Document:

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                                                                   EXHIBIT 10.35

                              AMENDED AND RESTATED
                           LOAN AND SECURITY AGREEMENT

                                      among

                        AMERICAN RAILCAR INDUSTRIES, INC.

                                  as Borrower,

                  the Lenders from time to time party thereto,

                                       and

                    NORTH FORK BUSINESS CAPITAL CORPORATION,

                                    as Agent

                          Dated as of January 24, 2006

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                                TABLE OF CONTENTS

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ARTICLE I. DEFINITIONS...............................................................................        1

  SECTION 1.1   General Definitions..................................................................        1
  SECTION 1.2   Accounting Terms and Determinations..................................................       17
  SECTION 1.3   Other Terms; Headings................................................................       17

ARTICLE II. THE CREDIT FACILITIES....................................................................       18

  SECTION 2.1   The Revolving Credit Loans...........................................................       18
  SECTION 2.2   CapEx Loans..........................................................................       19
  SECTION 2.3   Procedure for Borrowing; Notices of Borrowing; Notices of Continuation; Notices
                of Conversion; Settlement............................................................       19
  SECTION 2.4   Application of Proceeds..............................................................       24
  SECTION 2.5   Maximum Amount of the Facility; Mandatory Prepayments;
                Optional Prepayments.................................................................       25
  SECTION 2.6   Maintenance of Loan Account; Statements of Account...................................       25
  SECTION 2.7   Collection of Receivables............................................................       26
  SECTION 2.8   Term.................................................................................       26
  SECTION 2.9   Payment Procedures...................................................................       26
  SECTION 2.10  Defaulting Lenders...................................................................       27
  SECTION 2.11  Sharing of Payments, Etc.............................................................       28
  SECTION 2.12  Publicity............................................................................       29

ARTICLE III. SECURITY................................................................................       29

  SECTION 3.1   General..............................................................................       29
  SECTION 3.2   Recourse to Security.................................................................       29
  SECTION 3.3   Special Provisions Relating to Inventory.............................................       29
  SECTION 3.4   Special Provisions Relating to Receivables...........................................       31
  SECTION 3.5   Special Provisions Relating to Equipment.............................................       31
  SECTION 3.6   Continuation of Liens, Etc...........................................................       32
  SECTION 3.7   Power of Attorney....................................................................       32

ARTICLE IV. INTEREST, FEES AND EXPENSES..............................................................       33

  SECTION 4.1   Interest.............................................................................       33
  SECTION 4.2   Interest After Event of Default......................................................       33
  SECTION 4.3   Agent's and Closing Fees.............................................................       33
  SECTION 4.4   Unused Line Fee......................................................................       33
  SECTION 4.5   Calculations.........................................................................       33
  SECTION 4.6   Indemnification in Certain Events....................................................       33
  SECTION 4.7   Taxes................................................................................       34
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ARTICLE V. CONDITIONS OF LENDING.....................................................................       36

  SECTION 5.1   Conditions to Initial Loan...........................................................       36
  SECTION 5.2   Conditions Precedent to Each Loan....................................................       39

ARTICLE VI. REPRESENTATIONS AND WARRANTIES...........................................................       39

  SECTION 6.1   Representations and Warranties of the Borrower; Reliance
                by the Lenders.......................................................................       39

ARTICLE VII. COVENANTS OF THE BORROWER...............................................................       45

  SECTION 7.1   Affirmative Covenants................................................................       45
  SECTION 7.2   Negative Covenants...................................................................       51

ARTICLE VIII. FINANCIAL COVENANTS....................................................................       52

  SECTION 8.1   Fixed Charge Coverage Ratio..........................................................       52
  SECTION 8.2   Leverage Ratio.......................................................................       52
  SECTION 8.3   Business Plan........................................................................       52

ARTICLE IX. EVENTS OF DEFAULT........................................................................       52

  SECTION 9.1   Events of Default....................................................................       52
  SECTION 9.2   Acceleration, Termination and Demand Rights..........................................       54
  SECTION 9.3   Other Remedies.......................................................................       57
  SECTION 9.4   License for Use of Software and Other Intellectual Property..........................       58
  SECTION 9.5   No Marshalling; Deficiencies; Remedies Cumulative....................................       58
  SECTION 9.6   Waivers..............................................................................       58
  SECTION 9.7   Further Rights of the Agent..........................................................       59
  SECTION 9.8   Interest After Event of Default......................................................       59

ARTICLE X. THE AGENT.................................................................................       59

  SECTION 10.1  Appointment of Agent.................................................................       59
  SECTION 10.2  Nature of Duties of Agent............................................................       59
  SECTION 10.3  Lack of Reliance on Agent............................................................       60
  SECTION 10.4  Certain Rights of the Agent..........................................................       60
  SECTION 10.5  Reliance by Agent....................................................................       60
  SECTION 10.6  Indemnification of Agent.............................................................       60
  SECTION 10.7  The Agent in Its Individual Capacity.................................................       61
  SECTION 10.8  Holders of Notes.....................................................................       61
  SECTION 10.9  Successor Agent......................................................................       61
  SECTION 10.10 Collateral Matters...................................................................       61
  SECTION 10.11 Actions with Respect to Defaults.....................................................       62
  SECTION 10.12 Delivery of Information..............................................................       62
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ARTICLE XI. GENERAL PROVISIONS.......................................................................       63

  SECTION 11.1  Notices..............................................................................       63
  SECTION 11.2  Delays; Partial Exercise of Remedies.................................................       63
  SECTION 11.3  Right of Setoff......................................................................       63
  SECTION 11.4  Indemnification; Reimbursement of Expenses of Collection.............................       64
  SECTION 11.5  Amendments, Waivers and Consents.....................................................       65
  SECTION 11.6  Nonliability of Agent and Lenders....................................................       65
  SECTION 11.7  Assignments and Participations.......................................................       65
  SECTION 11.8  Counterparts; Telecopied Signatures..................................................       67
  SECTION 11.9  Severability.........................................................................       68
  SECTION 11.10 Maximum Rate.........................................................................       68
  SECTION 11.11 Entire Agreement; Successors and Assigns; Interpretation.............................       68
  SECTION 11.12 LIMITATION OF LIABILITY..............................................................       69
  SECTION 11.13 GOVERNING LAW........................................................................       69
  SECTION 11.14 SUBMISSION TO JURISDICTION...........................................................       69
  SECTION 11.15 SERVICE OF PROCESS...................................................................       70
  SECTION 11.16 JURY TRIAL...........................................................................       70
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Schedules

Schedule 1            Commitments of Lenders
Schedule 2            Pledged Deposit Accounts
Schedule 6.1(a)       Foreign Jurisdictions
Schedule 6.1(b)       Locations of Collateral
Schedule 6.1(g)       Subsidiaries
Schedule 6.1(p)       Taxes

Exhibits

Exhibit A         -   Revolving Credit Note
Exhibit B         -   CapEx Note
Exhibit C         -   Assignment and Acceptance
Exhibit D         -   Compliance Certificate
Exhibit E         -   Notice of Borrowing
Exhibit F         -   Notice of Continuation
Exhibit G         -   Notice of Conversion
Exhibit H         -   Borrowing Base Certificate
Exhibit I         -   Perfection Certificate
Exhibit J         -   Collateral Access Agreement

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                                                                   Exhibit 10.35

                AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

            AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT, dated as of
January 24, 2006, among AMERICAN RAILCAR INDUSTRIES, INC., a Delaware
corporation, as successor-by-merger to American Railcar Industries, Inc., a
Missouri corporation (the "Borrower"), each of the financial institutions
identified as a Lender on Schedule 1 (together with each of their respective
direct and indirect successors and assigns, each, a "Lender," and collectively,
the "Lenders"), and NORTH FORK BUSINESS CAPITAL CORPORATION, a New York
corporation ("NFBC"), as agent for the Lenders (the "Agent").

                                  WITNESSETH :

            WHEREAS, the Borrower, the Agent and certain of the Lenders are
parties to a Loan and Security Agreement, dated as of March 10, 2005 (as
amended, the "Original Loan Agreement");

            WHEREAS, the Borrower wishes to amend and restate the Original Loan
Agreement to increase the amount of the revolving credit facility available to
it and to create a subfacility for the borrowing of loans for capital
expenditures; and

            WHEREAS, upon the terms and subject to the conditions set forth
herein, the Lenders are willing to make revolving loans and term loans to the
Borrower in an aggregate amount not to exceed $75,000,000, of which no more than
$15,000,000 may be term loans;

            NOW, THEREFORE, the Borrower, the Lenders and the Agent hereby agree
as follows:

                                    ARTICLE I.
                                   DEFINITIONS

            SECTION 1.1 General Definitions. As used herein, the following terms
shall have the meanings herein specified (to be equally applicable to both the
singular and plural forms of the terms defined):

            "Advance" means a Base Rate Advance or a LIBOR Rate Advance.

            "Affiliate" means, as to any Person, any other Person who directly
or indirectly controls, is under common control with, is controlled by or is a
director, officer, manager or general partner of such Person. As used in this
definition, "control" (including its correlative meanings, "controlled by" and
"under common control with") means possession, directly or indirectly, of the
power to direct or cause the direction of management or policies (whether
through ownership of voting securities or partnership or other ownership
interests, by contract or otherwise), provided that any public company that does
not conduct business in any material respect in or with the railcar industry
shall not be an Affiliate hereunder except for purposes of

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Section 6.1(cc). For the avoidance of doubt, a Subsidiary of the Borrower shall
be deemed to be an Affiliate of the Borrower.

            "Agent" has the meaning specified in the introductory paragraph.

            "Agent Loan" has the meaning specified in Section 2.3(h).

            "Agent's Payment Account" means the account of the Agent at North
Fork Bank in Melville, New York, account number 3124059415, or such other
account of the Agent or any of its Affiliates in the United States as the Agent
may from time to time designate in writing to the Borrower and the Lenders.

            "Agreement" means this Loan and Security Agreement, as amended,
supplemented or otherwise modified from time to time.

            "Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and its assignee, and accepted by the Agent, and
substantially in the form of Exhibit C.

            "Auditors" means Grant Thornton LLP or another nationally recognized
firm of independent public accountants selected by the Borrower and reasonably
satisfactory to the Agent.

            "Availability Event" means that the difference between (i) the
lesser of (A) the Borrowing Base and (B) the Maximum Amount of the Facility less
the aggregate outstanding principal amount of the CapEx Loans and (ii) the
aggregate outstanding amount of the Revolving Loans and the Agent Loans, is less
than $5,000,000.

            "Bankruptcy Code" means Title 11 of the United States Code entitled
"Bankruptcy," as that title may be amended from time to time, or any successor
statute.

            "Base Rate" means the higher of (i) the highest prime, base or
equivalent rate of interest publicly announced from time to time by Citibank,
N.A., Bank of America, N.A. and North Fork Bank, or any successor thereto (which
may not be the lowest rate of interest charged by any such bank) and (ii) the
published annualized rate for ninety-day dealer commercial paper that appears in
the "Money Rates" section of The Wall Street Journal.

            "Base Rate Advance" means an Advance that bears interest as provided
in Section 4.1(a).

            "Blocked Account" has the meaning specified in Section 2.7.

            "Blocked Account Agreement" has the meaning specified in Section
2.7.

            "Blocked Account Bank" means Citibank, N.A., Bank of America, N.A.
or U.S. Bank National Association or any successor or any other bank acceptable
to the Agent to act as such.

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            "Borrower" has the meaning specified in the introductory paragraph.

            "Borrower's Account" means the account maintained by the Borrower at
North Fork Bank in Melville, New York or such other account as the Borrower may
from time to time designate in writing to the Agent.

            "Borrowing" has the meaning specified in Section 2.3(a).

            "Borrowing Base" has the meaning specified in Section 2.1(a).

            "Borrowing Base Certificate" has the meaning specified in Section
7.1(k)(iv).

            "Borrowing Date" means the date on which a Borrowing is obtained.

            "Business Day" means any day other than a Saturday, a Sunday or any
other day on which commercial banks in New York, New York are required or
permitted by law to close. When used in connection with any LIBOR Rate Advance,
a Business Day shall also exclude any day on which commercial banks are not open
for dealings in Dollar deposits in the London interbank market.

            "Business Plan" means a business plan of the Borrower and its
Subsidiaries, consisting of consolidated and consolidating projected balance
sheets, related cash flow statements and related profit and loss statements, and
availability forecasts, together with appropriate supporting details and a
statement of the underlying assumptions, which covers a one-year period and
which is prepared on a monthly basis in a manner consistent with GAAP and with
the Financial Statements.

            "CapEx Loans" has the meaning specified in Section 2.2(a).

            "CapEx Note" has the meaning specified in Section 2.2(b).

            "Capital Expenditures" means expenditures for any fixed assets or
improvements, replacements, substitutions or additions thereto or therefor which
have a useful life of more than one year, and shall include all commitments,
payments in respect of Capitalized Lease Obligations and leasehold improvements.

            "Capitalized Lease Obligations" means any rental obligation which,
under GAAP, is or will be required to be capitalized on the books of the lessee,
taken at the amount thereof accounted for as Indebtedness (net of Interest
Expense) in accordance with GAAP.

            "Cash Equivalents" means (i) securities issued, guaranteed or
insured by the United States or any of its agencies with maturities of not more
than one year from the date acquired; (ii) securities issued, guaranteed or
insured by any state of the United States or any public instrumentality thereof
with maturities of not more than one year from the date acquired and, at the
time of acquisition, having one of the three highest ratings obtainable from
either Standard & Poor's Ratings Services or Moody's Investors Service, Inc.;
(iii) time deposits, term deposits and certificates of deposit with maturities
of not more than one year from the date acquired, issued by (A) the Agent or any
Lender or any of their respective Affiliates, (B) any

                                      -3-
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U.S. federal or state chartered commercial bank of recognized standing which has
capital and unimpaired surplus in excess of $500,000,000 or (C) any bank or its
holding company that has a short-term commercial paper rating of at least A-1 or
the equivalent by Standard & Poor's Ratings Services or at least P-1 or the
equivalent by Moody's Investors Service, Inc.; (iv) repurchase agreements and
reverse repurchase agreements with terms of not more than thirty days from the
date acquired, for securities of the type described in clause (i) or (ii) above
and entered into only with commercial banks having the qualifications described
in clause (iii) above or such other financial institutions with a short-term
commercial paper rating of at least A-1 or the equivalent by Standard & Poor's
Ratings Services or at least P-1 or the equivalent by Moody's Investors Service,
Inc.; (v) commercial paper issued by any Person incorporated under the laws of
the United States or any state thereof and rated at least A-1 or the equivalent
thereof by Standard & Poor's Ratings Services or at least P-1 or the equivalent
thereof by Moody's Investors Service, Inc., in each case with maturities of not
more than one year from the date acquired; and (vi) investments in money market
funds registered under the Investment Company Act of 1940, which have net assets
of at least $500,000,000 and at least eighty-five percent (85%) of whose assets
consist of securities and other obligations of the type described in clauses (i)
through (v) above.

            "Closing Date" means the date of execution and delivery of this
Agreement.

            "Code" has the meaning specified in Section 1.3.

            "Collateral" means all Receivables of the Borrower (other than
Excluded Receivables), all Inventory of the Borrower, the Pledged Deposit
Accounts of the Borrower and all Equipment purchased with the proceeds of CapEx
Loans.

            "Collateral Access Agreements" means a landlord waiver, mortgagee
waiver, bailee letter or similar acknowledgment of any lessor, warehouseman or
processor in possession of any Collateral or on whose property any Collateral is
located, substantially in the form of Exhibit J.

            "Collections" means all cash, funds, checks, notes, instruments, any
other form of remittance tendered by account debtors in respect of payment of
Receivables of the Borrower and any other payments received by the Borrower with
respect to any Collateral.

            "Commitment" means, with respect to any Lender, its commitment to
make Loans up to the amount set forth opposite its name on Schedule 1.

            "Compliance Certificate" has the meaning specified in Section
7.1(k)(iii).

            "Contingent Obligation" means any direct, indirect, contingent or
non-contingent guaranty or obligation for the Indebtedness of another Person,
except endorsements in the ordinary course of business.

            "Continuation" has the meaning specified in Section 2.3(b).

            "Convert," "Conversion" and "Converted" each refers to conversion of
Advances of one Type into Advances of another Type pursuant to Section 2.3(c).

                                      -4-
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            "Default" means any of the events specified in Section 9.1, whether
or not any of the requirements for the giving of notice, the lapse of time, or
both, or any other condition, has been satisfied.

            "Defaulting Lender" has the meaning specified in Section 2.10(a).

            "Dollars" and the sign "$" means freely transferable lawful currency
of the United States.

            "EBITDA" means, for any period, with respect to the Borrower (i) net
income (as that term is determined in accordance with GAAP) for such period,
plus (ii) the amount of depreciation and amortization of fixed and intangible
assets deducted in determining such net income for such period, plus (iii) all
Interest Expense and all fees for the use of money or the availability of money,
including commitment, facility and like fees and charges upon Indebtedness
(including Indebtedness to the Lenders) paid or payable during such period, plus
(iv) all tax liabilities paid or accrued during such period, less (v) the amount
of all extraordinary gains (or plus the amount of all extraordinary losses)
realized during such period including, without limitation, gains (or losses)
realized upon the sale or other disposition of property or assets that are sold
or otherwise disposed of outside the ordinary course of business, plus (vi) the
amount of any non-cash compensation accrued during such period including,
without limitation, in connection with (A) stock options or other equity awards
and incentives granted under the 2005 Equity Incentive Plan described in the
Registration Statement and (B) the award of common stock to be granted to James
Unger in connection with the IPO as described in the Registration Statement,
plus (vii) any expenses accrued by the Borrower in connection with the
allocation of the assets and liabilities of the pension and other
post-retirement employee benefit plans sponsored by ACF Industries LLC between
the Borrower and ACF Industries LLC in accordance with the Employee Benefit
Agreement, effective as of December 1, 2005, between the Borrower and ACF
Industries LLC including, without limitation, any liabilities assumed or
payments made by the Borrower in connection therewith, less (viii) any non-cash
compensation that subsequently becomes payable in cash during such period, in
each case, to the extent that the amount specified in clause (ii), (iii), (iv),
(v), (vi), (vii) or (viii) hereof is included in the calculation of net income
for such period.

