemed to exist for purposes of this clause (3) if the holder(s) of such
obligation or their representative shall have received an Officers' Certificate
of the Company to the effect that the incurrence of such Indebtedness does not
(or, in the case of revolving credit indebtedness, that the incurrence of the
entire committed amount thereof at the date on which the initial borrowing
thereunder is made would not) violate such provisions of this Agreement; (4)
obligations to trade creditors and other amounts incurred in connection with
obtaining goods, materials or services and other obligations permitted pursuant
to Section 11.1(e); (5) obligations represented by Disqualified Capital Stock;
(6) any liability for federal, state, local or other taxes owed or owing by the
Company; (7) Indebtedness which, when incurred and without respect to any
election under Section 1111(b) of Title 11, United States Code, is without
recourse to the Company; and (8) any Indebtedness which is, by its express
terms, subordinated in right of payment to the Notes.

     "Senior Debt Agent" means Bank of America, N.A., as Administrative Agent
under the Senior Credit Facility, and any successor agent under any credit
facility entered into to refinance or replace the Senior Credit Facility.

     "Senior Financial Officer" means the chief financial officer, principal
accounting officer, treasurer, assistant treasurer, or controller of the
Company.

     "Senior Nonmonetary Default" is defined in Section 9.3.

     "Senior Payment Default" is defined in Section 9.3.

     "Senior Unsecured Debt" means Indebtedness for borrowed monies Incurred by
the Company or a Subsidiary, which Indebtedness is wholly unsecured.

                                       7
<PAGE>

     "Significant Holder" means you and each other Holder of at least
$15,000,000 in aggregate principal amount of Notes that is a permitted
transferee thereof in accordance with Section 14.

     "Stated Maturity", when used with respect to any Note or any installment of
interest thereon, means the date specified in this Agreement or such Note as the
fixed date on which the principal of such Note or such installment of interest
is due and payable.

     "Subordinated Debt" means Indebtedness of the Company, in each case
including all principal, interest, premium and fees accruing on such
Indebtedness or in connection therewith or any renewal, extension, amendment,
supplement or other modification to any of the documentation in respect thereof,
which is (i) subordinate and junior in right of payment to the Notes on terms
          -
and provisions which are no more favorable to the holders of such Subordinated
Debt than the terms and provisions of Section 9 are to you, or (ii) convertible
                                                                --
into or exchangeable for any equity securities of the Company.

     "Subsidiary" means, as to any Person, any corporation, association or other
business entity in which such Person or one or more of its Subsidiaries or such
Person and one or more of its Subsidiaries owns sufficient equity or voting
interests to enable it or them (as a group) ordinarily, in the absence of
contingencies, to elect a majority of the directors (or Persons performing
similar functions) of such entity, and any partnership or joint venture if more
than a 50% interest in the profits or capital thereof is owned by such Person or
one or more of its Subsidiaries or such Person and one or more of its
Subsidiaries (unless such partnership can and does ordinarily take major
business actions without the prior approval of such Person or one or more of its
Subsidiaries).  Unless the context otherwise clearly requires, any reference to
a "Subsidiary" is a reference to a Subsidiary of the Company.

     "Swaps" means, with respect to any Person, payment obligations with respect
to interest rate swaps, currency swaps and similar obligations obligating such
Person to make payments, whether periodically or upon the happening of a
contingency.  For the purposes of this Agreement, the amount of the obligation
of any Person under any Swap shall be the amount of accrued or liquidated
obligations of such Person as of the date of determination.

     "Total Indebtedness" means, as of any time of determination, the then
outstanding aggregate principal amount of all Indebtedness of the Company and
its Subsidiaries on a consolidated basis, excluding Contingent Obligations to
the extent already included in Total Indebtedness.

                                       8
<PAGE>

                                   Exhibit 1
                                   ---------

                                 FORM OF NOTE

                                COORSTEK, INC.

                7.5% SENIOR SUBORDINATED NOTE DUE JULY 25, 2011

No. [_____]                                                        July 25, 2001
$[_______]

          FOR VALUE RECEIVED, the undersigned, CoorsTek, Inc. (herein called the
"Company"), a corporation organized and existing under the laws of the State of
Delaware, hereby promises to pay to the order of [______________________], or
registered assigns, the principal sum of [___________] DOLLARS on July 25, 2011,
with interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid balance thereof at the rate of 7.5% per annum from the date
 -
hereof, payable quarterly, in arrears, on March 15, June 15, September 15 and
December 15 in each year, commencing with September 15, 2001, until the
principal hereof shall have become due and payable, and (b) to the extent
                                                         -
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest payable quarterly as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate per annum
from time to time equal to the greater of (i) 9.5% or (ii) 2.5% over the rate of
                                           -           --
interest publicly announced by Bank of America from time to time in New York,
New York as its "base" or "prime" rate.

          Payments of principal of and interest on this Note are to be made in
lawful money of the United States of America at the address and to the account
set forth in Schedule A to the Note Purchase Agreement referred to below or at
such other place as the Company shall have designated by written notice to the
holder of this Note as provided in such Note Purchase Agreement.

          This Note is one of a series of Notes (herein called the "Notes")
issued pursuant to a Note Purchase Agreement, dated as of July 25, 2001 (as from
time to time amended, the "Note Purchase Agreement"), between the Company and
the purchaser named therein and is entitled to the benefits thereof and subject
to the terms, conditions, rights and remedies therein.  Each holder of this Note
will be deemed, by its acceptance hereof, (i) to have agreed to the
                                           -
confidentiality provisions set forth in Section 20 of the Note Purchase
Agreement, (ii) to have agreed to the subordination provisions set forth in
            --
Section 9 of the Note Purchase Agreement, and (iii) to have made the
                                               ---
representation set forth in Section 6 of the Note Purchase Agreement.

          This Note is a registered Note and, as provided in the Note Purchase
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee.  Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.
<PAGE>

          This Note is subject to optional prepayment, in whole or from time to
time in part, at the times and on the terms specified in the Note Purchase
Agreement, but not otherwise.

          If an Event of Default, as defined in the Note Purchase Agreement,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price and with the effect
provided in the Note Purchase Agreement.

          In addition to, and not in limitation of, the provisions of the Note
Purchase Agreement, the Company agrees, subject only to any limitation imposed
by applicable law and Section 16.1 of the Note Purchase Agreement, to pay all
costs and expenses, including reasonable attorneys' fees and legal expenses,
incurred by any holder of this Note in endeavoring to collect any amounts due
and payable hereunder which are not paid and delivered or otherwise satisfied
when due, whether at a scheduled payment date, by acceleration or otherwise.