            "Eligible Assignee" means (i) a Lender or any Affiliate thereof;
(ii) a commercial bank organized or licensed under the laws of the United States
or a state thereof having total assets in excess of $500,000,000; (iii) a
finance company, insurance company or other financial institution or fund, which
is regularly engaged in making, purchasing or investing in loans and having
total assets in excess of $500,000,000; or (iv) a savings and loan association
or savings bank organized under the laws of the United States or a state thereof
which has a net worth, determined in accordance with GAAP, in excess of
$500,000,000; provided, however, that (A) each Eligible Assignee under clauses
(ii) through (iv) hereof shall be reasonably acceptable to the Agent and, so
long as no Event of Default is continuing, the Borrower and (B) nothing herein
shall restrict or require the consent of any Person to the pledge by any Lender
of all or any portion of its rights and interests under this Agreement, its
Notes or any other Loan Document to any Federal Reserve Bank in accordance with
Regulation A of the Board of Governors of the Federal Reserve System or U.S.
Treasury Regulation 31 CFR 203.14, and such Federal Reserve Bank may enforce
such pledge in any manner permitted by applicable law.

                                      -5-
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            "Eligible Inventory" means only such Inventory of the Borrower
located in the United States consisting of raw materials or finished goods,
which is free from any claim of title or Lien in favor of any Person (other than
Liens in favor of the Agent) and with respect to which no event has occurred and
no condition exists which could reasonably be expected to impair substantially
the Borrower's ability to use or sell such Inventory in the ordinary course of
its business. No Inventory of the Borrower shall be Eligible Inventory unless
the Agent has a perfected first priority Lien thereon. The value of Eligible
Inventory shall be computed at the lower of cost (computed on a "first in, first
out" basis) or market. Any Inventory of the Borrower that is not in the control
or possession of the Borrower and is covered by a warehouse receipt, a bill of
lading or other document of title shall in no event be Eligible Inventory unless
such warehouse receipt, bill of lading or document of title is in the name of or
held by the Agent. No Inventory of the Borrower shall be Eligible Inventory
unless (i) it is located on property owned by the Borrower; or (ii) it is
located on property leased by the Borrower or in a contract warehouse (A) which
is subject to a Collateral Access Agreement executed by the mortgagee, lessor or
contract warehouseman, as the case may be, or (B) with respect to which the
Agent has established a reserve from the Borrowing Base in an amount equal to
the rent or fees payable to the applicable lessor or warehouseman for a
three-month period and, in either case such Inventory is segregated or otherwise
separately identifiable from goods of others, if any, stored on the premises. No
Inventory of the Borrower shall be Eligible Inventory if it is in transit or it
is consigned to or from the Borrower. In addition, and without limitation of the
foregoing, the Agent may treat any Inventory as ineligible if:

            (a) it is not owned solely by the Borrower or the Borrower does not
have sole and good, valid and marketable title thereto; or

            (b) it is packing or shipping materials or maintenance supplies; or

            (c) it is goods returned or rejected by the Borrower's customer; or

            (d) it (i) is excess (as so reserved by the Borrower from time to
time), (ii) is obsolete, defective, damaged, unmerchantable or consists of an
amount of Inventory in excess of a two-year supply, (iii) is samples or
inventory on hand which is used for promotional and other sales activities, or
(iv) does not otherwise conform to the representations and warranties contained
in the Loan Documents; or

            (e) it is repossessed, attached, seized, made subject to a writ or
distress warrant, levied upon or brought within the possession of any receiver,
trustee, custodian or assignee for the benefit of creditors; or

            (f) it is Inventory acquired by the Borrower in or as part of (i) a
"bulk" transfer or sale of assets and such acquisition is not consummated in the
ordinary course of business unless the Borrower has complied with all applicable
bulk sales or bulk transfer laws in connection with such acquisition or (ii) any
acquisition of assets from another Person other than in the ordinary course of
business and such Inventory is not satisfactory to the Agent or has not been
inspected by the Agent in a collateral audit examination.

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            "Eligible Receivables" means and includes only those unpaid
Receivables of the Borrower, without duplication, which (i) arise out of a bona
fide sale of goods or rendition of services of the kind ordinarily sold or
rendered by the Borrower in the ordinary course of its business, (ii) are owed
by a Person competent to contract for such goods or services that is not an
Affiliate or an employee of the Borrower and is not controlled by an Affiliate
of the Borrower, (iii) are not subject to renegotiation or redating, (iv) are
free and clear of any Lien in favor of any Person other than Liens in favor of
the Agent and (v) mature as stated in the invoice or other supporting data
covering such sale or services. No Receivable of the Borrower shall be an
Eligible Receivable (i) unless the Agent has a perfected first priority Lien
thereon, (ii) if it is more than ninety days past the date of the original
invoice therefor or more than sixty days past its due date or (iii) unless the
delivery of the goods or the rendition of the services giving rise to such
Receivable has been completed. The Agent may treat any Receivable as ineligible
if:

            (a) any warranty contained in this Agreement or in any other Loan
Document with respect to such Receivable or in any assignment or statement of
warranties or representations relating to such Receivable delivered by the
Borrower to the Agent has been breached or is untrue in any material respect or
the Borrower is not in compliance with all applicable laws with respect to such
Receivable; or

            (b) the account debtor has disputed liability, has asserted a right
of setoff or has made any claim with respect to any other Receivable due from
such account debtor to the Borrower, to the extent of the amount of such dispute
or claim, or the amount of such actual or asserted right of setoff, as the case
may be; or

            (c) the account debtor or any of its assets is the subject of an
Insolvency Event or is reasonably likely to become the subject of an Insolvency
Event; or

            (d) the account debtor has called a meeting of its creditors to
obtain any general financial accommodation; or

            (e) the account debtor is also a supplier to the Borrower, to the
extent of the aggregate amount owed by the Borrower to the account debtor; or

            (f) the sale or rendition of services is to an account debtor
outside the United States of America or Canada, unless it is on letter of
credit, acceptance or other terms reasonably acceptable to the Required Lenders;
or

            (g) twenty-five percent (25%) or more of the accounts of any account
debtor to the Borrower are unpaid more than ninety days past the date of the
original invoices therefor; or

            (h) except for Receivables due from American Railcar Leasing, LLC
(if it is not an Affiliate of the Borrower at such time), General Electric
Capital Corp., CIT Group, Inc., Union Pacific Corporation, Greenbrier Equity
Group, LLC and Union Tank Car Company and any of their respective Affiliates,
and except as determined by the Agent in its sole discretion, the amount owed by
the account debtor under such Receivable and under all other Receivables owed by
such account debtor exceeds twenty percent (20%) of all Eligible Receivables,
but only to the extent of such excess; or

                                      -7-
<PAGE>

            (i) the account debtor is the United States of America or any
department, agency or instrumentality thereof, unless the Borrower assigns its
right to payment under such Receivable to the Agent as collateral hereunder in
full compliance with (including, without limitation, the filing of a written
notice of the assignment and a copy of the assignment with, and receipt of
acknowledgment thereof by, the appropriate contracting and disbursing offices
pursuant to) the Assignment of Claims Act of 1940, as amended (U.S.C. Section
3727; 41 U.S.C. Section 15); or

            (j) it was acquired by the Borrower in or as part of an acquisition
of assets from another Person and such Receivable is not satisfactory to the
Agent or has not been reviewed by the Agent in a collateral examination audit.

            "Environmental Laws" means all federal, state and local statutes,
laws (including common or case law), regulations or orders applicable to the
business or property of a Person relating to pollution or protection of human
health or the environment (including, without limitation, ambient air, surface
water, ground water, land surface or subsurface strata) including, without
limitation, laws and regulations relating to emissions, discharges, releases or
threatened releases of Hazardous Materials, or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of any Hazardous Materials.

            "Equipment" means all machinery, equipment, furniture, fixtures,
leasehold improvements, conveyors, tools, materials, storage and handling
equipment, hydraulic presses, cutting equipment, computer equipment and
hardware, including central processing units, terminals, drives, memory units,
embedded computer programs and supporting information, printers, keyboards,
screens, peripherals and input or output devices, molds, dies, stamps, and other
equipment of every kind and nature and wherever situated now or hereafter owned
by a Person or in which a Person may have any interest as lessee or otherwise
(to the extent of such interest), together with all additions and accessions
thereto, all replacements and all accessories and parts therefor, all manuals,
blueprints, know-how, warranties and records in connection therewith and all
rights against suppliers, warrantors, manufacturers, and sellers or others in
connection therewith, together with all substitutes for any of the foregoing.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
29 U.S.C. Sections 1000 et seq., amendments thereto, successor statutes, and
regulations or guidelines promulgated thereunder.

            "ERISA Affiliate" means any entity required to be aggregated with
the Borrower under Section 414(b), (c), (m) or (o) of the Internal Revenue Code.

            "Event of Default" means the occurrence of any of the events
specified in Section 9.1.

            "Excluded Receivables" means Receivables (i) with respect to which
the account debtors are Affiliates of the Borrower and (ii) that do not arise
from the sale of Inventory.

            "Expiration Date" means the earlier of (i) January 23, 2009 and (ii)
the date of termination of the Commitments.

                                      -8-
<PAGE>

            "Federal Funds Rate" means, for any period, a fluctuating interest
rate per annum equal, for each day during such period, to the weighted average
of the rates on overnight Federal Funds transactions with members of the Federal
Reserve System arranged by Federal Funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rate is not so published for any
day that is a Business Day, the average of the quotations for such day on such
transactions received by the Agent from three Federal Funds brokers of
recognized standing selected by it.

            "Federal Reserve Board" means the Board of Governors of the Federal
Reserve System or any Person succeeding to the functions thereof.

            "Fee Letter" means the letter agreement as to the payment by the
Borrower of certain fees to the Agent, both for its own account and for the
ratable benefit of the Lenders.

            "Financial Covenants" means the covenants set forth in Article VIII.

            "Financial Statements" means, with respect to the Borrower and its
Subsidiaries, the balance sheets, profit and loss statements, statements of cash
flow, and statements of changes in intercompany accounts, if any, for the period
specified, prepared in accordance with GAAP and consistent with prior practices
applied to the Borrower's financial statements.

            "Fixed Charge Coverage Ratio" means (without duplication), for any
period, with respect to the Borrower, as of the date of determination thereof,
the ratio of (X) (i) EBITDA for such period, less (ii) all Capital Expenditures
(other than (A) Capital Expenditures financed by Persons other than the Lenders
or by Loans and (B) Capital Expenditures, not to exceed $10,000,000 in the
aggregate for the Borrower's 2005 fiscal year, relating to the construction of a
"paint line" at the Borrower's facility in Paragould, Arkansas and for which the
Borrower shall thereafter seek financing from Persons other than the Lenders)
paid or payable during such period (other than from proceeds of Loans), less
(iii) all tax liabilities paid during such period to (Y) (i) all scheduled
principal amounts of Indebtedness paid or scheduled to be paid during such
period, plus (ii) all Interest Expense and all fees for the use of money or the
availability of money, including commitment, facility and like fees and charges
upon Indebtedness (including Indebtedness to the Lenders) paid or payable during
such period, plus (iii) without limitation of Section 7.2(d) or 9.2, all loans
and Investments to any Person (including, without limitation, any Affiliate of
the Borrower) made during such period plus (iv) without limitation of Section
9.2, all dividends, stock repurchases or other distributions paid or payable in
cash on account of the Borrower's capital stock or other equity interests during
such period less (v) any proceeds of the IPO used to repay any Indebtedness or
redeem preferred stock of the Borrower or to fund or pay any of the items
specified in clauses (Y)(ii), (iii) or (iv) during such period.

            "GAAP" means generally accepted accounting principles set forth in
the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board that are applicable
to the circumstances as of the date of determination.

            "Governing Documents" means, with respect to any Person, the
certificate of incorporation and bylaws or similar organizational documents of
such Person.

                                      -9-
<PAGE>

            "Governmental Authority" means any nation or government, any state
or other political subdivision thereof or any entity exercising executive,
legislative, judicial, regulatory or administrative functions thereof or
pertaining thereto.

            "Hazardous Materials" means any and all pollutants, contaminants and
toxic, caustic, radioactive and hazardous materials, substances and wastes
including, without limitation, petroleum or petroleum distillates, asbestos or
urea formaldehyde foam insulation or asbestos-containing materials, whether or
not friable, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature, that are regulated under any
Environmental Laws.

            "Hedging Agreement" means any interest rate protection agreement,
foreign currency exchange agreement, commodity price protection agreement or
other interest or currency exchange rate or commodity price hedging agreement.

            "Indebtedness" means, with respect to the Borrower or any other
Person, as of the date of determination thereof (without duplication), (i) all
obligations of such Person for borrowed money of any kind or nature, including
funded and unfunded debt, and any Hedging Agreements or arrangements therefor,
regardless of whether the same is evidenced by any note, debenture, bond or
other instrument, (ii) all obligations of such Person to pay the deferred
purchase price of property or services (other than current trade accounts
payable under normal trade terms and which arise in the ordinary course of
business), (iii) all obligations of such Person to acquire or for the
acquisition or use of any fixed asset, including Capitalized Lease Obligations
(other than, in any such case, any portion thereof representing interest or
deemed interest or payments in respect of taxes, insurance, maintenance or
service), or improvements which are payable over a period longer than one year,
regardless of the term thereof or the Person or Persons to whom the same are
payable, (iv) the then outstanding amount of withdrawal or termination liability
incurred by or imposed on the Borrower or its Subsidiaries under ERISA, (v) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right to be secured) a Lien on any asset of such Person whether
or not the Indebtedness is assumed by such Person, provided that, for the
purpose of determining the amount of Indebtedness of the type described in this
clause (v), if recourse with respect to such Indebtedness is limited to the
assets of such Person, then the amount of Indebtedness shall be limited to the
fair market value of such assets, (vi) all Indebtedness of others to the extent
guaranteed by such Person and (vii) all obligations of such Person in respect of
letters of credit, bankers acceptances or similar instruments issued or accepted
by banks or other financial institutions for the account of such Person. For the
avoidance of doubt, (A) Indebtedness as defined herein shall include all
Indebtedness of a Person owing to an Affiliate of such Person and (B)
obligations of a Person under an Operating Lease shall not constitute
Indebtedness.

            "Insolvency Event" means, with respect to any Person, the occurrence
of any of the following: (i) such Person shall be adjudicated insolvent or
bankrupt or institutes proceedings to be adjudicated insolvent or bankrupt, or
shall generally fail to pay or admit in writing its inability to pay its debts
as they become due, (ii) such Person shall seek dissolution or reorganization or
the appointment of a receiver, trustee, custodian or liquidator for it or a
substantial portion of its property, assets or business or to effect a plan or
other arrangement with its creditors, (iii) such Person shall make a general
assignment for the benefit of its creditors, or

                                      -10-
<PAGE>

consent to or acquiesce in the appointment of a receiver, trustee, custodian or
liquidator for a substantial portion of its property, assets or business, (iv)
such Person shall file a voluntary petition under any bankruptcy, insolvency or
similar law, (v) such Person shall take any corporate or similar act in
furtherance of any of the foregoing, or (vi) such Person, or a substantial
portion of its property, assets or business, shall become the subject of an
involuntary proceeding or petition for (A) its dissolution or reorganization or
(B) the appointment of a receiver, trustee, custodian or liquidator, and (I)
such proceeding shall not be dismissed or stayed within ninety days or (II) such
receiver, trustee, custodian or liquidator shall be appointed; provided,
however, that the Lender shall have no obligation to make any Advance during the
pendency of any ninety-day period described in clauses (A) and (B).

            "Interest Expense" means, for any period, all interest with respect
to Indebtedness (including, without limitation, the interest component of
Capitalized Lease Obligations) accrued or capitalized during such period
(whether or not actually paid during such period) determined in accordance with
GAAP.

            "Interest Period" means the period commencing on the date of a LIBOR
Rate Advance and ending one, two or three months thereafter; provided, however,
that (i) the Borrower may not select any Interest Period that ends after the
Expiration Date; (ii) whenever the last day of an Interest Period would
otherwise occur on a day other than a Business Day, the last day of such
Interest Period shall be extended to occur on the next succeeding Business Day,
except that, if such extension would cause the last day of such Interest Period
to occur in the next following calendar month, then the last day of such
Interest Period shall occur on the next preceding Business Day; and (iii) if
there is no corresponding date of the month that is one, two or three months, as
the case may be, after the first day of an Interest Period, such Interest Period
shall end on the last Business Day of such first, second or third month, as the
case may be.

            "Internal Revenue Code" means the Internal Revenue Code of 1986, any
amendments thereto, any successor statute and any regulations and guidelines
promulgated thereunder.

            "Internal Revenue Service" or "IRS" means the United States Internal
Revenue Service and any successor agency.

            "Inventory" means all present and future goods intended for sale,
lease or other disposition including, without limitation, all raw materials,
work in process, finished goods and other retail inventory, goods in the
possession of outside processors or other third parties, consigned goods (to the
extent of the consignee's interest therein), materials and supplies of any kind,
nature or description which are or might be used in connection with the
manufacture, packing, shipping, advertising, selling or finishing of any such
goods, all documents of title or documents representing the same and all
records, files and writings with respect thereto.

            "Investment" in any Person means, as of the date of determination
thereof, (i) any payment or contribution, or commitment to make a payment or
contribution, by a Person including, without limitation, property contributed or
committed to be contributed by such Person for or in connection with its
acquisition of any stock, bonds, notes, debentures, partnership or other
ownership interest or any other security of the Person in whom such

                                      -11-
<PAGE>

Investment is made or (ii) any loan, advance or other extension of credit or
guaranty of or other surety obligation for any Indebtedness of such Person in
whom the Investment is made. In determining the aggregate amount of Investments
outstanding at any particular time, (i) a guaranty (or other surety obligation)
shall be valued at not less than the principal outstanding amount of the primary
obligation; (ii) returns of capital (but only by repurchase, redemption,
retirement, repayment, liquidating dividend or liquidating distribution) shall
be deducted; (iii) earnings, whether as dividends, interest or otherwise, shall
not be deducted; and (iv) decreases in the market value shall not be deducted
unless such decreases are computed in accordance with GAAP.

            "IPO" means the initial public offering of the Borrower's common
stock, which offering was consummated on January 24, 2006.

            "Lender" or "Lenders" has the meaning specified in the introductory
paragraph and shall include the Agent with respect to any Agent Loan.

            "Leverage Ratio" means the ratio specified in Section 8.2.

            "Liabilities" of a Person as of the date of determination thereof
means the liabilities of such Person on such date as determined in accordance
with GAAP. Liabilities to Affiliates of such Person shall be treated in
accordance with GAAP or as otherwise provided herein.