          The Company, for itself and all endorsers hereof, hereby waives all
requirements as to diligence, notice, demand, presentment for payment, protest
and notice of dishonor.

          As provided in the Note Purchase Agreement, this Note shall be
construed and enforced in accordance with the laws of the State of Colorado
excluding choice-of-law principles of such State that would require the
application of the laws of a jurisdiction other than such State.

                              COORSTEK, INC.

                              By: ______________________________________
                              Name:  Joseph G. Warren, Jr.
                              Title: Chief Financial Officer, Secretary &
                                     Treasurer

                                       2<PAGE>

                                                                    EXHIBIT 10.2

                              FIRST AMENDMENT TO
                          FIRST AMENDED AND RESTATED
                   REVOLVING CREDIT AND TERM LOAN AGREEMENT
                   ----------------------------------------

     THIS FIRST AMENDMENT TO FIRST AMENDED AND RESTATED REVOLVING CREDIT AND
TERM LOAN AGREEMENT (this "Amendment") is entered into as of July 25, 2001,
among COORSTEK, INC., a Delaware corporation ("Borrower"), certain Lenders under
the Credit Agreement described below, BANK OF AMERICA, N.A., in its capacity as
Administrative Agent for the Lenders under the Credit Agreement ("Administrative
Agent"), and Guarantors under the Credit Agreement (hereinafter defined).

     Reference is made to the First Amended and Restated Revolving Credit and
Term Loan Agreement, dated as of January 11, 2001 (as amended to date, the
"Credit Agreement"), among Borrower, Administrative Agent, and the Lenders party
thereto. Unless otherwise defined in this Amendment, capitalized terms used
herein shall have the meaning set forth in the Credit Agreement; all Section and
Schedule references herein are to Sections and Schedules in the Credit
Agreement; and all Paragraph references herein are to Paragraphs in this
Amendment.

                                   RECITALS
                                   --------

     A.      Borrower proposes to issue up to $100,000,000 of Subordinated Debt
(the " Subordinated Debt"), a portion of the proceeds of which will be used as
follows: (i) to pay fees, costs, and expenses associated with the issuance of
the Subordinated Debt and this Amendment and (ii) to permanently prepay the Term
Loan B Principal Debt.

     B.      Borrower has requested that a provision be added to the Credit
Agreement to permit the Revolver Commitment, at Borrower's request and upon
receipt of commitments from Lenders and other Eligible Assignees, to be
increased by up to an additional $50,000,000.

     C.      Borrower has requested certain amendments under the Credit
Agreement, and the Lenders party hereto are willing to grant and agree to such
amendments and waivers, but only upon the condition, among other things, that
Borrower, Guarantors, and Required Lenders shall have executed and delivered
this Amendment and shall have agreed to the terms and conditions of this
Amendment.

     NOW, THEREFORE, in consideration of these premises and other valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto agree, as follows:

Paragraph 1  Amendments.
             -----------

     1.1     Definitions.
             -----------

     (a)     The definition of "Applicable Margin" is amended to add an
additional pricing tier for a Leverage Ratio of greater than or equal to 3.50 to
1.0; accordingly, the pricing grid in clause (a) of the definition of
"Applicable Margin" is deleted in its entirety and the following is substituted
therefor:
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
                                                          Applicable Margin
                                         -------------------------------------------------

                                                                          Eurodollar Rate
        Leverage Ratio                  Base Rate Borrowings                Borrowings
==========================================================================================
      <S>                              <C>                               <C>

       Less than 2.50:1.0                         0%                         1.500%
------------------------------------------------------------------------------------------

   Greater than or equal to
           2.50:1.0,
    but less than 3.00:1.0                    0.250%                         1.750%
------------------------------------------------------------------------------------------

   Greater than or equal to
           3.00:1.0,
    but less than 3.25:1.0                    0.500%                         2.000%
------------------------------------------------------------------------------------------

   Greater than or equal to
           3.25:1.0,
    but less than 3.50:1.0                    0.750%                         2.250%
------------------------------------------------------------------------------------------

   Greater than or equal to
           3.50:1.0                           1.000%                         2.500%
------------------------------------------------------------------------------------------
</TABLE>

     (b)  In order to delete the reference to permitted sale-leaseback
arrangements, the definition of "Capital Expenditures" is amended by (i)
inserting the word "and" immediately after clause (a) thereof, (ii) deleting the
comma (,) immediately after clause (b) thereof and substituting a period (.)
therefor, and (iii) deleting clauses (c) and (d) in their entirety.

     (c)  The definition of "Lien" is amended by inserting the following proviso
at the end of such definition prior to the period (.):

          "; provided that, any financing statement filed by the owner of
          equipment leased to a Company and filed solely for the purpose of
          putting third parties on notice of such owner's interest (as a lessor
          under an operating lease) in such equipment will not be considered a
          Lien, so long as such operating lease remains a true operating lease
          under GAAP and under applicable Law."

     (d)  The definition of "Permitted Acquisition" is amended as follows by:

          (i)  deleting clause (a)(i) thereof in its entirety and substituting
the following therefor:

               "         (i)   the Purchase Price of all Permitted Acquisitions
               consummated in any calendar year may not exceed $80,000,000 in
               the aggregate nor may the portion of the Purchase Price for all
               Permitted Acquisitions consummated in any calendar year
               attributable to goodwill exceed the lesser of 50% of the Purchase
               Price or $40,000,000 in the aggregate; provided that, at any time
               when the Leverage Ratio is greater than 3.50 to 1.0 (but not
               greater than the applicable Leverage Ratio required by Section
               9.30(a)), no Permitted Acquisition may be consummated if the
               aggregate Purchase Price for all Acquisitions consummated in such
               calendar year (including the proposed Acquisition) exceeds
               $10,000,000 (any

                                       2
<PAGE>

                     Acquisition consummated in accordance with this proviso
                     shall be referred to herein as a "Special Acquisition");";

          (ii)   deleting clause (a)(iii) thereof in its entirety and
substituting the following therefor:

                     "    (iii)   not less than 10 Business Days prior to the
                     closing of any Acquisition, Borrower shall have delivered
                     to Administrative Agent a Permitted Acquisition Compliance
                     Certificate (A) certifying compliance with the terms and
                     conditions of the Loan Documents, after giving effect to
                     the Acquisition and (B) including (1) pro forma income and
                     balance sheet projections for the Companies (after giving
                     effect to the Acquisition), and (2) five year cash flow
                     projections for the Acquisition demonstrating compliance
                     with the Companies' applicable financial covenants and debt
                     amortization schedules; provided that, for any Acquisition
                     (other than a Special Acquisition) with a Purchase Price of
                     less than $10,000,000, the items in clause (B) shall not be
                     required;"; and

          (iii)  deleting the word "and" after clause (a)(vi) thereof, and (iv)
     adding the following as clauses (a)(viii) and (a)(ix):

                     "    (viii)  Except with respect to Special Acquisitions
                     made in accordance with clause (a)(i) hereof, the Leverage
                     Ratio (calculated on a pro forma basis after giving effect
                     to any Acquisition) must be less than or equal to the
                     lesser of (x) the applicable Leverage Ratio required by
                     Section 9.30(a) or (y) 3.50 to 1.00, as of the closing of
                     such Acquisition and for the five years immediately
                     following such Acquisition; and

                          (ix)    With respect to Special Acquisitions made in
                     accordance with clause (a)(i) hereof, the Leverage Ratio
                     (calculated on a pro forma basis after giving effect to any
                     Acquisition) must be less than or equal to the applicable
                     Leverage Ratio required by Section 9.30(a), as of the
                     closing of such Acquisition and for the five years
                     immediately following such Acquisition."

     (e)  The definition of "Revolver Commitment" is amended to address the
potential increases of the commitment contemplated by Paragraph 1.2 hereof by
deleting such provision in its entirety and substituting the following is
therefor:

          "Revolver Commitment means an amount (subject to increase, reduction,
          or cancellation in accordance with this Agreement) equal to
          $125,000,000."

     (f)  The following definitions of "First Amendment," "First Amendment
Date," "Special Acquisition," and "Subordinated Debt" shall be inserted in
alphabetical order in Section 1.1 to read, as follows:

          "First Amendment means that certain First Amendment to First Amended
          and Restated Revolving Credit and Term Loan Agreement dated as of July
          25, 2001, among Borrower, Guarantors, Administrative Agent, and
          Required Lenders."

                                       3
<PAGE>

          "First Amendment Date means the "Effective Date," as defined in the
          First Amendment."

          "Special Acquisition is defined in clause (a)(i) of the definition of
          "Permitted Acquisition.""

          "Subordinated Debt means (a) Debt of any Company which is subordinated
          in right of payment to the Obligation and which is permitted under
          Section 9.12(j), so long as (i) the maturity date of all Subordinated
          Debt is no earlier than six months after the latest of the then-
          existing Termination Dates, (ii) such Subordinated Debt is unsecured,
          unguaranteed, and does not (in the absence of default and acceleration
          to the extent permitted by the subordination terms thereof) require
          any principal payments prior to the termination of the Total
          Commitment, payment in full of the Principal Debt and of all interest,
          fees, and other amounts of the Obligation, and the expiration of all
          LCs (other than permitted refinancings or conversions made in
          accordance with Section 9.6), and (iii) all terms and conditions of
          such Subordinated Debt and the documents and agreements evidencing and
          establishing such Subordinated Debt (including, without limitation,
          the subordination provisions) are acceptable to Administrative Agent
          (in its sole discretion), (b) refinancings of Subordinated Debt
          permitted under Section 9.6, and (c) conversions of Subordinated Debt
          into forms of equity permitted under Section 9.6."

     1.2  A new Section 2.8 is added to permit optional increases in the
Revolver Commitment, as follows:

          "2.8  Increases of Commitments.
                ------------------------

                (a)   Upon notice to Administrative Agent (which shall promptly
          notify Revolver Lenders), Borrower may from time to time, request an
          increase in the Revolver Commitment of up to $50,000,000, resulting in
          an increased Revolver Commitment of up to $175,000,000; provided that
          (i) any request for an increase in the Revolver Commitment shall be in
          an amount not less than $10,000,000 and (ii) no more than two requests
          for an increased Revolver Commitment may be made.  At the time of
          sending such notice, Borrower (in consultation with Administrative
          Agent) shall specify the time period within which each Revolver Lender
          is requested to respond (which shall in no event be less than ten
          Business Days from the date of delivery of such notice to Revolver
          Lenders).  Each Revolver Lender shall notify Administrative Agent
          within such time period whether or not it agrees to increase its
          Committed Sum under the Revolver Facility, and, if so, whether by an
          amount equal to, greater than, or less than its Commitment Percentage
          of such requested increase.  Any Revolver Lender not responding within
          such time period shall be deemed to have declined to increase its
          Committed Sum under the Revolver Facility.  Administrative Agent shall
          notify Borrower and each Revolver Lender of Revolver Lenders'
          responses to each request made hereunder.  To achieve the full amount
          of a requested increase, the Borrower may also invite additional
          Eligible Assignees to become Revolver Lenders.  Any increase in the
          Revolver Commitment must be effected by an amendment that is executed
          in accordance with Section 13.11 by Borrower, Administrative Agent,
          and the one or more Revolver Lenders who have agreed to increase their
          Committed Sums or by new Lenders who have agreed to new Committed Sums
          in accordance with Section 13.11.