            "LIBOR Rate" means, with respect to each Interest Period, the
reserve adjusted rate per annum equal to the one, two or three-month London
Interbank Offered Rate, as applicable, that appears in the "Money Rates" section
of The Wall Street Journal on the first day of such Interest Period; provided,
however, that if The Wall Street Journal no longer publishes such one, two or
three-month London Interbank Offered Rate, reference shall be made to the Dow
Jones Market Service (formerly Telerate) page 3750 for such London Interbank
Offered Rate.

            "LIBOR Rate Advance" means an Advance that bears interest as
provided in Section 4.1(b).

            "Lien" means any lien, claim, charge, pledge, security interest,
assignment, hypothecation, deed of trust, mortgage, lease, conditional sale,
retention of title or other preferential arrangement having substantially the
same economic effect as any of the foregoing, whether voluntary or imposed by
law.

            "Loan Account" has the meaning specified in Section 2.6.

            "Loan Documents" means this Agreement and all documents and
instruments executed and delivered by the Borrower under or in connection with
this Agreement, as each of the same may be amended, supplemented or otherwise
modified from time to time, including, without limitation, the Notes and the
Blocked Account Agreements.

            "Loans" means the Revolving Credit Loans, the Agent Loans and the
CapEx Loans.

                                      -12-
<PAGE>

            "Material Adverse Effect" means (i) a material adverse effect on the
business, prospects, operations, results of operations, assets, liabilities or
condition (financial or otherwise) of the Borrower, (ii) the impairment of (A)
the Borrower's ability to perform in any material respect its obligations under
the Loan Documents to which it is a party or (B) the ability of the Agent or the
Lenders to enforce the Obligations or realize upon the Collateral or (iii) a
material adverse effect on the value of the Collateral or the amount that the
Agent or the Lenders would be likely to receive (after giving consideration to
delays in payment and costs of enforcement) in the liquidation of the
Collateral; provided, however, that (A) a material adverse change in (I) the
global, United States or regional economy generally, (II) railcar manufacturing
or leasing conditions generally or (III) global or United States securities
markets, (B) a change in laws, rules or regulations applicable to the Borrower
or its business or (C) a change caused by any announcement of the transactions
contemplated by this Agreement shall not, in and of itself, be deemed to have a
Material Adverse Effect.

            "Material Indebtedness" means Indebtedness (other than the Loans),
or obligations in respect of one or more Hedging Agreements, of the Borrower in
an aggregate principal amount exceeding $20,000,000. For purposes of this
definition, the "principal amount" of the obligations of the Borrower in respect
of any Hedging Agreement at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that the Borrower would be required to
pay if such Hedging Agreement were terminated at such time.

            "Maximum Amount of the Facility" means Seventy Five Million Dollars
($75,000,000) as such amount may be decreased from time to time in accordance
with Section 2.10(d) of this Agreement.

            "Multiemployer Plan" means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate has
contributed within the past six years.

            "Net Cash Proceeds" means, the aggregate cash proceeds received by
the Borrower in respect of any sale or other disposition of Equipment purchased
with the proceeds of CapEx Loans, net of (without duplication) (i) the
reasonable out-of-pocket expenses incurred in effecting such sale or other
disposition and (ii) any taxes reasonably attributable to such asset sale and
reasonably estimated by the Borrower to be actually payable.

            "NFBC" has the meaning specified in the introductory paragraph.

            "Notes" means the CapEx Notes and the Revolving Credit Notes.

            "Obligations" means and includes all loans (including the Loans),
advances (including the Advances), debts, liabilities, obligations, covenants
and duties owing by the Borrower to the Agent or the Lenders of any kind or
nature, present or future, whether or not evidenced by any note, guaranty or
other instrument, which may arise under, out of, or in connection with, this
Agreement, the Notes, the other Loan Documents or any other agreement executed
in connection herewith or therewith, whether or not for the payment of money,
whether arising by reason of an extension of credit, opening, guaranteeing or
confirming of a letter of credit, loan, guaranty, indemnification or in any
other manner, whether direct or indirect

                                      -13-
<PAGE>

(including those acquired by assignment, purchase, discount or otherwise),
whether absolute or contingent, due or to become due, and however acquired. The
term includes, without limitation, all Loans made in excess of the limitations
specified in Section 2.5(a) and all interest (including interest accruing on or
after an Insolvency Event, whether or not such interest constitutes an allowed
claim), charges, expenses, commitment, facility, closing and collateral
management fees, attorneys' fees, and any other sum properly chargeable to the
Borrower under this Agreement, the Notes, the other Loan Documents or any other
agreement executed in connection herewith or therewith.

            "Operating Lease" means a lease treated as an operating lease in
accordance with GAAP.

            "Original Loan Agreement" has the meaning given in the first
Recital.

            "PBGC" means the Pension Benefit Guaranty Corporation and any Person
succeeding to the functions thereof.

            "Pension Plan" means a pension plan (as defined in Section 3(2) of
ERISA) subject to Title IV of ERISA (other than a Multiemployer Plan) which the
Borrower or any ERISA Affiliate sponsors or maintains, or to which it makes, is
making, or is obligated to make contributions, or, in the case of a multiple
employer plan (as described in Section 4064(a) of ERISA), has made contributions
at any time during the immediately preceding five plan years.

            "Permitted Liens" means such of the following as to which no
enforcement, collection, execution, levy or foreclosure proceeding shall have
been commenced and be continuing (unless such enforcement, collection, levy or
foreclosure relates to liabilities not exceeding $1,000,000 in the aggregate and
is being contested by the Borrower in good faith by appropriate proceedings
diligently conducted and for which adequate reserves are being maintained in
accordance with GAAP): (i) Liens for taxes, assessments and other governmental
charges or levies or the claims or demands of landlords, carriers, warehousemen,
mechanics, laborers, materialmen and other like Persons arising by operation of
law in the ordinary course of business for sums which are not yet due and
payable, (ii) deposits or pledges (other than Liens on Collateral) to secure the
payment of worker's compensation, unemployment insurance or other social
security benefits or obligations, public or statutory obligations, surety or
appeal bonds, bid or performance bonds, or other obligations of a like nature
incurred in the ordinary course of business, (iii) zoning restrictions,
easements, encroachments, licenses, restrictions or covenants on the use of any
Property which do not materially impair either the use of such Property in the
operation of the business of the Borrower or the value of such Property, (iv)
inchoate Liens arising under ERISA to secure current service pension liabilities
as they are incurred under the provisions of employee benefit plans from time to
time in effect, and (v) rights of general application reserved to or vested in
any Governmental Authority to control or regulate any Property, or to use any
Property in a manner which does not materially impair the use of such Property
for the purposes for which it is held by the Borrower, provided that the
foregoing Liens under clauses (i) through (v) hereof do not secure liabilities
in excess of $5,000,000 in the aggregate at any time, and provided further that
Permitted Liens shall not include any Lien securing Indebtedness.

                                      -14-
<PAGE>

            "Person" means any individual, sole proprietorship, partnership,
limited liability company, joint venture, trust, unincorporated organization,
joint stock company, association, corporation, institution, entity, party or
government (including any division, agency or department thereof) or any other
legal entity, whether acting in an individual, fiduciary or other capacity, and,
as applicable, the successors, heirs and assigns of each. For the avoidance of
doubt, a Subsidiary or other Affiliate of the Borrower shall constitute a
separate Person.

            "Plan" means any employee benefit plan, as defined in Section 3(3)
of ERISA, maintained or contributed to by the Borrower or any Subsidiary (other
than a Multiemployer Plan) or with respect to which any of them may incur
liability even if such plan is not covered by ERISA pursuant to Section 4(b)(4)
thereof.

            "Pledged Deposit Accounts" means the deposit accounts specified in
Schedule 2, any other Blocked Accounts and any other deposit account of the
Borrower in which any proceeds of any Collateral are on deposit from time to
time.

            "Prohibited Transaction" means a prohibited transaction within the
meaning of Section 406 of ERISA or Section 4975 of the Internal Revenue Code for
which a statutory or class exemption is not available or a private exemption has
not previously been obtained from the Department of Labor.

            "Property" means any real property owned, leased or controlled by
the Borrower.

            "Pro Rata Share" of any amount means, with respect to any Lender, a
fraction (expressed as a percentage) (i) at any time before the Expiration Date,
the numerator of which is the Commitment of such Lender and the denominator of
which is the aggregate amount of the Commitments of all the Lenders, and (ii) at
any time on and after the Expiration Date, the numerator of which is the
aggregate unpaid principal amount of the Loans made by such Lender and the
denominator of which is the aggregate unpaid principal amount of all Loans, at
such time.

            "Qualification" or "Qualified" means, with respect to any report of
independent public accountants covering Financial Statements, a material
qualification to such report (i) resulting from a limitation on the scope of
examination of such Financial Statements or the underlying data, (ii) as to the
capability of the Borrower to continue operations as a going concern or (iii)
which could be eliminated by changes in Financial Statements or notes thereto
covered by such report (such as by the creation of or increase in a reserve or a
decrease in the carrying value of assets) and which if so eliminated by the
making of any such change and after giving effect thereto would result in a
Default or an Event of Default.

            "Receivables" means all present and future accounts, leases,
instruments and chattel paper and all claims against third parties, drafts,
acceptances, letters of credit, rights to receive payments under letters of
credit, letter-of-credit rights, book accounts, credits, reserves, computer
tapes, programs, discs, software, books, ledgers, files and records relating to
such accounts, leases, instruments and chattel paper, together with all
supporting obligations and all right, title, security and guaranties with
respect to any of the foregoing, including any right of stoppage in transit.

                                      -15-
<PAGE>

            "Registration Statement" means the Registration Statement on Form
S-1A (File No. 333-128177) of American Railcar Industries, Inc., a Missouri
corporation, filed with the Securities and Exchange Commission on October 5,
2005, as amended, and the Borrower's Registration Statement on Form S-1 (File
No. 333-130284), filed with the Securities and Exchange Commission on December
13, 2005, as amended.

            "Replacement Lender" means a financial institution proposed by the
Borrower in accordance with Section 2.10(d) that is reasonably satisfactory to
the Agent and which has agreed to acquire and assume all or a part of a
Defaulting Lender's Loans and Commitments under Section 2.10(d).

            "Reportable Event" means any of the events described in Section 4043
of ERISA and the regulations thereunder, other than a reportable event for which
the thirty-day notice requirement to the PBGC has been waived.

            "Required Lenders" means (i) before the Expiration Date, the Lenders
holding more than fifty percent of the aggregate Commitments at such time and
(ii) on and after the Expiration Date, the Lenders holding more than fifty
percent of the aggregate unpaid principal amount of the Loans at such time or,
if NFBC holds more than fifty percent of the Commitments at such time and there
are at least three Lenders, "Required Lenders" means NFBC and one other Lender.

            "Requirement of Law" means (i) the Governing Documents, (ii) any
law, treaty, rule, regulation, order or determination of an arbitrator, court or
other Governmental Authority or (iii) any franchise, license, lease, permit,
certificate, authorization, qualification, easement, right of way, or other
right or approval binding on the Borrower or any of its property.

            "Responsible Officer" means the Chairman of the Board, the
President, the Chief Executive Officer, the Chief Financial Officer, the Chief
Operating Officer, the Controller, the Assistant Controller, the Treasurer or
the Assistant Treasurer of the Borrower, as each such term is defined or
otherwise used in the bylaws of the Borrower or in any resolution of the
Borrower's board of directors, or any other individual designated in writing by
the Chairman of the Board, the President, the Chief Executive Officer or the
Chief Financial Officer of the Borrower as a "Responsible Officer" for purposes
hereof.

            "Revolving Credit Loans" has the meaning specified in Section
2.1(a).

            "Revolving Credit Note" has the meaning specified in Section 2.1(c).

            "Settlement" has the meaning specified in Section 2.3(i).

            "Settlement Date" has the meaning specified in Section 2.3(i).

            "Solvent" means, when used with respect to any Person, that as of
the date as to which such Person's solvency is to be measured:

                                      -16-
<PAGE>

                  (i) the fair saleable value of its assets is in excess of (A)
            the total amount of its liabilities (including contingent,
            subordinated, absolute, fixed, matured, unmatured, liquidated and
            unliquidated liabilities) and (B) the amount that will be required
            to pay the probable liability of such Person on its debts as such
            debts become absolute and matured;

                  (ii) it has sufficient capital to conduct its business; and

                  (iii) it is able to meet its debts as they mature.

            "Subsidiary" means a corporation or other entity in which the
Borrower directly or indirectly owns or controls the shares of stock or other
ownership interests having ordinary voting power to elect a majority of the
board of directors or other governing body, or to appoint the majority of the
managers of, such corporation or other entity.

            "Termination Event" means (i) a Reportable Event with respect to any
Pension Plan; (ii) the withdrawal of the Borrower or any ERISA Affiliate from a
Pension Plan during a plan year in which it was a "substantial employer" (as
defined in Section 4001(a)(2) of ERISA); (iii) the providing of notice of intent
to terminate a Pension Plan in a distress termination (as described in Section
4041(c) of ERISA); (iv) the institution by the PBGC of proceedings to terminate
or appoint a trustee to administer a Pension Plan; (v) the receipt by the
Borrower or any ERISA Affiliate of notice from a Multiemployer Plan that it is
in reorganization or insolvent under Section 4241 or 4245 of ERISA or that
intends to terminate or has terminated under Section 4041A of ERISA; or (vi) the
partial or complete withdrawal, within the meaning of Sections 4203 and 4205 of
ERISA, of the Borrower or any ERISA Affiliate from a Multiemployer Plan.

            "Type" means a Base Rate Advance or a LIBOR Rate Advance.

            SECTION 1.2 Accounting Terms and Determinations. Unless otherwise
defined or specified herein, all accounting terms used in this Agreement shall
be construed in accordance with GAAP, applied on a basis consistent in all
material respects with the Financial Statements delivered to the Agent on or
before the Closing Date. All accounting determinations for purposes of
determining compliance with Article VIII shall be made in accordance with GAAP
as in effect on the Closing Date and applied on a basis consistent in all
material respects with the audited Financial Statements delivered to the Agent
on or before the Closing Date. The Financial Statements required to be delivered
hereunder from and after the Closing Date, and all financial records, shall be
maintained in accordance with GAAP. If GAAP shall change from the basis used in
preparing the audited Financial Statements delivered to the Agent on or before
the Closing Date, the Compliance Certificates required to be delivered pursuant
to Section 7.1 shall include calculations setting forth the adjustments
necessary to demonstrate how the Borrower is in compliance with the Financial
Covenants based upon GAAP as in effect on the Closing Date.

            SECTION 1.3 Other Terms; Headings. Unless otherwise defined herein,
terms used herein that are defined in the Uniform Commercial Code, from time to
time in effect in the State of New York (the "Code"), shall have the meanings
given in the Code. An Event of

                                      -17-
<PAGE>

Default shall "continue" or be "continuing" unless and until such Event of
Default has been waived or cured within any grace period specified therefor
under Section 9.1. The headings and the Table of Contents are for convenience
only and shall not affect the meaning or construction of any provision of this
Agreement. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words "include",
"includes" and "including" shall be deemed to be followed by the phrase "without
limitation". The word "will" shall be construed to have the same meaning and
effect as the word "shall". Unless the context requires otherwise (i) any
definition of or reference to any agreement, instrument or other document herein
or in any other Loan Document shall be construed as referring to such agreement,
instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements
or modifications set forth herein or in any other Loan Document), (ii) any
reference herein to any Person shall be construed to include such Person's
successors and assigns, (iii) the words "herein", "hereof" and "hereunder", and
words of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof, (iv) all references herein
to Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, this Agreement and (v)
the words "asset" and "property" shall be construed to have the same meaning and
effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights.

                                   ARTICLE II.
                              THE CREDIT FACILITIES

            SECTION 2.1 The Revolving Credit Loans.

            (a) Each Lender severally agrees, subject to Section 2.5(a) and the
other terms and conditions of this Agreement, to make revolving credit loans
(the "Revolving Credit Loans") to the Borrower, from time to time from the
Closing Date to but excluding the Expiration Date, at the Borrower's request to
the Agent, in an aggregate principal amount which, after giving effect thereto,
would not cause the aggregate principal amount of all outstanding Loans made by
such Lender to exceed such Lender's Commitment reduced by such Lender's Pro Rata
Share of the amount, if any, by which the Maximum Amount of the Facility exceeds
(i) 85% of Eligible Receivables plus (ii) 65% of Eligible Inventory (not to
exceed $40,000,000) less (iii) any reserves established by the Agent in
accordance with the terms of this Agreement (the "Borrowing Base"); provided,
however, that in no event shall the aggregate amount of the Revolving Credit
Loans of all the Lenders outstanding at any time exceed the Maximum Amount of
the Facility less the aggregate outstanding principal amount of the CapEx Loans.

            (b) The Agent, at any time in the exercise of its commercially
reasonable discretion, may (i) establish and increase (or decrease) reserves
against Eligible Receivables and Eligible Inventory for variances in collateral
reporting based on tests conducted during examinations of the Collateral and
(ii) impose additional restrictions (or eliminate the same) to the standards of
eligibility set forth in the definitions of "Eligible Receivables" and "Eligible
Inventory" based on information obtained by the Agent from its examination of
the Collateral, the books and records of the Borrower, public information and
information furnished to the Agent by the Borrower or its Affiliates.

                                      -18-
<PAGE>

            (c) The Revolving Credit Loans made by each Lender shall be
evidenced by a promissory note payable to the order of such Lender,
substantially in the form of Exhibit A (as amended, supplemented or otherwise
modified from time to time, a "Revolving Credit Note"), executed by the Borrower
and delivered to the Agent on the Closing Date. The Revolving Credit Note
payable to the order of a Lender shall be in a stated maximum principal amount
equal to such Lender's Pro Rata Share of the Maximum Amount of the Facility.

            (d) The Revolving Credit Loans shall be payable in full, with all
interest accrued thereon, on the Expiration Date. The Borrower may borrow, repay
and reborrow Revolving Credit Loans, in whole or in part, in accordance with the
terms hereof.

            SECTION 2.2 CapEx Loans. (a) The Lenders agree, subject to Section
2.5 and the other terms and conditions of this Agreement, to make loans to the
Borrower to finance the purchase by the Borrower of Equipment (the "CapEx
Loans"), from time to time from the Closing Date to but excluding the date that
is six months before the Expiration Date, at the Borrower's request to the
Agent, the aggregate principal amount at any time outstanding which shall not
exceed the lesser of (i) $15,000,000 and (ii) 80% of the cost of such Equipment
(excluding the cost of any software, warranties or other intangible assets
related thereto).

            (b) Each CapEx Loan shall be in a minimum principal amount of
$3,000,000, and no more than five CapEx Loans may be outstanding at any time.

            (c) The CapEx Loans shall be evidenced by a promissory note payable
to the order of each Lender, substantially in the form of Exhibit B (as amended,
supplemented or otherwise modified from time to time, the "CapEx Notes"),
executed by the Borrower and delivered to each Lender on the Closing Date. The
CapEx Note payable to the order of a Lender shall be in a stated maximum
principal amount equal to such Lender's Pro Rata Share of $15,000,000.

            (d) The principal amount of each CapEx Loan shall be payable in
equal and consecutive monthly installments each in an amount equal to 1.67% of
the amount of such CapEx Loan on the first Business Day of each month commencing
on the first Business Day following the first anniversary of the Closing Date
or, if such CapEx Loan is made after the first anniversary of the Closing Date,
on the first Business Day of the month following the month in which such CapEx
Loan is made, provided that the entire unpaid principal balance of each CapEx
Loan shall be payable in full, with all interest accrued thereon, on the
Expiration Date. Amounts repaid on account of a CapEx Loan may not be reborrowed
as a CapEx Loan, provided that, (i) to the extent a repayment or prepayment, in
whole or in part, of a CapEx Loan creates availability to borrow Revolving
Credit Loans, such amounts may be reborrowed as Revolving Credit Loans; and (ii)
to the extent any CapEx Loan is repaid or prepaid in full (and not in part),
such amounts may be reborrowed as CapEx Loans to finance a different item of
Equipment.

            SECTION 2.3 Procedure for Borrowing; Notices of Borrowing; Notices
of Continuation; Notices of Conversion; Settlement.

            (a) Each borrowing of Revolving Credit Loans or CapEx Loans (each, a
"Borrowing") shall be made on notice, given not later than 12:00 Noon (New York
time) on the

                                      -19-
<PAGE>

third Business Day prior to the date of the proposed Borrowing in the case of a
LIBOR Rate Advance, and not later than 12:00 Noon (New York time) on the date of
the proposed Borrowing in the case of a Base Rate Advance, by the Borrower to
the Agent. Each such notice of a Borrowing shall be by telecopier, substantially
in the form of Exhibit E (a "Notice of Borrowing"), specifying therein the
requested (i) date of such Borrowing, (ii) Type of Advance comprising such
Borrowing, (iii) aggregate principal amount of such Borrowing, (iv) Interest
Period, in the case of a LIBOR Rate Advance and (v) whether such requested
Borrowing is of a Revolving Credit Loan or a CapEx Loan. In the case of a
proposed Borrowing of a CapEx Loan, the Borrower shall deliver with the Notice
of Borrowing a copy of the invoice, purchase order, sales agreement or similar
document applicable to the Equipment to be financed with the proceeds thereof,
which machinery or equipment shall be used or useful in the manufacture or
servicing of railcars or reasonably satisfactory to the Agent.

            (b) With respect to any Borrowing consisting of a LIBOR Rate
Advance, the Borrower may, subject to the provisions of Section 2.3(d) and so
long as all the conditions set forth in Article V have been fulfilled, elect to
maintain such Borrowing or any portion thereof as a LIBOR Rate Advance by
selecting a new Interest Period for such Borrowing, which new Interest Period
shall commence on the last day of the Interest Period then ending. Each
selection of a new Interest Period (a "Continuation") shall be made by notice
given not later than 12:00 Noon (New York time) on the third Business Day prior
to the date of any such Continuation by the Borrower to the Agent. Each such
notice of a Continuation shall be by telecopier, substantially in the form of
Exhibit F (a "Notice of Continuation"), specifying whether the Advance subject
to the requested Continuation comprises part (or all) of the Revolving Credit
Loans or the CapEx Loans and the requested (i) date of such Continuation, (ii)
Interest Period and (iii) aggregate amount of the Advance subject to such
Continuation, which shall comply with all limitations on Loans hereunder. Upon
the Agent's receipt of a Notice of Continuation, the Agent shall promptly notify
each Lender thereof. Unless, on or before 12:00 Noon (New York time) of the
third Business Day prior to the expiration of an Interest Period, the Agent
shall have received a Notice of Continuation from the Borrower for the entire
Borrowing consisting of the LIBOR Rate Advance outstanding during such Interest
Period, any amount of such Advance comprising such Borrowing remaining
outstanding at the end of such Interest Period (or any unpaid portion of such
Advance not covered by a timely Notice of Continuation) shall, upon the
expiration of such Interest Period, be Converted to a Base Rate Advance.

            (c) The Borrower may on any Business Day upon notice (each such
notice, a "Notice of Conversion") given by the Borrower to the Agent, and
subject to the provisions of Section 2.3(d), Convert the entire amount of or a
portion of an Advance of one Type into an Advance of another Type; provided,
however, that any Conversion of a LIBOR Rate Advance into a Base Rate Advance
shall be made on, and only on, the last day of an Interest Period for such LIBOR
Rate Advance. Each such Notice of Conversion shall be given not later than 12:00
Noon (New York time) on the Business Day prior to the date of any proposed
Conversion into a Base Rate Advance and on the third Business Day prior to the
date of any proposed Conversion into a LIBOR Rate Advance. Subject to the
restrictions specified above, each Notice of Conversion shall be by telecopier,
substantially in the form of Exhibit G, specifying (i) the requested date of
such Conversion, (ii) the Type of Advance to be Converted, (iii) the requested
Interest Period, in the case of a Conversion into a LIBOR Rate Advance, and (iv)
the amount of such Advance to be Converted and whether such amount comprises
part (or all) of the Revolving

                                      -20-
<PAGE>

Credit Loans or the CapEx Loans. Upon the Agent's receipt of a Notice of
Conversion, the Agent shall promptly notify each Lender thereof. Each Conversion
shall be in an aggregate amount not less than $1,000,000 or an integral multiple
of $500,000 in excess thereof.

            (d) Anything in subsection (b) or (c) above to the contrary
notwithstanding,

                  (i) if, at least one Business Day before the date of any
            requested LIBOR Rate Advance, the introduction of or any change in
            or in the interpretation of any law or regulation makes it unlawful,
            or any central bank or other Governmental Authority asserts that it
            is unlawful, for any Lender to perform its obligations hereunder to
            make a LIBOR Rate Advance or to fund or maintain a LIBOR Rate
            Advance hereunder (including in the case of a Continuation or a
            Conversion), such Lender shall promptly deliver written notice of
            such circumstance to the Agent, and the Agent shall promptly deliver
            such notice to the Borrower, and the right of the Borrower to select
            a LIBOR Rate Advance for such Borrowing or any subsequent Borrowing
            (including a Continuation or a Conversion) shall be suspended until
            the circumstances causing such suspension no longer exist, and any
            Advance comprising such requested Borrowing shall be a Base Rate
            Advance;

                  (ii) if, at least one Business Day before the first day of any
            Interest Period, the Agent is unable to determine the LIBOR Rate for
            LIBOR Rate Advances comprising any requested Borrowing, Continuation
            or Conversion, the Agent shall promptly give written notice of such
            circumstance to the Borrower, and the right of the Borrower to
            select or maintain LIBOR Rate Advances for such Borrowing or any
            subsequent Borrowing shall be suspended until the Agent shall notify
            the Borrower that the circumstances causing such suspension no
            longer exist, and any Advance comprising such Borrowing shall be a
            Base Rate Advance;

                  (iii) if any Lender shall, at least one Business Day before
            the date of any requested Borrowing or Continuation of, or
            Conversion into, a LIBOR Rate Advance, notify the Agent, which
            notice the Agent shall promptly deliver to the Borrower, that the
            LIBOR Rate for Advances comprising such Borrowing, Continuation or
            Conversion will not adequately reflect the cost to such Lender of
            making or funding Advances for such Borrowing, the right of the
            Borrower to select LIBOR Rate Advances shall be suspended until such
            Lender shall notify the Borrower that the circumstances causing such
            suspension no longer exist, and any Advance comprising such
            Borrowing shall be a Base Rate Advance;

                  (iv) there shall not be outstanding at any time more than
            three Borrowings which consist of LIBOR Rate Advances;

                  (v) each Borrowing which consists of LIBOR Rate Advances shall
            be in an amount equal to $1,000,000 or a whole multiple of $500,000
            in excess thereof; and

                                      -21-
<PAGE>

                  (vi) if a Default has occurred and is continuing, no LIBOR
            Rate Advances may be borrowed or continued as such and no Base Rate
            Advance may be Converted into a LIBOR Rate Advance.

            (e) Each Notice of Borrowing, Notice of Continuation and Notice of
Conversion shall be irrevocable and binding on the Borrower. The Borrower agrees
to pay to the Agent for the account of the Lenders $300 for each and any (i)
default by the Borrower in making a Borrowing of, Conversion into or
Continuation of a LIBOR Rate Advance after the Borrower has given notice
requesting the same, (ii) default by the Borrower in payment when due of the
principal amount of or interest on any LIBOR Rate Advance or (iii) making of a
payment or prepayment of a LIBOR Rate Advance on a day which is not the last day
of an Interest Period with respect thereto.

            (f) Promptly after its receipt of a Notice of Borrowing under
Section 2.3(a), the Agent shall elect, in its sole and absolute discretion, (i)
to have the terms of Section 2.3(g) apply to the requested Borrowing or (ii) in
the case of a request for Revolving Credit Loans, to make a Loan under Section
2.3(h) to the Borrower in the amount of the requested Borrowing.

            (g) (i) If the Agent shall elect to have the terms of this Section
2.3(g) apply to a requested Borrowing as described in Section 2.3(f)(i), then,
promptly after its receipt of a Notice of Borrowing under Section 2.3(a), the
Agent shall notify the Lenders in writing (by telecopier or otherwise as
permitted hereunder) of the requested Borrowing. Each Lender shall make the
amount of such Lender's Pro Rata Share of the requested Borrowing available to
the Agent in same day funds, for the account of the Borrower, at the Agent's
Payment Account prior to 2:00 P.M. (New York time), on the Borrowing Date
requested by the Borrower. The proceeds of such Borrowing will then be made
available to the Borrower by the Agent wire transferring to the Borrower's
Account the aggregate of the amounts made available to the Agent by the Lenders,
and in like funds as received by the Agent by 2:00 P.M. (New York time), on the
requested Borrowing Date.

                  (ii) Unless the Agent receives contrary written notice prior
to the date of any proposed Borrowing, the Agent is entitled to assume that each
Lender will make available its Pro Rata Share of such Borrowing and, in reliance
upon that assumption, but without any obligation to do so, may advance such Pro
Rata Share on behalf of such Lender. If and to the extent that such Lender shall
not have made such amount available to the Agent, but the Agent has made such
amount available to the Borrower, such Lender and the Borrower jointly and
severally agree to pay and repay the Agent forthwith on demand such
corresponding amount and to pay interest thereon, for each day from the date
such amount is transferred by the Agent to the Borrower's Account until the date
such amount is paid or repaid to the Agent, at (A) in the case of the Borrower,
the interest rate applicable at such time to such Loan and (B) in the case of
each Lender, for the period from the date such amount was wire transferred to
the Borrower's Account to (and including) three days after demand therefor by
the Agent to such Lender, at the Federal Funds Rate and, following such third
day, at the interest rate applicable at such time to such Loan together with all
costs and expenses incurred by the Agent in connection therewith. If a Lender
shall pay to the Agent any or all of such amount, such amount so paid shall
constitute a Revolving Credit Loan or a CapEx Loan, as applicable, by such
Lender to the Borrower for purposes of this Agreement.

                                      -22-
<PAGE>

            (h) If the Agent shall elect, in its sole and absolute discretion,
to have the terms of this Section 2.3(h) apply to a requested Borrowing of
Revolving Credit Loans (as described in Section 2.3(f)(ii)), the Agent shall
make a Loan in the amount of such requested Borrowing (any such Loan made solely
by NFBC under this Section 2.3(h) being referred to as an "Agent Loan")
available to the Borrower in same day funds by wire transferring such amount to
the Borrower's Account by 2:00 P.M. (New York time) on the requested Borrowing
Date. Each Agent Loan shall be subject to all the terms and conditions
applicable hereunder to the Revolving Credit Loans except that all payments
thereon shall be payable to the Agent solely for its own account (and for the
account of the holder of any participation interest with respect to such Agent
Loan). The Agent shall not make any Agent Loan if (i) any one or more of the
conditions precedent specified in Section 5.2 will not be satisfied on the
requested Borrowing Date for the applicable Borrowing unless the Agent, in its
reasonable business judgment, deems the making of such Loan necessary or
desirable (A) to preserve or protect the Collateral or any portion thereof, (B)
to enhance the likelihood of, or maximize the amount of, repayment of the Loans
and the other Obligations, or (C) to pay any other amount chargeable to the
Borrower under this Agreement or any other Loan Document including, without
limitation, costs, fees and expenses as described in Section 11.4 or (ii) the
requested Borrowing would cause the aggregate outstanding amount of Revolving
Credit Loans and Agent Loans to exceed the Maximum Amount of the Facility (less
the aggregate outstanding principal amount of CapEx Loans) or the Borrowing Base
on such Borrowing Date, except that the Agent may, in its discretion and without
the consent of any of the Lenders, voluntarily permit, for periods of up to
thirty consecutive Business Days, the aggregate outstanding amount of the
Revolving Credit Loans and the Agent Loans at any time and from time to time to
exceed the Borrowing Base by an amount up to the lesser of (A) ten percent (10%)
of the Borrowing Base and (B) $2,500,000. For purposes of the preceding
sentence, the discretion granted to the Agent hereunder shall not preclude
involuntary overadvances that may result from time to time due to the fact that
the Borrowing Base was unintentionally exceeded for any reason, including,
without limitation, Collateral previously deemed to be either "Eligible
Receivables" or "Eligible Inventory," as applicable, becomes ineligible,
Collections of Receivables applied to reduce outstanding Loans are thereafter
returned for insufficient funds or overadvances are made to protect or preserve
the Collateral, all of which involuntary overadvances shall be repaid by the
Borrower on demand. The Agent Loans shall be secured by the Collateral, shall
constitute Loans and Obligations hereunder and shall bear interest at the rate
in effect from time to time applicable to the Revolving Credit Loans comprised
of Base Rate Advances, including any increase in such rate that is applicable
under Section 4.2. The Agent shall notify each Lender in writing of each Agent
Loan as soon as reasonably practicable.

            (i) Each Lender's funded portion of any Loan is intended to be equal
at all times to such Lender's Pro Rata Share of all outstanding Loans.
Notwithstanding such agreement, the Agent and the other Lenders agree (which
agreement shall not be for the benefit of or enforceable by the Borrower) that,
to facilitate the administration of this Agreement and the other Loan Documents,
settlement among them as to the Loans and the Agent Loans shall take place on a
periodic basis in accordance with the following provisions:

                  (i) The Agent shall request settlement ("Settlement") with the
            Lenders on a weekly basis, or on a more frequent basis if so
            determined by the Agent, with respect to (A) each outstanding Agent
            Loan and (B) all payments made by the

                                      -23-
<PAGE>

            Borrower on account of the Loans, in each case by notifying the
            Lenders of such requested Settlement by telephone, confirmed
            immediately in writing (by telecopier or otherwise as permitted
            hereunder), prior to 12:00 Noon (New York time) on the date of such
            requested Settlement (any such date being a "Settlement Date").

                  (ii) Each Lender shall make the amount of such Lender's Pro
            Rata Share of the outstanding principal amount of the Agent Loan
            with respect to which Settlement is requested available to the Agent
            in same day funds, for itself or for the account of NFBC, to the
            Agent's Payment Account prior to 2:00 P.M. (New York time), on the
            Settlement Date applicable thereto, regardless of whether the
            conditions precedent specified in Section 5.2 have then been
            satisfied. Such amounts made available to the Agent shall be applied
            against the amounts of the applicable Agent Loan and, together with
            the portion of such Agent Loan representing NFBC's Pro Rata Share
            thereof, shall constitute Revolving Credit Loans of such Lenders. If
            any such amount is not made available to the Agent by any Lender on
            the Settlement Date applicable thereto, the Agent shall be entitled
            to recover such amount on demand from such Lender together with
            interest thereon at the Federal Funds Rate for the first three days
            from and after such Settlement Date and thereafter at the interest
            rate then applicable to Base Rate Loans.

                  (iii) Notwithstanding the foregoing, not more than one
            Business Day after demand is made by the Agent (whether before or
            after the occurrence of a Default or an Event of Default), each
            Lender (other than NFBC) shall irrevocably and unconditionally
            purchase and receive from the Agent, without recourse or warranty,
            an undivided interest and participation in such Agent Loan to the
            extent of such Lender's Pro Rata Share thereof, by paying to the
            Agent, in same day funds, an amount equal to such Lender's Pro Rata
            Share of such Agent Loan, regardless of whether the conditions
            precedent specified in Section 5.2 have then been satisfied. If such
            amount is not made available to the Agent by any Lender, the Agent
            shall be entitled to recover such amount on demand from such Lender
            together with interest thereon at the Federal Funds Rate for the
            first three days from and after such demand and thereafter at the
            interest rate then applicable to the Revolving Credit Loans for Base
            Rate Advances, including any increase in such rate that is
            applicable under Section 4.2.

                  (iv) From and after the date, if any, on which any Lender
            purchases an undivided interest and participation in an Agent Loan
            under clause (iii) above, the Agent shall promptly distribute to
            such Lender such Lender's Pro Rata Share of all payments of
            principal and interest received by the Agent in respect of such
            Agent Loan.

            SECTION 2.4 Application of Proceeds. The proceeds of the Revolving
Credit Loans shall be used by the Borrower for its general working capital
purposes, to fund loans to and investments in Affiliates of the Borrower to the
extent permitted under Section 7.2(d), to pay dividends to the extent permitted
under Section 9.2(c)(H), to finance capital expenditures, to

                                      -24-
<PAGE>

repay the Borrower's Indebtedness under the Original Loan Agreement and to pay
expenses incurred by the Borrower in connection herewith. The proceeds of the
CapEx Loans shall be used by the Borrower to finance the purchase of Equipment.

            SECTION 2.5 Maximum Amount of the Facility; Mandatory Prepayments;
Optional Prepayments.