                                       4
<PAGE>

               (b)  If any Committed Sums under the Revolver Facility are
          increased in accordance with this Section, Administrative Agent and
          Borrower shall determine the effective date of such increase (the
          "Increase Effective Date").  Administrative Agent and Borrower shall
          promptly notify Revolver Lenders of the final allocation of such
          increase and the Increase Effective Date.  As a condition precedent to
          such increase, Borrower shall deliver to the Administrative Agent (i)
          a certificate of each Loan Party dated as of the Increase Effective
          Date (in sufficient copies for each Revolver Lender) signed by a
          Responsible Officer of such Loan Party (A) certifying and attaching
          the resolutions adopted by such Loan Party approving or consenting to
          such increase, (B) in the case of the Borrower, including a Compliance
          Certificate demonstrating pro forma compliance with Section 9.30 after
          giving effect to such increase, and (C) certifying that, before and
          after giving effect to such increase, the representations and
          warranties contained in Section 8 are true and correct on and as of
          the Increase Effective Date and no Default or Potential Default
          exists; (ii) a certificate of Borrower dated as of the Increase
          Effective Date (in sufficient copies for each Revolver Lender) signed
          by a Responsible Officer of Borrower certifying that the incurrence of
          Debt as of the Increase Effective Date is permitted by the terms of
          the documents evidencing the Subordinated Debt and attaching
          calculations demonstrating the same; and (iii) such other opinions and
          documents evidencing authority and compliance with the documents
          evidencing the Subordinated Debt as Administrative Agent may
          reasonably request.  Borrower shall deliver new or amended Revolver
          Notes reflecting the increased Committed Sums under the Revolver
          Facility to any Lenders holding or requesting Revolver Notes.  Each
          new Lender acquiring a Committed Sum under the Revolver Facility shall
          be a "Revolver Lender" hereunder, entitled to the rights and benefits,
          and subject to the duties, of a Revolver Lender under the Loan
          Documents.  In such case, each Revolver Lender's Commitment Percentage
          shall be recalculated to reflect the new proportionate share of the
          revised Revolver Commitment and the Revolver Lenders acquiring
          additional or increased Committed Sums (each a "purchasing Lender")
          shall, immediately upon receiving notice from Administrative Agent,
          pay to each Revolver Lender an amount equal to its pro rata share of
          the Borrowings under the Revolver Facility (and any funded
          participations by Revolver Lenders under the Swing Line Subfacility
          and the LC Subfacility) outstanding as of such date.  All such
          payments with respect to the Borrowings under the Revolver Facility
          shall reduce the outstanding Revolver Principal Debt owed to each
          Revolver Lender receiving such payments and shall represent Borrowings
          under the Revolver Facility to Borrower and be Revolver Principal Debt
          owed to the purchasing Lender; all such payments with respect to
          funded participations under the Swing Line Subfacility or LC
          Subfacility (as the case may be) shall reduce the applicable
          participation of each Revolver Lender receiving such payment and shall
          represent the purchase by the purchasing Lender of a participation
          under the Swing Line Subfacility or the LC Subfacility (as the case
          may be).  Additionally, Borrower shall pay any additional amounts
          required pursuant to Section 4.5 in connection with such repayments to
          any Revolver Lender.  The purchasing Lender shall be entitled to share
          ratably in interest accruing on the balances purchased, at the rates
          provided herein for such balances, from and after the date of
          purchase.  All new Borrowings under the Revolver Facility occurring
          after an increase of the Revolver Commitment shall be funded in
          accordance with the Revolver Lender's revised Commitment Percentages.

                                       5
<PAGE>

     1.3     Interest Payments.  The last sentence of Section 3.2(a) is deleted
             -----------------
in its entirety and the following is substituted therefor:

               "Accrued interest on each Base Rate Borrowing shall be due and
               payable on each March 1, June 1, September 1, and December 1, and
               on the Termination Date for the applicable Facility."

     1.4     Payment of Obligation.  In order to permit certain refinancings and
             ---------------------
conversions of the Subordinated Debt, Section 9.6 is amended by adding a
sentence at the end of such Section which reads as follows:

               "Notwithstanding the foregoing, so long as no Default or
               Potential Default then exists or arises as a result therefrom,
               any Subordinated Debt may be refinanced with the proceeds of, or
               otherwise converted into (x) Debt securities that are
               subordinated to the Obligation to substantially the same or
               greater extent than the Subordinated Debt being refinanced, which
               do not increase the principal amount of the Subordinated Debt
               from the amount of Subordinated Debt outstanding immediately
               prior to such refinancing, and which otherwise satisfy the
               criteria for Subordinated Debt; (y) common equity of Borrower;
               and (z) other equity interests of Borrower or its Subsidiaries
               (other than Redeemable Preferred Stock) that are subordinated in
               right of payment to the Obligation to substantially the same or
               greater extent than the Subordinated Debt being converted, are
               unsecured and unguaranteed, and are otherwise in form and terms
               satisfactory to Administrative Agent (in its reasonable
               discretion). In addition, no Company shall make any payment on
               any Subordinated Debt, when such payment violates the
               subordination provisions thereof or results in a Default or
               Potential Default hereunder."

     1.5     Debt and Guaranties.  Section 9.12 is amended to permit
             -------------------
Subordinated Debt by (a) deleting the word "and" after clause (h) thereof, (b)
inserting the word "; and" after clause (i) thereof, and (c) inserting the
following phrase as clause (j) thereof:

               "(j)   Subordinated Debt, so long as (i) the aggregate original
               principal amount of all Subordinated Debt does not exceed
               $100,000,000 in the aggregate at any date of determination and
               (ii) the mandatory prepayments required by Section 3.3(b)(i) are
               made concurrently with the issuance of such Subordinated Debt."

     1.6     Liens.  Section 9.13(b) is amended by (a) deleting the word "; and"
             -----
after clause (ix) thereof and substituting therefor a period ("."), and (b)
deleting clause (x) thereof in its entirety.

     1.7     Loans, Advances, and Investments.  In order to delete the reference
             --------------------------------
to permitted sale-leaseback arrangements, Section 9.20 is amended by (i)
deleting the word "and" after clause (i) thereof, (ii) adding "; and" after
clause (h) thereof, and (iii) deleting clause (j) thereof in its entirety.

     1.8     Sale of Assets.  In order to delete the reference to permitted
             --------------
sale-leaseback arrangements, Section 9.23 is deleted in its entirety and the
following is substituted therefor:

               "No Company shall sell, assign, transfer, or otherwise dispose of
               any of its assets, other than (a) sales of inventory in the
               ordinary course of business,

                                       6
<PAGE>

             (b) the sale, discount, or transfer of delinquent accounts
             receivable in the ordinary course of business for purposes of
             collection, (c) occasional sales of immaterial assets for
             consideration not less than the fair market value thereof, (d)
             dispositions of obsolete assets, (e) sale, leases, or other
             disposition among Loan Parties, and (f) if no Default or Potential
             Default then exists or arises as a result thereof, sales of assets,
             other than those in clauses (a) through (e), for fair value for
             cash or Cash Equivalents; so long as (i) the aggregate value of all
             assets sold pursuant to clause (f) during any fiscal year shall not
             exceed $10,000,000 and (ii) concurrently with any such disposition,
             Borrower shall make the mandatory prepayments (if any) required by
             Section 3.3(b)(iii)."

     1.9     Sale-Leaseback Financings.  Section 9.24 is amended by deleting the
             -------------------------
proviso thereto in its entirety.

     1.10    Affiliate Subordination Agreements.  Section 9.27 shall be amended
             ----------------------------------
by adding a sentence at the end of such Section which reads as follows:

             "Notwithstanding the foregoing, Borrower shall not be required to
             deliver to Administrative Agent such agreement with respect to any
             Subordinated Debt issued on the First Amendment Date (or permitted
             refinancings or conversions thereof), so long as such Subordinated
             Debt otherwise satisfies the requirements for permitted
             Subordinated Debt set forth in Section 9.12(j)."