            (a) In no event shall the sum of (i) the aggregate outstanding
principal balances of the Revolving Credit Loans and the Agent Loans exceed the
lesser of (A) the Borrowing Base and (B) the Maximum Amount of the Facility less
the aggregate outstanding principal amount of the CapEx Loans, (ii) the
aggregate outstanding principal balance of the CapEx Loans exceed the lesser of
(A) 80% of the costs of the Equipment financed with the proceeds of the CapEx
Loans (excluding the cost of any software, warranties or other intangible assets
related thereto) and (B) $15,000,000 or (iii) the aggregate outstanding
principal balances of the Loans exceed the Maximum Amount of the Facility.

            (b) In addition to any prepayment required as a result of an Event
of Default hereunder, the Loans shall be subject to mandatory prepayment as
follows:

                  (i) immediately upon discovery by or notice to the Borrower
            that any of the lending limits set forth in Sections 2.1(a), 2.2(a)
            or 2.5(a) has been exceeded, an amount sufficient to reduce the
            outstanding balances of the Loans to the applicable maximum allowed
            amount shall become due and payable by the Borrower without the
            necessity of a demand by the Agent or any Lender;

                  (ii) the outstanding principal amount of the CapEx Loans shall
            be immediately prepaid by an amount equal to 100% of all Net Cash
            Proceeds, which shall be applied to the outstanding installments
            under the CapEx Loans in inverse order of maturity; and

                  (iii) the entire outstanding principal amount of the Loans,
            together with all accrued and unpaid interest thereon and all fees,
            costs and expenses payable by the Borrower hereunder, shall become
            due and payable on the Expiration Date.

            (c) The Borrower may prepay any or all of the Loans, without penalty
or premium, subject to Section 2.3(e)(iii). Amounts prepaid on account of a
CapEx Loan (i) shall be applied to the installments under such CapEx Loan in
inverse order of maturity and (ii) may not be reborrowed as a CapEx Loan,
provided that, (A) to the extent a repayment or prepayment, in whole or in part,
of a CapEx Loan creates availability to borrow Revolving Credit Loans, such
amounts may be reborrowed as Revolving Credit Loans; and (B) to the extent any
CapEx Loan is repaid or prepaid in full (and not in part), such amounts may be
reborrowed as CapEx Loans to finance a different item of Equipment.

            SECTION 2.6 Maintenance of Loan Account; Statements of Account. The
Agent shall maintain an account on its books in the name of the Borrower (the
"Loan Account") in which the Borrower will be charged with all Loans and
Advances made by each Lender to the Borrower or for the Borrower's account,
including the Revolving Credit Loans, the Agent Loans, the CapEx Loans,
interest, fees, expenses and any other Obligations. The Loan Account will be

                                      -25-
<PAGE>

credited with all amounts received by the Agent from the Borrower or for the
Borrower's account, including, as set forth below, all amounts received from the
Blocked Account Banks. The Agent shall send the Borrower a monthly statement
reflecting the activity in the Loan Account. Each such statement shall be an
account stated and shall be final, conclusive and binding on the Borrower,
absent manifest error.

            SECTION 2.7 Collection of Receivables. The Borrower currently
maintains and continue to maintain one or more blocked accounts (each, a
"Blocked Account") at all times. Upon notice given by the Agent to the Borrower
at any time after the occurrence of an Availability Event or, in the Agent's
discretion, during the continuation of an Event of Default (a "Blocked Account
Notice"), unless and until the Agent revokes such Blocked Account Notice in
writing, the Borrower shall promptly remit to a Blocked Account all Collections
including all checks, drafts and other documents and instruments evidencing
remittances in payment (collectively, "Items of Payment"). The Borrower, the
Agent and a Blocked Account Bank shall enter into an agreement, in form and
substance satisfactory to the Agent, the Borrower and such Blocked Account Bank
(as amended, supplemented or otherwise modified from time to time, a "Blocked
Account Agreement"), which, among other things, shall provide for the opening of
a Blocked Account for the deposit of Collections at such Blocked Account Bank.
At all times after the delivery of a Blocked Account Notice (unless and until
the Agent revokes such Blocked Account Notice in writing), all Collections and
other amounts received by the Borrower from any account debtor, in addition to
all other cash proceeds of the Collateral, shall upon receipt be deposited into
a Blocked Account. The Agent will credit all such payments to the Loan Account,
conditional upon final collection; credit will be given only for cleared funds
received prior to 2:00 P.M. (New York time) by the Agent at its account at North
Fork Bank, Melville, New York (Account #3124059415), or such other bank as the
Agent may designate; provided, however, that for purposes of calculating
interest due to the Lenders, credit will be given to collections one Business
Day after receipt of cleared funds. In all cases, the Loan Account will be
credited only with the net amounts actually received in payment of their
Receivables. The Borrower will not commingle any Items of Payment with any of
its other funds or property, but will segregate them from its other assets and
will hold them in trust and for the account and as the property of the Agent. At
any time (i) after the delivery of a Blocked Account Notice (unless and until
the Agent revokes such Blocked Account Notice in writing) or (ii) during the
continuation of an Event of Default, the Borrower shall endorse any Items of
Payment upon the request of the Agent. Items of Payment will be processed in
accordance with the Blocked Account Agreements.

            SECTION 2.8 Term. The term of this Agreement shall be for a period
from the Closing Date to but not including the Expiration Date unless sooner
terminated in accordance with the terms of this Agreement. Notwithstanding the
foregoing, the Borrower shall have no right to terminate this Agreement at any
time that any principal of or interest on any of the Loans is outstanding,
except upon prepayment of all Obligations.

            SECTION 2.9 Payment Procedures.

            (a) The Borrower hereby authorizes the Agent to charge the Loan
Account with the amount of all principal, interest, fees, expenses and other
payments to be made

                                      -26-
<PAGE>

hereunder and under the other Loan Documents. The Agent may, but shall not be
obligated to, discharge the Borrower's payment obligations hereunder by so
charging the Loan Account.

            (b) Each payment by the Borrower on account of principal, interest,
fees or expenses hereunder shall be made to the Agent for the benefit of the
Agent and the Lenders according to the their respective rights thereto. All
payments to be made by the Borrower hereunder and under the Notes, whether on
account of principal, interest, fees or otherwise, shall be made without setoff,
deduction or counterclaim and shall be made prior to 2:00 P.M. (New York time)
on the due date thereof to the Agent, for the account of the Lenders according
to their Pro Rata Shares (except as expressly otherwise provided), at the
Agent's Payment Account in immediately available funds. Except for payments
which are expressly provided to be made (i) for the account of the Agent only or
(ii) under the settlement provisions of Section 2.3(i), the Agent shall
distribute all payments to the Lenders on the Business Day following receipt in
like funds as received. Notwithstanding anything to the contrary contained in
this Agreement, if a Lender exercises its right of setoff under Section 11.3 or
otherwise, any amounts so recovered shall promptly be shared by such Lender with
the other Lenders according to their respective Pro Rata Shares.

            (c) The Agent shall apply all amounts received by it on account of
the Obligations from the Borrower, from the Blocked Account Banks or from any
other source first, to fees, costs and expenses, second, to interest and third,
to the principal amount of the Obligations, except that, during the continuance
of an Event of Default, the Agent may, with the consent of the Required Lenders,
apply such amounts to such of the Obligations and in such order as it may elect
in its sole and absolute discretion.

            (d) Whenever any payment to be made hereunder shall be stated to be
due on a day that is not a Business Day, the payment may be made on the next
succeeding Business Day (except as specified in clause (ii) of the definition of
Interest Period) and such extension of time shall be included in the computation
of the amount of interest due hereunder.

            SECTION 2.10 Defaulting Lenders.

            (a) A Lender that (i) fails to pay the Agent its Pro Rata Share of
any Loans made available by the Agent on such Lender's behalf or (ii) fails to
pay any other amount owing by it to the Agent hereunder, is a defaulting lender
(a "Defaulting Lender"). The Agent may recover all such amounts owing by a
Defaulting Lender on demand.

            (b) The failure of any Lender to fund its Pro Rata Share of any
Borrowing shall not relieve any other Lender of its obligation to fund its Pro
Rata Share of such Borrowing. Conversely, no Lender shall be responsible for the
failure of another Lender to fund such other Lender's Pro Rata Share of a
Borrowing.

            (c) The Agent shall not be obligated to transfer to a Defaulting
Lender any payments made by the Borrower to the Agent for the Defaulting
Lender's benefit; nor shall a Defaulting Lender be entitled to the sharing of
any payments hereunder. Amounts payable to a Defaulting Lender shall instead be
paid to or retained by the Agent. The Agent may hold and, in its discretion,
re-lend to the Borrower the amount of all such payments received or retained by
it

                                      -27-
<PAGE>

for the account of such Defaulting Lender. For purposes of voting or consenting
to matters with respect to the Loan Documents and determining Pro Rata Shares,
such Defaulting Lender shall be deemed not to be a Lender and such Lender's
Commitment or Loans made by it, as applicable, for such purposes shall be deemed
to be zero. This Section shall remain effective with respect to such Lender
until (i) the Defaulting Lender has paid all amounts required to be paid to the
Agent hereunder or (ii) the Required Lenders, the Agent and the Borrower shall
have waived such Lender's default in writing. The operation of this Section
shall not be construed to increase or otherwise affect the Commitment of any
Lender or to relieve or excuse the performance by any of the Borrower of its
duties and obligations hereunder.

            (d) The Borrower may, by notice (a "Replacement Notice") in writing
to the Agent and a Defaulting Lender, (i) request such Defaulting Lender to
cooperate with the Borrower in obtaining a Replacement Lender for such
Defaulting Lender; (ii) request the non-Defaulting Lenders to acquire and assume
all or a portion of such Defaulting Lender's Loans and Commitment, but none of
such Lenders shall be obligated to do so; or (iii) propose a Replacement Lender.
If a Replacement Lender shall be accepted by the Agent or one or more of the
non-Defaulting Lenders shall agree to acquire and assume all or part of a
Defaulting Lender's Loans and Commitment, then such Defaulting Lender shall
assign, in accordance with Section 11.7, all or part, as the case may be, of its
Loans, Commitment, Notes and other rights and obligations under this Agreement
and all other Loan Documents to such Replacement Lender or non-Defaulting
Lenders, as the case may be, in exchange for payment of the principal amount of
the Loans so assigned and all interest and fees accrued on such amount so
assigned; provided, however, that (i) such assignment shall be on the terms and
conditions set forth in Section 11.7, and (ii) prior to any such assignment, the
Borrower shall have (A) paid to such Defaulting Lender all amounts properly
demanded and theretofore unpaid by the Borrower under the second sentence of
Section 2.3(e) (less costs and expenses incurred by the Borrower directly as a
result of the actions of the Defaulting Lender in violation of this Agreement)
and (B) paid to the Agent all amounts properly demanded and theretofore unpaid
by the Borrower under Article IV. If the Replacement Lender and the
non-Defaulting Lenders shall only be willing to acquire less than all of a
Defaulting Lender's outstanding Loans and Commitment, the Commitment of such
Defaulting Lender shall not terminate, but shall be reduced proportionately, and
such Defaulting Lender shall continue to be a "Lender" hereunder with a reduced
Commitment and Pro Rata Share. Upon the effective date of such assignment, the
Borrower shall issue replacement Notes to such Replacement Lender,
non-Defaulting Lenders and Defaulting Lender, as the case may be, in exchange
for the Notes of such Defaulting Lender theretofore outstanding, and such
Replacement Lender shall, if not already a Lender, become a "Lender" for all
purposes under this Agreement and the other Loan Documents.

            SECTION 2.11 Sharing of Payments, Etc. If any Lender shall obtain at
any time any payment (whether voluntary, involuntary, through the exercise of
any right of setoff, or otherwise) on account of Obligations payable to such
Lender hereunder at such time in excess of its ratable share (according to the
proportion of (i) the amount of such Obligations to (ii) the aggregate amount of
the Obligations payable to all Lenders hereunder at such time), such Lender
shall forthwith purchase from the other Lenders such participations in the
Obligations payable to them as shall be necessary to cause such purchasing
Lender to share the excess payment ratably with each of them; provided, however,
that, if all or any portion of such excess payment is thereafter recovered from
such purchasing Lender, such purchase from each other Lender shall

                                      -28-
<PAGE>

be rescinded and such other Lender shall repay to the purchasing Lender the
purchase price to the extent of such other Lender's ratable share (according to
the proportion of (i) the purchase price paid to such Lender to (ii) the
aggregate purchase price paid to all Lenders) of such recovery together with an
amount equal to such Lender's ratable share (according to the proportion of (i)
the amount of such other Lender's required repayment to (ii) the total amount so
recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so recovered.
The Borrower agrees that any Lender so purchasing a participation from another
Lender pursuant to this Section 2.11 may, to the fullest extent permitted by
law, exercise all its rights of payment (including the right of setoff) with
respect to such participation as fully as if such Lender were the direct
creditor of the Borrower in the amount of such participation.

            SECTION 2.12 Publicity. The Agent or any Lender may, with the
consent of the Borrower (which shall not be unreasonably withheld or delayed),
publish a tombstone or similar advertising material relating to the financing
transactions contemplated by this Agreement. The Agent or such Lender shall
provide a draft of any such tombstone or similar advertising material to the
Borrower for review and comment before the publication thereof. The Agent
reserves the right to provide to industry trade organizations information
necessary and customary for inclusion in league table measurements.

                                  ARTICLE III.
                                    SECURITY

            SECTION 3.1 General. To secure the prompt and complete payment and
performance when due (whether at stated maturity, by acceleration or otherwise)
of all of the Obligations, the Borrower hereby grants to the Agent for the
ratable benefit of the Lenders a lien on and security interest in all of its
right, title and interest in and to the Collateral, wherever located, whether
now owned or hereafter acquired, and all additions and accessions thereto and
substitutions and replacements therefor and improvements thereon, and all
proceeds (whether in the form of cash or other property) and products thereof
including, without limitation, all proceeds of insurance covering the same and
all tort claims in connection therewith. As further security for the
Obligations, and to provide other assurances to the Agent and the Lenders, the
Agent and the Lenders shall receive, among other things, the Blocked Account
Agreements and any agreements or documentation the Agent determines, in its sole
discretion, that are necessary or desirable to perfect the Agent's lien on the
Collateral including, without limitation, any Equipment financed with proceeds
of any CapEx Loans. This Agreement shall constitute a security agreement for
purposes of the Code.

            SECTION 3.2 Recourse to Security. Recourse to security shall not be
required for any Obligation hereunder and the Borrower hereby waives any
requirement that the Agent or the Lenders exhaust any right or take any action
against any of the Collateral before proceeding to enforce the Obligations
against the Borrower.

            SECTION 3.3 Special Provisions Relating to Inventory.

            (a) All Inventory. The security interest in the Inventory granted to
the Agent hereunder shall continue through all steps of manufacture and sale and
attach without further act

                                      -29-
<PAGE>

to raw materials, work in process, finished goods, returned goods, documents of
title and warehouse receipts, and to proceeds resulting from the sale or other
disposition of such Inventory. Until all of the Obligations have been satisfied
and the Commitments have been terminated, the Agent's security interest in such
Inventory and in all proceeds thereof shall continue in full force and effect
and, if an Event of Default is continuing, the Agent shall have the right to
take physical possession of such Inventory and to maintain it on the premises of
the Borrower, in a public warehouse, or at such other place as the Agent may
deem appropriate. If the Agent exercises such right to take possession of such
Inventory, the Borrower will, upon demand, and at the Borrower's cost and
expense, assemble such Inventory and make it available to the Agent at a place
or places convenient to the Agent.

            (b) No Liens. All Inventory of the Borrower shall be maintained at
the locations therefor shown on Schedule 6.1(b), except for Inventory moved from
such locations solely for the purpose of sale in the ordinary course of the
Borrower's business and Inventory in transit in the ordinary course of the
Borrower's business.

            (c) Further Assurances. The Borrower will, upon the Agent's request,
perform any and all steps that are necessary to perfect the Agent's security
interests in the Borrower's Inventory including, without limitation, placing and
maintaining signs, executing and filing financing or continuation statements in
form and substance satisfactory to the Agent, maintaining stock records and
conducting lien searches. In each case, the Borrower shall take such action as
promptly as possible after requested by the Agent but in any event within five
Business Days after any such request is made except that the Borrower shall take
such action immediately upon the Agent's request following the occurrence of an
Event of Default. If the Borrower's Inventory is in the possession or control of
any Person other than a purchaser in the ordinary course of business or a public
warehouseman where the warehouse receipt is in the name of or held by the Agent,
the Borrower shall notify such Person of the Agent's security interest therein
and, upon request, instruct such Person to acknowledge in writing its agreement
to hold all such Inventory for the benefit of the Agent and subject to the
Agent's instructions. If so requested by the Agent, the Borrower (as promptly as
possible after requested by the Agent but in any event within five Business Days
after any such request is made) will deliver (i) to the Agent warehouse receipts
covering any of the Borrower's Inventory located in warehouses showing the Agent
as the beneficiary thereof and (ii) to the warehouseman such agreements relating
to the release of warehouse Inventory as the Agent may request. If so requested
by the Agent, the Borrower shall execute and deliver to the Agent a confirmatory
written instrument, in form and substance satisfactory to the Agent, listing all
its Inventory, but any failure to execute or deliver the same shall not limit or
otherwise affect the Agent's security interest in and to such Inventory.

            (d) Inventory Records. The Borrower shall maintain full, accurate
and complete records of its Inventory describing the kind, type and quantity of
such Inventory and the Borrower's cost therefor, withdrawals therefrom and
additions thereto, including a perpetual inventory for raw materials, work in
process and finished goods.

                                      -30-
<PAGE>

            SECTION 3.4 Special Provisions Relating to Receivables.

            (a) Invoices, Etc. If an Event of Default or Availability Event is
continuing, on the Agent's request therefor, the Borrower shall furnish to the
Agent (i) the originals of all promissory notes and other instruments in favor
of the Borrower, (ii) copies of invoices to customers and shipping and delivery
receipts or warehouse receipts thereof, (iii) the originals of all letters of
credit in its favor, (iv) such endorsements or assignments related to such
letters of credit, notes, and instruments as the Agent may reasonably request
and (v) the written consent of the issuer of any letter of credit to the
assignment of the proceeds of such letter of credit by the Borrower to the
Agent.

            (b) Records, Collections, Etc. The Borrower shall promptly report
all customer credits to the Agent. The Borrower shall notify the Agent of all
returns and of all claims asserted with respect to merchandise, in each case
with a value in excess of $5,000,000. The Borrower shall promptly report to the
Agent each such return, providing the Agent with a description of the returned
item. The Borrower shall not, without the Agent's prior written consent, settle
or adjust any dispute or claim, or grant any discount (except ordinary trade
discounts), credit or allowance or accept any return of merchandise, except in
the ordinary course of its business. During the continuance of an Event of
Default, the Agent may (i) settle or adjust disputes or claims directly with
account debtors for amounts and upon terms which it considers advisable and (ii)
notify account debtors on the Borrower's Receivables that such Receivables have
been assigned to the Agent, and that payments in respect thereof shall be made
directly to the Agent. Where the Borrower receives collateral of any kind or
nature by reason of transactions between itself and its customers or account
debtors, the Borrower will hold the same on the Agent's behalf, subject to the
Agent's instructions, and as property forming part of the Borrower's
Receivables. Where the Borrower sells goods or services to a customer which also
sells goods or services to it or which may have other claims against it, the
Borrower will so advise the Agent immediately to permit the Agent to establish a
reserve therefor. The Borrower shall maintain a record of its electronic chattel
paper that identifies the Agent as the assignee thereof and otherwise in a
manner such that the Agent has control over such chattel paper for purposes of
the Code.

            (c) Excluded Receivables. Excluded Receivables shall not be governed
by this Section 3.4.

            SECTION 3.5 Special Provisions Relating to Equipment.

            (a) Location. Each item of Equipment of the Borrower financed with
the proceeds of CapEx Loans will be kept at the location therefor shown on
Schedule 6.1(b) and may not be moved without the prior written consent of the
Agent except to another location of the Borrower specified for it on Schedule
6.1(b). The Borrower shall at all times hereafter keep correct and accurate
records itemizing and describing the location, kind, type, age and condition of
its Equipment financed with the proceeds of CapEx Loans, the Borrower's cost
therefor and accumulated depreciation thereof, and retirements, sales, or other
dispositions thereof, all of which records shall be available during the
Borrower's usual business hours on demand to any of the officers, employees or
agents of the Agent.

                                      -31-
<PAGE>

            (b) Repair. The Borrower shall keep all of its Equipment that was
purchased with the proceeds of CapEx Loans in a state of repair and operating
condition in accordance with industry standards, in each case with ordinary wear
and tear excepted and will not waste or destroy it or any part thereof. The
Borrower will use or cause its Equipment to be used in accordance with law and
the manufacturer's instructions. The Borrower shall keep its Equipment separate
from, and will not annex or affix any of its Equipment to, any part of any
Property or any other realty if in so doing the Equipment would become so much a
part of real estate that the security interest therein would become unperfected
without the filing of a fixture filing, in which case the Borrower shall, at
least ten days before so annexing or affixing such Equipment, notify the Agent
and cooperate with the preparation and filing of such a fixture filing in favor
of the Agent before so annexing or affixing such Equipment.

            (c) Disposal. Where the Borrower is permitted to dispose of any of
its Equipment under this Agreement or by any consent thereto hereafter given by
the Agent, the Borrower shall do so at arm's length and in good faith.

            SECTION 3.6 Continuation of Liens, Etc. The Borrower shall defend
the Collateral against all claims and demands of all Persons at any time
claiming any interest therein, other than claims relating to Liens permitted by
the Loan Documents. The Borrower agrees to comply with the requirements of all
state and federal laws to grant to the Agent valid and perfected first priority
security interests in the Collateral, subject only to Permitted Liens. The Agent
is hereby authorized by the Borrower, during the continuance of an Event of
Default, to sign the Borrower's name on any document or instrument as may be
necessary or desirable to establish and maintain the Liens covering the
Collateral and the priority and continued perfection thereof or file any
financing or continuation statements or similar documents or instruments
covering the Collateral whether or not the Borrower's signature appears thereon.
The Borrower agrees, from time to time, at the Agent's request, to file notices
of Liens, financing statements, similar documents or instruments, and
amendments, renewals and continuations thereof, and cooperate with the Agent's
representatives, in connection with the continued perfection (and the priority
status thereof) and protection of the Collateral and the Agent's Liens thereon.
The Borrower agrees that the Agent may file a carbon, photographic or other
reproduction of this Agreement (or any financing statement related hereto) as a
financing statement.

            SECTION 3.7 Power of Attorney. In addition to all of the powers
granted to the Agent in this Article III, the Borrower hereby appoints and
constitutes the Agent as the Borrower's attorney-in-fact to sign the Borrower's
name on any of the documents, instruments and other items described in Section
3.6, to make any filings under the Uniform Commercial Code covering any of the
Collateral, and to request at any time from customers indebted on its
Receivables verification of information concerning such Receivables and the
amount owing thereon (provided that any verification prior to an Event of
Default shall not contain the Agent's name), and, during the continuance of an
Event of Default, (i) to convey any item of Collateral to any purchaser thereof
and (ii) to make any payment or take any act necessary or desirable to protect
or preserve any Collateral. The Agent's authority hereunder shall include,
without limitation, the authority to execute and give receipt for any
certificate of ownership or any document, to transfer title to any item of
Collateral and to take any other actions arising from or incident to the powers
granted to the Agent under this Agreement. This power of attorney is

                                      -32-
<PAGE>
coupled with an interest and is irrevocable, provided that it shall terminate
upon the payment and satisfaction of all Obligations in full and the termination
of the Commitments.

                                  ARTICLE IV.
                           INTEREST, FEES AND EXPENSES

            SECTION 4.1 Interest. The Borrower shall pay to the Agent for the
ratable benefit of the Lenders, interest on the Advances, payable monthly in
arrears on the first day of each month, commencing with the month immediately
following the Closing Date, and on the Expiration Date, at the following rates
per annum:

            (a) Base Rate Advances. If such Advance is a Base Rate Advance, at a
fluctuating rate which is equal to (i) the Base Rate then in effect less (ii)
(A) 0.50% in the case of a Revolving Credit Loan or (B) 0.25% in the case of a
CapEx Loan, each change in such fluctuating rate to take effect simultaneously
with the corresponding change in the Base Rate.

            (b) LIBOR Rate Advances. If such Advance is a LIBOR Rate Advance, at
a rate which is equal at all times during the Interest Period for such LIBOR
Rate Advance to (i) the LIBOR Rate plus (ii) (A) 1.50% in the case of a
Revolving Credit Loan or (B) 1.75% in the case of a CapEx Loan.

            SECTION 4.2 Interest After Event of Default. From the date of
occurrence of any Event of Default until the earlier of the date upon which (i)
all Obligations shall have been paid and satisfied in full or (ii) such Event of
Default shall have been cured or waived, interest on the Loans shall be payable
on demand at a rate per annum equal to the rate that would be otherwise
applicable thereto under Section 4.1 plus up to an additional two percent (2%).

            SECTION 4.3 Agent's and Closing Fees. On the Closing Date, the
Borrower shall pay to the Agent, for its own account and for the benefit of the
Lenders, the non-refundable fees specified in the Fee Letter.

            SECTION 4.4 Unused Line Fee. The Borrower shall pay to the Agent for
the ratable benefit of the Lenders on the first day of each month, commencing
with the month immediately following the Closing Date, and on the Expiration
Date, in arrears, an unused line fee equal to three-eighths of one percent
(.375%) per annum of the difference, if positive, between (i) the Maximum Amount
of the Facility and (ii) the average daily aggregate outstanding amount of the
Loans.

            SECTION 4.5 Calculations. All calculations of interest and fees
hereunder shall be made by the Agent on the basis of a year of 360 days for the
actual number of days elapsed in the period for which such interest or fees are
payable. Each determination by the Agent of an interest rate, fee or other
payment hereunder shall be conclusive and binding for all purposes, absent
manifest error.

            SECTION 4.6 Indemnification in Certain Events. If, after the Closing
Date, (i) any change in or in the interpretation of any law or regulation is
introduced including, without limitation, with respect to reserve requirements,
applicable to any Lender or any other banking or financial institution from
which any Lender borrows funds or obtains credit, (ii) any Lender

                                      -33-

<PAGE>

complies with any future guideline or request from any central bank or other
Governmental Authority or (iii) any Lender determines that the adoption of any
applicable law, rule or regulation regarding capital adequacy, or any change
therein, or any change in the interpretation or administration thereof by any
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof has or would have the effect described
below, or any Lender complies with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority, central
bank or comparable agency, and in the case of any event set forth in this clause
(iii), such adoption, change or compliance has or would have the direct or
indirect effect of reducing the rate of return on such Lender's capital as a
consequence of its obligations hereunder to a level below that which such Lender
could have achieved but for such adoption, change or compliance (taking into
consideration such Lender's policies as the case may be with respect to capital
adequacy) by an amount deemed by such Lender to be material, and any of the
foregoing events described in clauses (i), (ii) and (iii) increases the cost to
such Lender of funding or maintaining the Loans, or reduces the amount
receivable in respect thereof by such Lender, then the Borrower shall, upon
demand by the Agent, pay to the Agent for the benefit of such Lender additional
amounts sufficient to indemnify such Lender against such increase in cost or
reduction in amount receivable. Each Lender agrees that, if it becomes aware of
the occurrence of any such event or condition that would cause it to incur any
material increased cost to fund or maintain the Loans or that would reduce the
amount receivable in respect thereof in any material respect, it will notify the
Agent (and the Agent will notify the Borrower) as promptly as practicable of
such event or condition and will use its reasonable efforts to make, fund or
maintain the affected Loans of such Lender in a manner such that the additional
amounts which would otherwise be required to be paid hereunder would be
materially reduced, in each case so long as, in such Lender's reasonable
discretion, the making, funding or maintaining of such Loans in such other
manner would not otherwise materially adversely affect such Loans or such
Lender. If the Borrower shall receive notice from the Agent that amounts are due
to a Lender hereunder, the Borrower may, upon at least five Business Days' prior
written notice to such Lender and the Agent, but not more than sixty days after
receipt of notice from the Agent, identify to the Agent an Eligible Assignee
acceptable to the Borrower and the Agent, which will purchase from such Lender
the Commitment, the amount of outstanding Loans, and the Notes held by such
Lender and such Lender shall thereupon assign its Commitment, any Loans owing to
such Lender, and the Notes held by such Lender to such Eligible Assignee in
accordance with Section 2.10.

            SECTION 4.7 Taxes.

            (a) Subject to Section 4.7(e), any and all payments by the Borrower
hereunder or under the Notes shall be made free and clear of and without
deduction for any and all present or future taxes, levies, imposts, deductions,
charges or withholdings and penalties, interest and all other liabilities with
respect thereto ("Taxes"), excluding any taxes imposed on the net income of the
recipient of such payment (including, without limitation, any taxes imposed on
branch profits) and franchise taxes imposed on such recipient by any applicable
jurisdiction. If the Borrower shall be required by law to deduct any Taxes from
or in respect of any sum payable hereunder or under any Loan to or for the
benefit of the Agent or any Lender, (A) the sum payable shall be increased as
may be necessary so that after making all required deductions of Taxes
(including deductions of Taxes applicable to additional sums payable under this
Section 4.7) the Agent or such Lender receives an amount equal to the sum it
would have received had

                                      -34-

<PAGE>

no such deductions been made, (B) the Borrower shall make such deductions and
(C) the Borrower shall pay the full amount so deducted to the relevant taxation
authority or other authority in accordance with applicable law.

            (b) In addition, the Borrower agrees to pay any present or future
stamp, documentary, excise, privilege, intangible or similar taxes or levies
that arise at any time or from time to time (i) from any payment made under any
and all Loan Documents, or (ii) from the execution or delivery by the Borrower
of, or from the filing or recording or maintenance of, or otherwise with respect
to the exercise by the Agent of its rights under, any and all Loan Documents
(hereinafter referred to as "Other Taxes").

            (c) Within thirty days after the date of any payment of Taxes or
 Other Taxes, the Borrower will, upon request, furnish to the Agent the original
or a certified copy of a receipt evidencing payment thereof.

            (d) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
this Section 4.7 shall survive the indefeasible payment in full of the
Obligations.

            (e) Each Person which acquires (including as a result of the
entering into of this Agreement or the making of a Loan) an interest in this
Agreement or any Loan, on or prior to the effective date of such acquisition,
will deliver to the Borrower and the Agent two valid, duly completed copies of
such documentation (including, without limitation, IRS Form W-9, W-8BEN or
W-8EC1 or any applicable successor form), as is required to establish that such
Person is entitled to receive payments under this Agreement and the Notes
payable to it without deduction or withholding of United States federal income
tax and to establish an exemption from United States backup withholding tax.
Each Person that delivers to the Borrower and the Agent a Form W-9, W-8BEN or
W-8EC1, or any other required form, pursuant to the preceding sentence, further
undertakes to deliver two further copies of such Form, or applicable successor
forms, or other manner of required certification, as the case may be, on or
before the date that any such form expires or becomes obsolete or otherwise is
required to be resubmitted as a condition to obtaining an exemption from a
required withholding of United States federal income tax or after the occurrence
of any event requiring a change in the most recent form previously delivered by
it to the Borrower and the Agent, and such extensions or renewals thereof as may
reasonably be requested by the Borrower and the Agent, certifying (A) in the
case of a Form W-8BEN or W-8EC1, that such Tax Transferee is entitled to receive
payments under this Agreement without deduction or withholding of any United
States federal income taxes, unless any change in treaty, law or regulation or
official interpretation thereof has occurred after the effective date of such
acquisition or change and prior to the date on which any such delivery would
otherwise be required that renders all such forms inapplicable or that would
prevent such Person from duly completing and delivering any such form with
respect to it, and such Person advises the Borrower and the Agent that it is not
capable of receiving payments without any deduction or withholding of United
States federal income tax or (B) in the case of a Form W-9, establishing an
exemption from United States backup withholding tax. If the Agent, a Lender or
any other Person fails to comply with this Section 4.7(e), such Person shall not
be entitled to the benefits of Section 4.7(a).

                                      -35-

<PAGE>

                                   ARTICLE V.
                              CONDITIONS OF LENDING

            SECTION 5.1 Conditions to Initial Loan. The obligation of the
Lenders to make the initial Loan is subject to the satisfaction of the following
conditions prior to or concurrent with such initial Loan:

            (a) the Agent shall have received the following, each dated the date
of the initial Loan or as of an earlier date acceptable to the Agent, in form
and substance satisfactory to the Agent and its counsel:

                  (i) the Notes, each duly executed by the Borrower;

                  (ii) each Blocked Account Agreement, duly executed by the
            Borrower and the Blocked Account Bank party thereto;

                  (iii) acknowledgment copies of Uniform Commercial Code
            financing statements (naming the Agent as secured party and the
            Borrower as debtor) and duly authorized release or termination
            statements, duly filed in all jurisdictions that the Agent deems
            necessary or desirable to perfect and protect the Liens created
            hereunder;

                  (iv) completed requests for information, dated on or before
            the date of the initial Loan, listing all effective financing
            statements filed in the jurisdictions referred to in clause (iii)
            above and in all other jurisdictions that the Agent deems necessary
            or desirable to confirm the priority of the Liens created hereunder,
            that name the Borrower as debtor, together with copies of such
            financing statements;

                  (v) a completed perfection certificate, substantially in the
            form of Exhibit I, signed by a Responsible Officer of the Borrower;

                  (vi) an initial Borrowing Base Certificate, duly executed by a
            Responsible Officer;

                  (vii) (A) unaudited Financial Statements of the Borrower for
            the nine-month period ended September 30, 2005, certified by a
            Responsible Officer, and (B) a certificate executed by a Responsible
            Officer certifying that, from September 30, 2005 until the Closing
            Date, no change, event, occurrence or development or event involving
            a prospective change in the business, prospects, operations, results
            of operations, assets, liabilities or condition (financial or
            otherwise) of the Borrower has occurred which has had or could
            reasonably be expected to have a Material Adverse Effect, and that
            all information provided by or on behalf of the Borrower to the
            Agent hereunder or in connection herewith is true and correct in all
            material respects;

                  (viii) an opinion of counsel for the Borrower covering such
            matters incident to the transactions contemplated by this Agreement
            as the Agent may

                                      -36-

<PAGE>

            reasonably require, which such counsel is hereby requested by the
            Borrower to provide;

                  (ix) certified copies of all policies of insurance required by
            this Agreement and the other Loan Documents, together with loss
            payee endorsements for all such policies naming the Agent as lender
            loss payee and an additional insured;

                  (x) copies of the Governing Documents of the Borrower and a
            copy of the resolutions of the Board of Directors (or similar
            evidence of authorization) of the Borrower authorizing the
            execution, delivery and performance of this Agreement, the other
            Loan Documents to which the Borrower is or is to be a party, and the
            transactions contemplated hereby and thereby, attached to which is a
            certificate of the Secretary or an Assistant Secretary of the
            Borrower certifying (A) that such copies of the Governing Documents
            and resolutions (or similar evidence of authorization) relating to
            the Borrower are true, complete and accurate copies thereof, have
            not been amended or modified since the date of such certificate and
            are in full force and effect and (B) the incumbency, names and true
            signatures of the officers of the Borrower authorized to sign the
            Loan Documents to which it is a party;

                  (xi) a certified copy of a certificate of the Secretary of
            State of the state of incorporation of the Borrower, dated within
            fifteen days of the Closing Date, listing the certificate of
            incorporation of the Borrower and each amendment thereto on file in
            such official's office and certifying that (A) such amendments are
            the only amendments to such certificate of incorporation on file in
            that office, (B) the Borrower has paid all franchise taxes to the
            date of such certificate and (C) the Borrower is in good standing in
            that jurisdiction;

                  (xii) a good standing certificate from the Secretary of State
            of each state in which the Borrower is qualified as a foreign
            corporation, each dated within fifteen days of the Closing Date;

                  (xiii) a Collateral Access Agreement for each parcel of
            Property specified in Schedule 6.1(b) and with respect to any
            Collateral in the possession of any Person other than the Borrower
            (in each case other than with respect to which the Agent has
            established a reserve as provided in the definition of "Eligible
            Inventory"), duly executed by each Person in possession of such
            Collateral or with a Lien on or other interest in such parcel of
            Property;

                  (xiv) the Fee Letter, duly executed by the Borrower;

                  (xv) the repayment in full of all loans and other obligations
            outstanding under the Original Loan Agreement, which repayment may
            be from the proceeds of the initial Revolving Credit Loans made
            hereunder or the IPO;

                  (xvi) the Business Plan;

                                      -37-

<PAGE>

                  (xvii) evidence satisfactory to the Agent that the IPO has
            been consummated substantially in accordance with the Registration
            Statement and that the net proceeds of the IPO have been used in a
            manner described in the Registration Statement, to repay the
            Borrower's obligations under the Original Loan Agreement and the
            internal revenue bonds issued by the Borrower and to redeem the
            Borrower's preferred stock (and the Agent and the Lenders agree
            that, notwithstanding any covenants herein, the use of such net
            proceeds of the IPO in accordance with the Registration Statement
            shall not constitute a violation hereof or Event of Default
            hereunder); and

                  (xviii) such other agreements, instruments, documents and
            evidence as the Agent deems necessary in its reasonable discretion
            in connection with the transactions contemplated hereby.