     1.11    Amendments to Documents.  Section 9.28 is amended to prohibit
             -----------------------
certain modifications to the Subordinated Debt documents by (a) deleting the
word "either" immediately prior to clause (a) thereof, (b) deleting the word
"or" immediately prior to clause (b) thereof, and (c) adding the following as
clause (c) thereof prior to the period (.):

             "(c) amend or modify any material (determined in the reasonable
             discretion of Administrative Agent) provision of, or waive any
             material (determined in the reasonable discretion of Administrative
             Agent) condition under, any document or instrument evidencing or
             relating to the Subordinated Debt, without obtaining prior written
             consent of Administrative Agent with respect thereto"

     1.12    Leverage Ratio.  Section 9.30(a) shall be deleted in its entirety
             --------------
and replaced with the following:

             "(i) if no Qualifying Subordinated Debt is outstanding on any date
             of determination (each a "compliance date") , Borrower shall never
             permit the Leverage Ratio of the Companies at any compliance date
             to be greater than the ratio shown in the table below which
             corresponds to the period in which the applicable compliance date
             occurs (as used herein, "Qualifying Subordinated Debt" means
             Subordinated Debt described in clauses (a) and (b) of the
             definition of Subordinated Debt with an outstanding principal
             amount of $100,000,000):

<TABLE>
<CAPTION>
             ----------------------------------------------------------------------------------------
                           Period                                           Maximum Leverage Ratio
             ----------------------------------------------------------------------------------------
             <S>                                                            <C>
                   Closing Date, to and including December 30,                    3.50 to 1
             ----------------------------------------------------------------------------------------
</TABLE>

                                       7
<PAGE>

<TABLE>
<CAPTION>
             ----------------------------------------------------------------------------------------
                     Period                                     Maximum Leverage Ratio
             ----------------------------------------------------------------------------------------
             <S>                                                      <C>
                 December 30, 2000
             ----------------------------------------------------------------------------------------

                December 31, 2000, to and including                    3.25 to 1
               December 30, 2002
             ----------------------------------------------------------------------------------------

                 December 31,2002, to and including                    3.00 to 1
               December 30, 2003
             ----------------------------------------------------------------------------------------

                 December 31, 2003, and thereafter                     2.75 to 1
             ----------------------------------------------------------------------------------------
</TABLE>

             (ii) if Qualifying Subordinated Debt is outstanding on any
             compliance date, Borrower shall never permit the Leverage Ratio of
             the Companies at any compliance date to be greater than the ratio
             shown in the table below which corresponds to the period in which
             the applicable compliance date occurs:

<TABLE>
<CAPTION>
                     Period                               Maximum Leverage Ratio
             ----------------------------------------------------------------------------------------
             <S>                                         <C>
                Closing Date, to and including                        n/a
                    December 30, 2000
             ----------------------------------------------------------------------------------------

                 December 31, 2000, to and                       4.00 to 1
                 including March 30, 2003
             ----------------------------------------------------------------------------------------

                  March 31, 2003, to and                         3.50 to 1
                including March 30, 2004
             ----------------------------------------------------------------------------------------

               March 31, 2004, and thereafter                    3.25 to 1
             ----------------------------------------------------------------------------------------
</TABLE>

     1.13    Defaults.  New Sections 10.14, 10.15, and 10.16 shall be added as
             --------
 follows:

             "Section 10.14 Payment of Certain Other Agreements. The payment
                            -----------------------------------
             directly or indirectly (including, without limitation, any payment
             in respect of any sinking fund, defeasance, redemption, or payment
             of any dividend or distribution) by any Loan Party or any
             Subsidiary thereof of any amount of any Subordinated Debt or any
             equity interests of any Loan Party in a manner or at a time during
             which such payment is not permitted under the terms of the Loan
             Documents or under any instrument or document evidencing or
             creating such Subordinated Debt or equity interests, including,
             without limitation, any subordination provisions set forth therein.

             Section 10.15 Default or Acceleration under Subordinated Debt. (a)
                           -----------------------------------------------
             The occurrence of any "default" or "event of default" or other
             breach which remains uncured on any date of determination under or
             with respect to the any agreement creating or evidencing any
             Subordinated Debt or any equity interests of any Loan Party; (b)
             the trustee with respect to, or any holder of, any Subordinated
             Debt or any equity interests of any Loan Party shall effectively
             declare all or any portion of that Debt or obligations thereunder
             due and payable prior to the stated maturity thereof; or (c) any
             Subordinated Debt or obligations under any equity interests of any
             Loan Party

                                       8
<PAGE>

          becomes due before its stated maturity or redemption date (as
          applicable) by acceleration of the maturity thereof.

          Section 10.16  Redemption of Certain Other Debt or Obligation.  If an
                         ----------------------------------------------
          event shall occur, including, without limitation, a "Change in
          Control" as defined in any documents or agreements evidencing or
          creating any Subordinated Debt or any equity interests of any Loan
          Party, and (a) the trustee or the holders of any such Debt or
          obligation shall initiate notice to request or require (or any Loan
          Party shall automatically be so required) to redeem or repurchase such
          Debt or obligation, or (b) any Loan Party shall initiate notice to
          holders of any Subordinated Debt or any equity interests of any Loan
          Party, in connection with a redemption of any Debt or any obligation
          arising under such agreements or instruments."

   1.14   Amendments, Consents, Conflicts, and Waivers.  Section 13.11 is
          --------------------------------------------
amended to address the potential for increased Committed Sums and Commitment
Percentages pursuant to Section 2.8 by (a) deleting the last sentence in clause
(b) thereof in its entirety and (b) adding a new clause (e) thereto as follows:

          "(e)  Any amendment to or consent or waiver under this Agreement or
          any Loan Document which purports (subject to Section 2.8 or otherwise)
          to increase any Lender's "Committed Sum" or "Commitment Percentage" or
          add a new Revolver Lender as a new Revolver Lender pursuant to Section
          2.8 must be by an instrument in writing executed by such existing
          Lender or such new Revolver Lender."

   1.15   Third Party Beneficiaries.  A new Section 13.15 shall be added as
          -------------------------
follows:

          "13.15  Third Party Beneficiaries.  Each Loan Party and each other
                  -------------------------
          party to this Agreement intends that the Loan Documents shall not
          benefit or create any Right or cause of action in or on behalf of any
          Person, including without limitation the holders of the Subordinated
          Debt, other than the  Loan Parties and each other party to this
          Agreement and their permitted successors and assigns."