            (b) There shall be no pending or, to the knowledge of the Borrower,
threatened litigation, proceeding, inquiry or other action (i) seeking an
injunction or other restraining order, damages or other relief with respect to
the transactions contemplated by this Agreement or the other Loan Documents or
(ii) which affects or could affect the business, operations, assets, liabilities
or condition (financial or otherwise) of the Borrower, except, in the case of
clause (ii), where such litigation, proceeding, inquiry or other action could
not reasonably be expected to have a Material Adverse Effect.

            (c) The Borrower shall have paid (i) all reasonable legal, audit and
background investigation fees of the Agent in connection with the negotiation,
preparation, execution and delivery of the Loan Documents and (ii) the fees
payable under the Fee Letter and all other fees referred to in this Agreement
that are required to be paid on the Closing Date.

            (d) Except for the filing of the financing and termination
statements under the Code specified in Section 5.1(a)(iii), no consent or
authorization of, filing with or other act by or in respect of any Governmental
Authority or any other Person is required in connection with the execution,
delivery, performance, validity or enforceability of this Agreement, the Notes
or the other Loan Documents or the consummation of the transactions contemplated
hereby or thereby or the continuing operations of the Borrower following the
consummation of such transactions.

            (e) The Agent and its counsel shall have performed (i) a review
reasonably satisfactory to the Agent of all of the material contracts and other
assets (including, without limitation, leases of operating facilities) of the
Borrower, the financial condition of the Borrower, including all of its tax,
litigation, environmental and other potential contingent liabilities, the
corporate and capital structure of the Borrower and the cash management and
management information systems of the Borrower, (ii) a pre-closing audit and
collateral review and (iii) reviews and investigations of such other matters as
the Agent and its counsel reasonably deem appropriate, in each case with results
satisfactory to the Agent.

            (f) The Borrower shall be in compliance with all Requirements of Law
and its material contracts, other than such noncompliance that could not
reasonably be expected to have a Material Adverse Effect.

                                      -38-

<PAGE>

            (g) The Liens in favor of the Agent shall have been duly perfected
and shall constitute first priority Liens, and the Collateral shall be free and
clear of all Liens other than Liens in favor of the Agent and Permitted Liens.

            (h) After giving effect to all Revolving Credit Loans and CapEx
Loans to be made on the Closing Date, the difference between (i) the lesser of
(A) (I) the Borrowing Base plus (II) 80% of the cost of the Equipment financed
with the proceeds of CapEx Loans made on the Closing Date (excluding the cost of
any software, warranties or other intangible assets related thereto) and (B) the
Maximum Amount of the Facility and (ii) the aggregate outstanding amount of such
Loans shall exceed $10,000,000.

            SECTION 5.2 Conditions Precedent to Each Loan. The obligation of the
Lenders to make any Loan is subject to the satisfaction of the following
conditions precedent:

            (a) all representations and warranties contained in this Agreement
(other than under Section 6.1(g) and any representations and warranties that
relate solely to another date, in which case such representations and warranties
shall have been true and correct in all material respects as of such other date)
and the other Loan Documents shall be true and correct in all material respects
on and as of the date of such Loan as if then made;

            (b) no Default or Event of Default shall have occurred and be
continuing or would result from the making of the requested Loan as of the date
of such request; and

            (c) no Material Adverse Effect shall have occurred and be continuing
since the Closing Date.

                                  ARTICLE VI.
                         REPRESENTATIONS AND WARRANTIES

            SECTION 6.1 Representations and Warranties of the Borrower; Reliance
by the Lenders. The Borrower represents and warrants as of the date hereof (or
as of any date hereafter as contemplated in Section 5.2(a) or subsection (j)
hereof) as follows:

            (a) Organization, Good Standing and Qualification. The Borrower (i)
is a corporation duly organized, validly existing and in good standing under the
laws of the state of its organization, (ii) has the corporate power and
authority to own its properties and assets and to transact the businesses in
which it presently is engaged and (iii) is duly qualified, authorized to do
business and in good standing in each jurisdiction where it presently is engaged
in business, except to the extent that the failure to so qualify or be in good
standing could not reasonably be expected to have a Material Adverse Effect.
Schedule 6.1(a) specifies the jurisdiction in which the Borrower is organized
and all jurisdictions in which the Borrower is qualified to do business as a
foreign corporation as of the Closing Date and sets forth the exact correct
legal name of the Borrower as specified in the public record of the State of
Delaware.

            (b) Locations of Offices, Records and Collateral. The address of the
principal place of business and chief executive office of the Borrower is, and
the books and records of the Borrower and all of its chattel paper and records
of Receivables are maintained exclusively in the possession of the Borrower at,
the address of the Borrower specified in Schedule 6.1(b). There is

                                      -39-

<PAGE>

no location at which the Borrower maintains any Collateral other than the
locations specified for it in Schedule 6.1(b). Schedule 6.1(b) specifies all
Property of the Borrower, and indicates whether each location specified therein
is leased or owned by the Borrower.

            (c) Authority. It has the requisite corporate power and authority to
execute, deliver and perform its obligations under each of the Loan Documents to
which it is a party. All corporate action necessary for the execution, delivery
and performance by it of the Loan Documents to which it is a party (including
the consent of shareholders where required) has been taken.

            (d) Enforceability. This Agreement is and, when executed and
delivered, each other Loan Document to which it is a party, will be, the legal,
valid and binding obligation of the Borrower enforceable in accordance with its
terms, except as enforceability may be limited by (i) bankruptcy, insolvency or
similar laws affecting creditors' rights generally and (ii) general principles
of equity.

            (e) No Conflict. The execution, delivery and performance by it of
each Loan Document to which it is a party do not and will not contravene (i) any
of the Governing Documents of the Borrower, (ii) any Requirement of Law or (iii)
any contract of the Borrower listed as an exhibit to the Registration Statement
and will not result in the imposition of any Liens upon any of its properties
except in favor of the Agent.

            (f) Consents and Filings. No consent, authorization or approval of,
or filing with or other act by, any shareholders of the Borrower, any
Governmental Authority or any other Person is required in connection with the
execution, delivery, performance, validity or enforceability of this Agreement
or any other Loan Document, the consummation of the transactions contemplated
hereby or thereby or the continuing operations of the Borrower following such
consummation, except for the filing of financing and termination statements
under the Code.

            (g) Subsidiaries. The capital stock of the Borrower's Subsidiaries
is owned by the Persons and in the amounts specified in Schedule 6.1(g).

            (h) Solvency. It is Solvent and will be Solvent upon the completion
of all transactions contemplated to occur on or before the Closing Date
(including, without limitation, the Loans to be made on the Closing Date).

            (i) Financial Data. It has provided to the Agent complete and
accurate copies of its annual audited Financial Statements for the fiscal year
ended December 31, 2004, and unaudited Financial Statements for the nine-month
period ended September 30, 2005. Such Financial Statements have been prepared in
accordance with GAAP consistently applied throughout the periods involved and
fairly present the financial position, results of operations and cash flows of
the Borrower for each of the periods covered. It has no Contingent Obligation or
liability for taxes, unrealized losses, unusual forward or long-term commitments
or long-term leases, which is not reflected in such Financial Statements or the
footnotes thereto. During the period from September 30, 2005 to and including
the date hereof, there has been no sale, transfer or other disposition by the
Borrower of any material part of its business or property and no

                                      -40-

<PAGE>

purchase or other acquisition of any business or property (including any capital
stock of any other Person) material in relation to the financial condition of
the Borrower at September 30, 2005. Since September 30, 2005, (i) there has been
no change, occurrence, development or event which has had or could reasonably be
expected to have a Material Adverse Effect and (ii) none of the capital stock of
the Borrower has been redeemed, retired, purchased or otherwise acquired for
value by the Borrower except as specified in the Registration Statement.

            (j) Accuracy and Completeness of Information. All data, reports and
information (other than preliminary or draft data, reports or information)
heretofore, contemporaneously or hereafter furnished by or on behalf of the
Borrower in writing to the Agent or the Auditors for purposes of or in
connection with this Agreement or any other Loan Document, or any transaction
contemplated hereby or thereby, are or will be true and accurate in all material
respects on the date as of which such data, reports and information are dated or
certified and not incomplete by omitting to state any material fact necessary to
make such data, reports and information not misleading at such time. There are
no facts now known to any Responsible Officer of the Borrower which individually
or in the aggregate could reasonably be expected to have a Material Adverse
Effect and which have not been specified herein, in the Financial Statements, or
in any certificate, opinion or other written statement previously furnished by
the Borrower to the Agent.

            (k) No Joint Ventures or Partnerships. It is not engaged in any
joint venture or partnership with any other Person except that Castings LLC is
engaged in the joint venture specified in Schedule 6.1(g).

            (l) Corporate and Trade Name. During the past five years, the
Borrower has not been known by or used any other corporate trade or fictitious
name except for its name as set forth in the introductory paragraph and on the
signature page of this Agreement, which is the exact correct legal name of the
Borrower.

            (m) No Actual or Pending Material Modification of Business. Except
as specified in the Registration Statement, there exists no actual or, to the
best of the Borrower's knowledge after due inquiry, threatened termination,
cancellation or limitation of, or any modification or change in, the business
relationship of the Borrower with any customer or group of customers which
individually or in the aggregate could reasonably be expected to have a Material
Adverse Effect.

            (n) Investment Company. It is not an "investment company," or an
"affiliated person" of, or "promoter" or "principal underwriter" for, an
"investment company," as such terms are defined in the Investment Company Act of
1940, as amended. Neither the making of any Loans or the application of the
proceeds or repayment thereof by the Borrower, nor the consummation of the other
transactions contemplated by this Agreement or the other Loan Documents, will
violate any provision of such Act or any rule, regulation or order of the
Securities and Exchange Commission thereunder.

            (o) Margin Stock. It does not own any "margin stock" as that term is
defined in Regulation U of the Federal Reserve Board.

                                      -41-

<PAGE>

            (p) Taxes and Tax Returns. Except as specified in Schedule 6.1(p),

                  (i) it has properly completed and timely filed all income tax
            returns it is required to file. The information filed is complete
            and accurate in all material respects. All deductions taken in such
            income tax returns are appropriate and in accordance with applicable
            laws and regulations, except deductions that may have been
            disallowed but are being challenged in good faith and for which
            adequate reserves have been established in accordance with GAAP;

                  (ii) all taxes, assessments, fees and other governmental
            charges for periods beginning prior to the date hereof, which
            involve an amount in excess of $1,000,000 in the aggregate, have
            been timely paid (or, if not yet due, adequate reserves therefor
            have been established) by it and the Borrower has no liability for
            taxes in excess of the amounts so paid or reserves so established;

                  (iii) no deficiencies for taxes have been claimed, proposed or
            assessed by any taxing or other Governmental Authority against the
            Borrower and no tax Liens have been filed with respect thereto that
            involve an amount in excess of $1,000,000 in the aggregate. There
            are no pending or threatened audits, investigations or claims for or
            relating to any liability of the Borrower for taxes and there are no
            matters under discussion with any Governmental Authority which could
            result in an additional liability for taxes, which involve taxes in
            excess of $1,000,000 in the aggregate. The federal income tax
            returns of the Borrower have never been audited by the Internal
            Revenue Service. No extension of a statute of limitations relating
            to taxes, assessments, fees or other governmental charges is in
            effect with respect to the Borrower; and

                  (iv) it is not a party to, and has no obligations under, any
            written tax sharing agreement or agreement regarding payments in
            lieu of taxes.

            (q) No Judgments or Litigation. No judgments, orders, writs or
decrees are outstanding against it, nor is there now pending or, to its
knowledge, threatened litigation, contested claim, investigation, arbitration,
or governmental proceeding by or against the Borrower that (i) individually or
in the aggregate could reasonably be expected to have a Material Adverse Effect
or (ii) purports to affect the legality, validity or enforceability of this
Agreement, the Notes, any other Loan Document or the consummation of the
transactions contemplated hereby or thereby.

            (r) Title to Property. It has (i) good and marketable fee simple
title to or valid leasehold interests in all of its Property and (ii) good and
marketable title to all of its other property, in each case free and clear of
Liens other than (A) Liens in favor of the Agent, (B) Permitted Liens and (C)
Liens securing Indebtedness reflected in the Financial Statements delivered
under Section 5.1(a)(vii).

            (s) No Other Indebtedness. On the Closing Date and after giving
effect to the transactions contemplated hereby, it has no Indebtedness other
than Indebtedness reflected in the

                                      -42-

<PAGE>

Financial Statements delivered under Section 5.1(a)(vii) to the extent required
by GAAP to be included therein or in footnotes thereto.

            (t) Compliance with Laws. On the Closing Date, after giving effect
to the transactions contemplated hereby, it is not in default under any term of
any Requirement of Law other than any default which, when taken together with
all other similar defaults, could not reasonably be expected to have a Material
Adverse Effect.

            (u) Rights in Collateral; Priority of Liens. All of the Collateral
      of the Borrower is owned or leased by it free and clear of any and all
      Liens in favor of third parties, other than Liens in favor of the Agent
      and Permitted Liens. Upon the proper filing of the financing and
      termination statements specified in Section 5.1(a)(iii), the Liens granted
      by the Borrower under this Agreement constitute valid, enforceable and
      perfected first priority Liens on the Collateral.

            (v) ERISA.

                  (i) Each of the Borrower and its ERISA Affiliates has
            fulfilled its respective contribution obligations under the minimum
            funding standards of Section 302 of ERISA and Section 412 of the
            Internal Revenue Code with respect to each Pension Plan, and no
            application for a waiver of such minimum funding standards is
            currently outstanding with respect to any Pension Plan.

                  (ii) No Termination Event has occurred which could reasonably
            be expected to have a Material Adverse Effect. Neither it nor any
            ERISA Affiliate has incurred any liability to the PBGC or any
            Pension Plan or Multiemployer Plan, except for ordinary funding
            obligations and the payment of PBGC premiums which are not past due,
            and except for any such liability which could not reasonably be
            expected to have a Material Adverse Effect.

                  (iii) Neither it nor any ERISA Affiliate is required to or
            reasonably expects to be required to provide security to any Pension
            Plan under Section 307 of ERISA or Section 401(a)(29) of the
            Internal Revenue Code.

                  (iv) Each of the Borrower and its Subsidiaries is in
            compliance in all respects with all applicable provisions of ERISA
            and the Internal Revenue Code with respect to the Plans, and no
            Person has engaged in a Prohibited Transaction with respect to any
            Plan, except for any such noncompliance or Prohibited Transaction
            which, individually or in the aggregate, could not reasonably be
            expected to have a Material Adverse Effect.

            (w) Labor Matters. There are no existing or, to the Borrower's
knowledge, threatened strikes, lockouts or other disputes relating to any
collective bargaining or similar agreement to which the Borrower is a party
which, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

            (x) Compliance with Environmental Laws. (i) It is not the subject of
any judicial or administrative proceeding or investigation relating to the
violation of any

                                      -43-

<PAGE>

Environmental Law or asserting potential liability arising from the release or
disposal by any Person of any Hazardous Materials, (ii) it has not received from
any Governmental Authority or other Person any notice, order, stipulation or
directive under any Environmental Law, nor is it aware of any pending
discussions within any Governmental Authority, concerning the treatment,
storage, disposal, spill or release or threatened release of any Hazardous
Materials at, on, beneath or adjacent to Property owned or leased by it, or the
release or threatened release at any other location of any Hazardous Material
generated, used, stored, treated, transported or released by or on behalf of the
Borrower, (iii) during the period that Affiliates of Carl C. Icahn have
controlled the Borrower, it has disposed of all its waste in accordance with all
applicable laws and it has not improperly stored or disposed of any waste at,
on, beneath or adjacent to any of its Property, (iv) it has no knowledge of any
actual or potential liability for any release of any Hazardous Materials, and
there has been no spill or release of any Hazardous Materials at any of its
Property in violation of Environmental Laws, (v) all of its Property (including,
without limitation, its Equipment) is free, and has at all times been free, of
Hazardous Materials, except as such materials may be part of such Equipment, and
underground storage tanks and (vi) to the knowledge of the Borrower, none of its
Property has ever been used as a waste disposal site, whether registered or
unregistered, where any of the foregoing could reasonably be expected to have a
Material Adverse Effect.

            (y) Licenses and Permits. It has obtained and holds in full force
and effect all franchises, licenses, leases, permits, certificates,
authorizations, qualifications, easements, rights of way and other rights and
approvals which are necessary or advisable for the operation of its business as
presently conducted and as proposed to be conducted, except where the failure to
possess any of the foregoing (individually or in the aggregate) could not
reasonably be expected to have a Material Adverse Effect.

            (z) Government Regulation. It is not subject to regulation under the
Public Utility Holding Company Act of 1935, the Federal Power Act, the
Interstate Commerce Act or any other Requirement of Law that limits its ability
to incur Indebtedness or to consummate the transactions contemplated by this
Agreement and the other Loan Documents.

            (aa) Business and Properties. No business of the Borrower is
affected by any fire, explosion, accident, drought, storm, hail, earthquake,
embargo, act of God or of the public enemy or other casualty (whether or not
covered by insurance) that could reasonably be expected to have a Material
Adverse Effect.

            (bb) Business Plan. The Business Plan delivered to the Agent on the
Closing Date and in accordance with Section 7.1(k)(ii) were prepared in good
faith on the basis of assumptions which were fair in the context of the
conditions existing at the time of delivery thereof, and represented, at the
time of delivery, the Borrower's best estimate of its future financial
performance.

            (cc) Affiliate Transactions. The Borrower is not a party to or bound
by any agreement or arrangement (whether oral or written) relating to any of the
Collateral to which any Affiliate of the Borrower is a party except (i) in the
ordinary course of and pursuant to the reasonable requirements of the business
of the Borrower and (ii) upon fair and reasonable terms

                                      -44-

<PAGE>

no less favorable to the Borrower than it could obtain in a comparable
arm's-length transaction with an unaffiliated Person except as specified in the
Registration Statement.