   1.16   Confidentiality.  A new Section 13.16 shall be added as follows:
          ---------------

          "13.16  Confidentiality.  Each of Administrative Agent and Lenders
                  ---------------
          agrees to maintain the confidentiality of the Information (as defined
          below), except that Information may be disclosed (a) to its and its
          Affiliates' directors, officers, employees, and agents, including
          accountants, legal counsel, and other advisors (it being understood
          that the Persons to whom such disclosure is made will be informed of
          the confidential nature of such Information and instructed to keep
          such Information confidential); (b) to the extent required by any
          Governmental Authority or requested by any examiner; (c) to the extent
          required by applicable Laws or regulations or by any subpoena or
          similar legal process; (d) to any other party to this Agreement; (e)
          in connection with the exercise of any Rights hereunder or any suit,
          action, or proceeding relating to this Agreement or the enforcement of
          Rights hereunder; (f) subject to an agreement containing provisions
          substantially the same as those of this Section, to (i) any Eligible
          Assignee of or Participant in, or any prospective Eligible Assignee of
          or Participant in, any of its Rights or obligations under this
          Agreement or (ii) any direct or indirect contractual counterparty or
          prospective counterparty (or such contractual counterparty's or
          prospective counterparty's professional advisor) to any credit
          derivative transaction relating to

                                       9
<PAGE>

              obligations of Borrower; (g) with the consent of Borrower; (h) to
              the extent such Information (i) becomes publicly available other
              than as a result of a breach of this Section or (ii) becomes
              available to Administrative Agent or any Lender on a
              nonconfidential basis from a source other than Borrower; or (i) to
              the National Association of Insurance Commissioners or any other
              similar organization or any nationally recognized rating agency
              that requires access to information about a Lender's or its
              Affiliates' investment portfolio in connection with ratings issued
              with respect to such Lender or its Affiliates. For the purposes of
              this Section, "Information" means all information received from
              any Loan Party relating to its respective or any other Loan
              Party's business, other than any such information that is
              available to Administrative Agent or any Lender on a
              nonconfidential basis prior to disclosure by Borrower; provided
              that, in the case of information received from Borrower after the
              date hereof, such information is clearly identified in writing at
              the time of delivery as confidential. Any Person required to
              maintain the confidentiality of Information as provided in this
              Section shall be considered to have complied with its obligation
              to do so if such Person has exercised the same degree of care to
              maintain the confidentiality of such Information as such Person
              would accord to its own confidential information."

     1.17     Exhibits E-2 and E-3.  (a) The Form of Permitted Acquisition
Compliance Certificate set forth on Exhibit E-2 to the Credit Agreement, is
deleted in its entirety and the document labeled Exhibit E-2, Revised Form of
Permitted Acquisition Compliance Certificate attached hereto shall be
substituted therefor.

     (b) The Form of Permitted Acquisition Loan Closing Certificate set forth on
Exhibit E-3 to the Credit Agreement, is deleted in its entirety and the document
labeled Exhibit E-3, Revised Form of Permitted Acquisition Loan Closing
Certificate attached hereto shall be substituted therefor.

Paragraph 2  Amendment Fees.  On the Effective Date (hereinafter defined),
             --------------
Borrower shall pay (a) to each Revolver Lender consenting to this Amendment on
or prior to July 20, 2001 (the "Consent Deadline"), the "Consenting Revolver
Lenders"), an amendment fee, in an amount equal to the greater of (i) $5,000 and
(ii) 0.05% of the Committed Sum under the Revolver Facility of such Consenting
Revolver Lender as of the Effective Date and (b) to each investment advisor of
any Term Loan B Lender that is a fund or commingled investment vehicle, an
amendment fee in an amount equal to $2,500, if all Term Loan B Lenders managed
or advised by such investment advisor have consented to this Amendment on or
prior to the Consent Deadline, the "Consenting Investment Advisors").  All of
the fees required to be paid pursuant to this Paragraph 2 shall be paid to
Administrative Agent for distribution to the Consenting Revolver Lenders and the
Consenting Investment Advisors in accordance with the terms of this Paragraph 2.
The failure of Borrower to comply with the provisions of this Paragraph 2 shall
constitute a payment Default entitling Lenders to exercise their respective
Rights under the Loan Documents.

Paragraph 3  Conditions.  This Amendment shall be effective on the date (the
             ----------
"Effective Date") upon which (i) the representations and warranties in this
Amendment are true and correct; (ii) Administrative Agent receives counterparts
of this Amendment executed by Borrower, each Guarantor, and Required Lenders;
(iii) Administrative Agent receives copies of the documents or instruments
creating or evidencing the Subordinated Debt, certified by Borrower to be true
and correct, and Administrative Agent has approved the terms and conditions
thereof; (iv) Administrative Agent receives evidence that Subordinated Debt has
been issued by Borrower; (v) Administrative Agent has received for distribution
to Lenders, a prepayment of the Obligation from the Net Cash Proceeds of the
Subordinated Debt in accordance with the requirements of Section 3.3(b)(i) in an
amount not less than the amount necessary to repay the Obligations arising under
the Term Loan B Facility; and (vi) Administrative Agent has received payment
from Borrower of the amendment

                                       10
<PAGE>

fees required to be paid to Consenting Revolver Lenders, Consenting Investment
Advisors, and Administrative Agent on the Effective Date pursuant to Paragraph 2
hereof.

Paragraph 4  Acknowledgment and Ratification.  As a material inducement to
             -------------------------------
Administrative Agent and the Lenders to execute and deliver this Amendment,
Borrower and each Guarantor (a) consent to the agreements in this Amendment and
(b) agree and acknowledge that the execution, delivery, and performance of this
Amendment shall in no way release, diminish, impair, reduce, or otherwise affect
the respective obligations of Borrower or Guarantors under their respective
Collateral Documents, which Collateral Documents shall remain in full force and
effect, and all Liens, guaranties, and Rights thereunder are hereby ratified and
confirmed.

Paragraph 5  Representations.  As a material inducement to Lenders to execute
             ---------------
and deliver this Amendment, Borrower represents and warrants to Lenders (with
the knowledge and intent that Lenders are relying upon the same in entering into
this Amendment) that as of the Effective Date of this Amendment and as of the
date of execution of this Amendment, (a) all representations and warranties in
the Loan Documents are true and correct in all material respects as though made
on the date hereof, except to the extent that (i) any of them speak to a
different specific date or (ii) the facts on which any of them were based have
been changed by transactions contemplated or permitted by the Credit Agreement,
(b) except as waived by this Amendment, no Potential Default or Default exists,
and (c) this Amendment has been duly authorized and approved by all necessary
corporate action and requires the consent of no other Person, and upon execution
and delivery, this Amendment shall be binding and enforceable against Borrower,
Parent, and each other Guarantor in accordance with its terms.

Paragraph 6  Expenses.  Borrower shall pay all costs, fees, and expenses paid or
             --------
incurred by Administrative Agent incident to this Amendment, including, without
limitation, the reasonable fees and expenses of Administrative Agent's counsel
in connection with the negotiation, preparation, delivery, and execution of this
Amendment and any related documents.

Paragraph 7  Miscellaneous.  This Amendment is a "Loan Document" referred to in
             -------------
the Credit Agreement, and the provisions relating to Loan Documents in Section
13 of the Credit Agreement are incorporated in this Amendment by reference.
Unless stated otherwise (a) the singular number includes the plural and vice
versa and words of any gender include each other gender, in each case, as
appropriate, (b) headings and captions may not be construed in interpreting
provisions, (c) this Amendment must be construed, and its performance enforced,
under New York law, (d) if any part of this Amendment is for any reason found to
be unenforceable, all other portions of it nevertheless remain enforceable, and
(e) this Amendment may be executed in any number of counterparts with the same
effect as if all signatories had signed the same document, and all of those
counterparts must be construed together to constitute the same document.

Paragraph 8  Entire Agreement.  This amendment represents the final agreement
             ----------------
between the parties about the subject matter of this amendment and may not be
contradicted by evidence of prior, contemporaneous, or subsequent oral
agreements of the parties.  There are no unwritten oral agreements between the
parties.

Paragraph 9  Parties.  This Amendment binds and inures to Borrower, Guarantors,
             -------
Administrative Agent, Lenders, and their respective successors and assigns.

     The parties hereto have executed this Amendment in multiple counterparts to
be effective as of the Effective Date.

                                       11
<PAGE>

                     Remainder of the Intentionally Blank.
                          Signature Pages to Follow.

                                       12
<PAGE>

     Signature Page to that certain First Amended and Restated Revolving
Credit and Term Loan Agreement dated as of the date set forth above, among
CoorsTek, Inc., as Borrower, Bank of America, N.A., as Administrative Agent, and
certain Lenders and Guarantors.

                              COORSTEK, INC., as Borrower

                              By:  /s/Joseph G. Warren, Jr.
                                   -------------------------------------------
                                   Name:   Joseph G. Warren, Jr.
                                           -----------------------------------
                                   Title:  Chief Financial Officer, Vice
                                           -----------------------------------
                                           President, Secretary and
                                           -----------------------------------
                                           Treasurer
                                           -----------------------------------

                                       13
<PAGE>

       Signature Page to that certain First Amendment to First Amended and
Restated Revolving Credit and Term Loan Agreement dated as of the date set forth
above, among CoorsTek, Inc., as Borrower, Bank of America, N.A., as
Administrative Agent, and certain Lenders and Guarantors.

Alumina Ceramics, Inc.,                      as a Guarantor
as a Guarantor

                                             By:  /s/ Joseph G. Warren, Jr.
By:  /s/ Joseph G. Warren, Jr.                    ------------------------------
     -------------------------------              Name:  Joseph G. Warren, Jr.
     Name:  Joseph G. Warren, Jr.                        -----------------------
            ------------------------              Title: Secretary and Treasurer
     Title: Secretary and Treasurer                      -----------------------
            ------------------------

                                             CoorsTek Worldwide Sales, Inc.,
Coors Ceramicon Designs, Ltd.,               as a Guarantor
as a Guarantor
                                             By:  /s/ Joseph G. Warren, Jr.
By:  /s/ Joseph G. Warren, Jr.                    ------------------------------
     -------------------------------              Name:  Joseph G. Warren, Jr.
     Name:  Joseph G. Warren, Jr.                        -----------------------
            ------------------------              Title: Vice President,
     Title: Secretary and Treasurer                      -----------------------
            ------------------------                     Secretary and
                                                         -----------------------
                                                         Treasurer
                                                         -----------------------

Coors Technical Ceramics Company,            CoorsTek Texas Holding Company,
as a Guarantor                               as a Guarantor

By:  /s/ Joseph G. Warren, Jr.               By:  /s/ Joseph G. Warren, Jr.
     -------------------------------              ------------------------------
     Name:  Joseph G. Warren, Jr.                 Name:  Joseph G. Warren, Jr.
            ------------------------                     -----------------------
     Title: Secretary and Treasurer               Title: Treasurer
            ------------------------                     -----------------------

Coors Wear Products, Inc.                    CoorsTek Austin, L.P.,
as a Guarantor                               as a Guarantor

By:  /s/ Joseph G. Warren, Jr.               By:  /s/ Joseph G. Warren, Jr.
     -------------------------------              ------------------------------
     Name:  Joseph G. Warren, Jr.                 Name:  Joseph G. Warren, Jr.
            ------------------------                     -----------------------
     Title: Secretary and Treasurer               Title: Secretary and Treasurer
            ------------------------                     -----------------------

Edwards Enterprises,
as a Guarantor

By:  /s/ Joseph G. Warren, Jr.
     -------------------------------
     Name:  Joseph G. Warren, Jr.
            ------------------------
     Title: Secretary and Treasurer
            ------------------------

Wilbanks International, Inc.,

<PAGE>

     Signature Page to that certain First Amendment to First Amended and
Restated Revolving Credit and Term Loan Agreement dated as of the date set forth
above, among CoorsTek, Inc., as Borrower, Bank of America, N.A., as
Administrative Agent, and certain Lenders and Guarantors.

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

                              By:  /s/ Suzanne M. Paul
                                   ---------------------------------------------
                                   Name:  Suzanne M. Paul
                                          --------------------------------------
                                   Title: Vice President
                                          --------------------------------------

<PAGE>

     Signature Page to that certain First Amendment to First Amended and
Restated Revolving Credit and Term Loan Agreement dated as of the date set forth
above, among CoorsTek, Inc., as Borrower, Bank of America, N.A., as
Administrative Agent, and certain Lenders and Guarantors.

BANK OF AMERICA, N.A., as a Lender        THE DAI-ICHI KANGYO BANK, LTD.,
                                          as a Lender
By:  /s/ Steven M. Mackenzie
     -----------------------------        By:  /s/ Christopher Fahey
     Name:   Steven M. Mackenzie               ---------------------------------
             ---------------------             Name:   Christopher Fahey
     Title:  Vice President                            -------------------------
             ---------------------             Title:  Vice President
                                                       -------------------------

ABN AMRO BANK, N. V., as a Lender
                                          FIRSTAR BANK, N. A., as a Lender

By:  /s/ John E. Robertson                By:  /s/ David. F. Higbie
     -----------------------------             ---------------------------------
     Name:   John E. Robertson                 Name:   David F. Higbie
             ---------------------                     -------------------------
     Title:  Group Vice President              Title:  Vice President
             ---------------------                     -------------------------

By:  /s/ Peter J. Hallan
     -----------------------------
     Name:   Peter J. Hallan
             ---------------------
     Title:  Vice President
             ---------------------        FLEET NATIONAL BANK, as a Lender

                                          By:  /s/ Lee A. Merkle-Raymond
THE BANK OF NEW YORK, as a Lender              ---------------------------------
                                               Name:   Lee A. Merkle-Raymond
By:  /s/ Robert Besser                                 -------------------------
     -----------------------------             Title:  Director
     Name:   Robert Besser                             -------------------------
             ---------------------
     Title:  Vice President
             ---------------------        FRANKLIN FLOATING RATE TRUST,
                                          as a Lender

BAYERESCHE HYPO-UND VEREINSBANK           By:  /s/ Chauncey Lufkin
AG, NEW YORK BRANCH, as a Lender               ---------------------------------
                                               Name:   Chauncey Lufkin
By:  /s/ Timothy Harrod                                -------------------------
     -----------------------------             Title:  Vice President
     Name:   Timothy Harrod                            -------------------------
             ---------------------
     Title:  Managing Director            THE FUJI BANK, LIMITED, as a Lender
             ---------------------
                                          By:  /s/ S. Brennan
By:  /s/ Chris Yu                              ---------------------------------
     -----------------------------             Name:   S. Brennan
     Name:   Chris Yu                                  -------------------------
             ---------------------             Title:  Senior Vice President
     Title:  Associate Director                        -------------------------
             ---------------------                     and Manager
                                                       -------------------------

CREDIT LYONNAIS NEW YORK BRANCH,
as a Lender                               GENERAL ELECTRIC CAPITAL CORPORATION,
                                          as a Lender

By:  /s/ Atilla Koc                       By:  /s/ Gregory Hong
     -----------------------------             ---------------------------------
     Name:   Attila Koc                        Name:   Gregory Hong
             ---------------------                     -------------------------
     Title:  Senior Vice President             Title:  Duly Authorized Signatory
             ---------------------                     -------------------------

<PAGE>

     Signature Page to that certain First Amendment to First Amended and
Restated Revolving Credit and Term Loan Agreement dated as of the date set forth
above, among CoorsTek, Inc., as Borrower, Bank of America, N.A., as
Administrative Agent, and certain Lenders and Guarantors.

HARRIS TRUST AND SAVINGS BANK,             KZH LANGDALE LLC, as a Lender
as a Lender
                                           By:  /s/ Scott Hignett
By:  /s/ Scott M. Ferris                        --------------------------------
     ------------------                         Name:   Scott Hignett
     Name:   Scott M. Ferris                            ------------------------
             ----------------------             Title:  Authorized Agent
     Title:  Managing director                          ------------------------
             ----------------------

                                           US BANK, N. A., as a Lender
IKB DEUTSCHE INDUSTRIEBANK A.G.,
LUXEMBOURG BRANCH, as a Lender             By:  /s/ Thomas McCarthy
                                                --------------------------------
By:  /s/ Ana Bohorquet                          Name:   Thomas McCarthy
     ------------------------------                     ------------------------
     Name:   Ana Bohorquet                      Title:  Vice President
             ----------------------                     ------------------------
     Title:  Assistant Director
             ----------------------        WELLS FARGO BANK WEST, N.A., as a
                                           Lender

                                           By:  /s/ John R. Hall
By:  /s/ Anja Keuchel                           --------------------------------
     ------------------------------             Name:   John R. Hall
     Name:   Anja Keuchel                               ------------------------
             ----------------------             Title:  Vice President
     Title:  Manager                                    ------------------------
             ----------------------

KEY BANK NATIONAL ASSOCIATION,
as a Lender

By:  /s/ Mark K. Sunderland
     ------------------------------
     Name:   Mark K. Sunderland
             ----------------------
     Title:  Senior Vice President
             ----------------------

KZH SOLEIL LLC, as a Lender

By:  /s/ Scott Hignett
     ------------------------------
     Name:   Scott Hignett
             ----------------------
     Title:  Authorized Agent
             ----------------------

KZH SOLEIL-2 LLC, as a Lender

By:  /s/ Scott Hignett
     ------------------------------
     Name:   Scott Hignett
             ----------------------
     Title:  Authorized Agent
             ----------------------

<PAGE>

     Signature Page to that certain First Amendment to First Amended and
Restated Revolving Credit and Term Loan Agreement dated as of the date set forth
above, among CoorsTek, Inc., as Borrower, Bank of America, N.A., as
Administrative Agent, and certain Lenders and Guarantors.

ATHENA CDO, LIMITED (Acct 1277)
By:  Pacific Investment Management Company LLC,
     as its Investment Advisor

     By:  /s/ Mohan V. Phansalkar
          ---------------------------------
          Name:   Mohan V. Phansalkar
                  -------------------------
          Title:  Executive Vice President
                  -------------------------

CAPTIVA III FINANCE LTD. (Acct 275),
as advised by Pacific Investment Management Company LLC

By:  /s/ David Egglshaw
     --------------------------------------
     Name:   David Egglshaw
             ------------------------------
     Title:  Director
             ------------------------------

DELANO COMPANY (Acct 274)
By:  Pacific Investment Management Company LLC,
     as its Investment Advisor

     By: /s/ Mohan V. Phansalkar
         ----------------------------------
         Name:    Mohan V. Phansalkar
                  -------------------------
         Title:   Executive Vice President
                  -------------------------

JISSEKIKUN FUNDING, LTD., (Acct 1288)
By:  Pacific Investment Management Company LLC,
     as its Investment Advisor

     By: /s/ Mohan V. Phansalkar
         ----------------------------------
         Name:    Mohan V. Phansalkar
                  -------------------------
         Title:   Executive Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]