            (dd) Compliance with Anti-Terrorism Laws. The Borrower is and will
remain in full compliance with all laws and regulations applicable to it
including, without limitation, (i) ensuring that no Person who owns a
controlling interest in or otherwise controls the Borrower is or shall be (A)
listed on the Specially Designated Nationals and Blocked Person List maintained
by the Office of Foreign Assets Control ("OFAC"), Department of the Treasury, or
any other similar list maintained by the OFAC under any authorizing statute,
Executive Order or regulation or (B) a Person designated under Section 1(b), (c)
or (d) of Executive Order No. 13224 (September 23, 2001), any related enabling
legislation or any similar Executive Order and (ii) compliance with all
applicable Bank Secrecy Act ("BSA") laws, regulations and government guidance on
BSA compliance and on the prevention and detection of money laundering
violations. The Borrower acknowledges that each of the Agent and the Lenders
have notified the Borrower that the Agent and the Lenders are required, under
the USA Patriot Act, 31 U.S.C. Section 5318 (the "Patriot Act"), to obtain,
verify and record information that identifies the Borrower including, without
limitation, the name and address of the Borrower and such other information that
will allow the Agent and the Lenders to identify the Borrower in accordance with
the Patriot Act.

All representations and warranties made by the Borrower in this Agreement and in
each other Loan Document to which it is a party shall survive the execution and
delivery hereof and thereof and the closing of the transactions contemplated
hereby and thereby. The Borrower acknowledges and confirms that the Lenders are
relying on such representations and warranties without independent inquiry in
entering into this Agreement.

                                  ARTICLE VII.
                            COVENANTS OF THE BORROWER

            SECTION 7.1 Affirmative Covenants. Until termination of the
Commitments and payment and satisfaction of all Obligations in full:

            (a) Corporate Existence. The Borrower shall (i) maintain its
corporate existence, (ii) maintain in full force and effect all material
licenses, bonds, franchises, leases, trademarks, qualifications and
authorizations to do business, and all material patents, contracts and other
rights necessary or advisable to the profitable conduct of its businesses, and
(iii) continue in the same lines of business as presently conducted by it.

            (b) Maintenance of Property. The Borrower shall keep all property
useful and necessary to its business in good working order and condition
(ordinary wear and tear excepted) in accordance with its past operating
practices except to the extent that the failure to do so would not cause a
Material Adverse Effect.

            (c) Environmental Matters. The Borrower shall, and shall cause each
of its Subsidiaries to, conduct its business so as to comply in all material
respects with all applicable Environmental Laws including, without limitation,
compliance in all material respects with the terms and conditions of all permits
and governmental authorizations, provided that the Borrower

                                      -45-

<PAGE>

shall not be deemed in violation hereof if the Borrower's or any such
Subsidiary's failure to comply with any of the foregoing could not reasonably be
expected to have a Material Adverse Effect.

            (d) Taxes. The Borrower shall pay, when due, (i) all tax
assessments, and other governmental charges and levies imposed against it or any
of its property and (ii) all lawful claims that, if unpaid, might by law become
a Lien upon its property; provided, however, that, unless such tax assessment,
charge, levy or claim has become a Lien on any of the property of the Borrower
in excess of $1,000,000 in the aggregate for all such assessments, charges,
levies and claims, it need not be paid if it is being contested in good faith,
by appropriate proceedings diligently conducted and an adequate reserve or other
appropriate provision shall have been established therefor as required in
accordance with GAAP.

            (e) Requirements of Law. The Borrower shall comply with all
Requirements of Law applicable to it, including, without limitation, all
applicable federal, state, local or foreign laws and regulations, including,
without limitation, those relating to environmental and employee matters
(including the collection, payment and deposit of employees' income,
unemployment, Social Security and Medicare hospital insurance taxes) and with
respect to pension liabilities, provided that the Borrower shall not be deemed
in violation hereof if the Borrower's failure to comply with any of the
foregoing could not reasonably be expected to have a Material Adverse Effect.

            (f) Insurance. The Borrower shall maintain public liability
insurance, business interruption insurance, third party property damage
insurance and replacement value insurance on its assets (including the
Collateral) under such policies of insurance, with such insurance companies, in
such amounts and covering such risks as are in effect (and copies of which have
been provided to the Agent) immediately before the Closing Date or as
subsequently take effect which contain terms customary in the industry and are
issued by insurance companies reasonably satisfactory to the Agent, all of which
policies covering the Collateral shall name the Agent as an additional insured
and the lender loss payee in case of loss, and contain other provisions as the
Agent may require to protect fully the Agent's interest in the Collateral and
any payments to be made under such policies.

            (g) Books and Records; Inspections. The Borrower shall (i) maintain
books and records (including computer records and programs) of account
pertaining to the assets, liabilities and financial transactions of the Borrower
in such detail, form and scope as is consistent with good business practice and
(ii) provide the Agent and its agents and one representative of each of the
Lenders access to the premises of the Borrower at any time and from time to
time, during normal business hours and upon reasonable notice under the
circumstances, and at any time after the occurrence and during the continuance
of a Default or Event of Default, for the purposes of (A) inspecting and
verifying the Collateral, (B) inspecting and copying (at the Borrower's expense)
any and all records pertaining thereto, and (C) discussing the affairs, finances
and business of the Borrower with any officer, employee or director thereof or
with the Auditors, all of whom are hereby authorized to disclose to the Agent
and the Lenders all financial statements, work papers, and other information
relating to such affairs, finances or business. The Borrower shall reimburse the
Agent for the reasonable travel and related expenses of the Agent's employees
(unless the Agent has employed outside

                                      -46-

<PAGE>

accountants for the purposes specified in this sentence) or, at the Agent's
option, of such outside accountants retained by the Agent to verify or inspect
Collateral and the records or documents related thereto (I) up to three times in
any twelve-month period (and more frequently in the Agent's discretion at any
time that an Event of Default has occurred and is continuing) or (II) in
connection with the inspection of any Inventory acquired from another Person
other than in the ordinary course of business if the value thereof is greater
than $5,000,000. If the Agent's own employees are used, the Borrower shall also
pay a per diem allowance of $750 plus the Agent's related costs and expenses,
or, if outside accountants are used, the Borrower shall also pay the Agent such
sum as may be required to reimburse the Agent for the expense thereof. All such
Obligations may be charged to the Loan Account or any other account of the
Borrower with the Agent or any of its Affiliates. The Borrower hereby authorizes
the Agent to communicate directly with the Auditors to disclose to the Agent any
and all financial information regarding the Borrower including, without
limitation, matters relating to any audit and copies of any letters, memoranda
or other correspondence related to the business, financial condition or other
affairs of the Borrower.

            (h) Notification Requirements. The Borrower shall timely give the
Agent the following notices and other documents:

                  (i) Notice of Defaults. Promptly, and in any event within two
            Business Days after becoming aware of the occurrence of a Default or
            Event of Default, a certificate of a Responsible Officer specifying
            the nature thereof and the Borrower's proposed response thereto,
            each in reasonable detail.

                  (ii) Proceedings or Changes. Promptly, and in any event within
ten Business Days after the Borrower becomes aware of (A) any proceeding
including, without limitation, any proceeding the subject of which is based in
whole or in part on a commercial tort claim being instituted or threatened to be
instituted by or against the Borrower in any federal, state, local or foreign
court or before any commission or other regulatory body (federal, state, local
or foreign) involving a sum, together with the sum involved in all other similar
proceedings, in a stated amount in excess of $1,000,000 in the aggregate, (B)
any order, judgment or decree involving a sum, together with the sum of all
other orders, judgments or decrees, in excess of $1,000,000 in the aggregate
being entered against the Borrower or any of its property or assets, (C) any
written notice or correspondence issued to the Borrower by a Governmental
Authority warning, threatening or advising of the commencement of any
investigation involving the Borrower or any of its property or assets, (D) any
actual or prospective change, development or event which has had or could
reasonably be expected to have a Material Adverse Effect, (E) a change in the
location of any Collateral from the locations specified in Schedule 6.1(b) or
(F) a proposed or actual change of the name, identity, mailing address, chief
executive office, principal place of business, corporate structure (such as the
formation of Subsidiaries or changes in the ownership thereof) or jurisdiction
of organization of the Borrower, a written statement describing such proceeding,
order, judgment, decree, change, development or event and any action being taken
by the Borrower with respect thereto.

                                      -47-

<PAGE>

                  (iii) ERISA Notices.

                        (A) Promptly, and in any event within ten Business Days
                  after the occurrence thereof, notice of any of the following
                  events which, individually or in the aggregate, could
                  reasonably be expected to have a Material Adverse Effect,
                  including with such notice a written statement of a
                  Responsible Officer describing the event and any action that
                  is being taken with respect thereto by the Borrower or ERISA
                  Affiliate, and any action taken or threatened by the Internal
                  Revenue Service, the Department of Labor or the PBGC;

                              (1) a Termination Event;

                              (2) the failure to satisfy the minimum funding
                        standards of Section 302 of ERISA or Section 412 of the
                        Internal Revenue Code with respect to any Pension Plan
                        or the filing or a waiver request with the Internal
                        Revenue Service with respect to such minimum funding
                        standards for any Pension Plan;

                              (3) the occurrence of a Prohibited Transaction
                        with respect to a Plan;

                              (4) a failure by the Borrower or ERISA Affiliate
                        to make a payment to a Pension Plan required to avoid
                        imposition of a Lien under Section 302(f) of ERISA or
                        Section 412(n) of the Internal Revenue Code;

                              (5) the adoption of an amendment to a Pension Plan
                        requiring the provision of security to such Pension Plan
                        pursuant to Section 307 of ERISA or Section 401(a)(29)
                        of the Internal Revenue Code;

                              (6) receipt by the Borrower or any Subsidiary of
                        notice from the Department of Labor of any penalty with
                        respect to a Plan;

                              (7) receipt by the Borrower or any Subsidiary of
                        notice from the Internal Revenue Service or the Treasury
                        Department of any income tax deficiency or delinquency
                        or excise tax penalty with respect to a Plan; and

                              (8) receipt by the Borrower or any Subsidiary of
                        notice of the entry of a judgment, award or settlement
                        agreement with respect to a Plan; and

                        (B) Promptly upon the request of the Agent, each annual
                  report (IRS Form 5500 series) and all accompanying schedules,
                  the most recent

                                      -48-

<PAGE>

                  actuarial reports, the most recent financial information
                  concerning the financial status of each Pension Plan.

                  (iv) Environmental Matters. Promptly, and in any event within
            ten days after receipt by the Borrower thereof, copies of each (A)
            written notice that any violation of any Environmental Law may have
            been committed or is about to be committed by the Borrower which
            violation could reasonably be expected to result in liability or
            involve remediation costs, which liability or remediation costs
            could reasonably be expected to have a Material Adverse Effect, (B)
            written notice that any administrative or judicial complaint or
            order has been filed or is about to be filed against the Borrower
            alleging violations of any Environmental Law or requiring the
            Borrower to take any action in connection with the release of toxic
            or Hazardous Materials into the environment which violation or
            action could reasonably be expected to result in liability or
            involve remediation costs, which liability or remediation costs
            could reasonably be expected to have a Material Adverse Effect, (C)
            written notice from a Governmental Authority or other Person
            alleging that the Borrower may be liable or responsible for costs
            associated with a response to or cleanup of a release of a Hazardous
            Material into the environment or any damages caused thereby which
            costs or damages could reasonably be expected to have a Material
            Adverse Effect, or (D) Environmental Law adopted, enacted or issued
            after the date hereof of which the Borrower becomes aware which
            could reasonably be expected to have a Material Adverse Effect.

            (i) Casualty Loss. The Borrower shall (i) provide written notice to
the Agent, within ten Business Days, of any material damage to, the destruction
of or any other material loss to any of the Borrower's Inventory or any other
asset or property owned or used by the Borrower to manufacture, repair or store
any item of Collateral other than any such asset or property with a net book
value (individually or in the aggregate) less than $5,000,000 or any
condemnation, confiscation or other taking, in whole or in part, or any event
that otherwise diminishes so as to render impracticable or unreasonable the use
of such asset or property owned or used by the Borrower together with a
statement of the amount of the damage, destruction, loss or diminution in value
(a "Casualty Loss") and (ii) diligently file and prosecute its claim for any
award or payment in connection with a Casualty Loss.

            (j) Qualify to Transact Business. The Borrower shall, and shall
cause each of its Subsidiaries to, qualify to transact business as a foreign
corporation, limited partnership or limited liability company, as the case may
be, in each jurisdiction where the nature or extent of its business or the
ownership of its property requires it to be so qualified or authorized and where
failure to qualify or be authorized could reasonably be expected to have a
Material Adverse Effect.

            (k) Financial Reporting. The Borrower shall deliver to the Agent the
following:

                  (i) Annual Financial Statements. As soon as available, but not
            later than ninety days after the end of each fiscal year, beginning
            with the fiscal year ended December 31, 2005, (A) the Borrower'
            annual audited and certified

                                      -49-

<PAGE>

            consolidated and consolidating Financial Statements; (B) a
            comparison in reasonable detail to the prior year's audited
            Financial Statements; and (C) if available, the Auditors' opinion
            without Qualification, a "Management Letter" and a statement
            indicating that the Auditors have not obtained knowledge of the
            existence of any Default or Event of Default during their audit.

                  (ii) Projections. Not later than sixty days after the end of
            each fiscal year of the Borrower, the Business Plan of the Borrower
            certified by the Chief Financial Officer of the Borrower for the
            one-year period commencing with the following fiscal year.

                  (iii) Quarterly Financial Statements and Compliance
            Certificate. As soon as available, but not later than forty-five
            days after the end of each fiscal quarter, beginning with the fiscal
            quarter ending December 31, 2005, (A) the Borrower's interim
            consolidated and consolidating Financial Statements as of the end of
            such quarter and for the fiscal year to date and (B) a compliance
            certificate, substantially in the form of Exhibit D (a "Compliance
            Certificate"), signed by the Borrower's Chief Financial Officer,
            with an attached schedule of calculations demonstrating compliance
            with the Financial Covenants as of the end of such quarter.

                  (iv) Borrowing Base Certificate. Monthly, not later than the
            fifth Business Day of each month, a borrowing base certificate,
            substantially in the form of Exhibit H, detailing the Eligible
            Receivables and the Eligible Inventory, containing a calculation of
            availability and reflecting all sales, collections, and debit and
            credit adjustments, as of the last day of (or for) the preceding
            month, which shall be prepared by or under the supervision of the
            Chief Financial Officer of the Borrower and certified by such
            officer (a "Borrowing Base Certificate"), provided that, after the
            occurrence and during the continuance of an Availability Event, the
            Agent may require Borrowing Base Certificates to be delivered as
            frequently as it determines is necessary or desirable in its sole
            discretion.

                  (v) Agings. Monthly, not later than the fifth Business Day of
            each month, agings of the Borrower' Receivables and accounts
            payable, in scope and detail satisfactory to the Agent, as of the
            last day of the preceding month.

                  (vi) Inventory Reports. (A) Monthly, not later than the fifth
            Business Day of each month, a report of the Borrower's Inventory,
            based upon a perpetual inventory, describing such Inventory by
            category, item (in reasonable detail), location and current
            appraised value (at the lower of cost or market).

                        (B) Within 120 days after the end of each fiscal year, a
                  report of the annual physical Inventory of the Borrower as
                  observed and tested by its public accountants in accordance
                  with GAAP.

                  (vii) Shareholder and SEC Reports. As soon as available, but
            not later than five days after the same are sent or filed, as the
            case may be, copies of all

                                      -50-

<PAGE>

            financial statements and reports that the Borrower sends to the
            shareholders of the Borrower or files publicly with the Securities
            and Exchange Commission.

                  (viii) Other Financial Information. Promptly after the request
            by the Agent therefor, such additional financial statements and
            other related data and information as to the business, prospects,
            operations, results of operations, assets, liabilities or condition
            (financial or otherwise) of the Borrower as the Agent may from time
            to time reasonably request. Any Lender may request that the Agent
            reasonably request any such additional information from the Borrower
            on behalf of such Lender, and the Agent agrees to make any such
            request as soon as reasonably practicable.

            (l) Payment of Liabilities. The Borrower shall pay and discharge, in
the ordinary course of business, all obligations and liabilities (including,
without limitation, tax liabilities and other governmental charges), except
where the same may be contested in good faith by appropriate proceedings and for
which adequate reserves with respect thereto have been established in accordance
with GAAP.

            SECTION 7.2 Negative Covenants. Until termination of the Commitments
and payment and satisfaction of all Obligations in full:

            (a) Deposit Accounts. The Borrower will not establish or maintain
any deposit account in which proceeds of Collateral are on deposit unless the
Agent shall have received a Blocked Account Agreement, duly executed by the
Borrower and the applicable depository bank, covering such deposit account other
than deposit accounts in which the Borrower maintains a balance of no more than
$50,000 at any time.

            (b) Use of Proceeds. The Borrower will not (i) use any portion of
the proceeds of any Loan in violation of Section 2.4 or for the purpose of
purchasing or carrying any "margin stock" (as defined in Regulation U of the
Federal Reserve Board) in any manner which violates the provisions of Regulation
T, U or X of the Federal Reserve Board or for any other purpose in violation of
any applicable statute or regulation, or of the terms and conditions of this
Agreement, or (ii) take, or permit any Person acting on its behalf to take, any
action which could reasonably be expected to cause this Agreement or any other
Loan Document to violate any regulation of the Federal Reserve Board.

            (c) Cancellation of Debt. The Borrower will not cancel any liability
or debt owed to it in respect of any item of Collateral other than for
consideration in the ordinary course of business and liabilities or debts
involving an outstanding amount less than or equal to $50,000.

            (d) Investments. Other than as governed by Section 9.2(c)(I), the
Borrower will not, directly or indirectly, at any time use any funds included in
the Collateral to make or hold any Investment in any Person (whether in cash,
securities or other property of any kind) other than (i) Investments in Cash
Equivalents, (ii) so long as no Blocked Account Notice is in effect and no Event
of Default is continuing, Investments in Affiliates of the Borrower and (iii)
other Investments in an amount less than or equal to $50,000.

                                      -51-

<PAGE>

            (e) Fiscal Year. The Borrower will not change its fiscal year from a
year ending December 31.

            (f) Accounting Changes. The Borrower will not at any time make or
permit any change in accounting policies or reporting practices, except as
required or allowed by GAAP.

                                 ARTICLE VIII.
                               FINANCIAL COVENANTS

            Until termination of the Commitments and the payment and
satisfaction of all Obligations in full:

            SECTION 8.1 Fixed Charge Coverage Ratio. The Fixed Charge Coverage
Ratio for the period beginning January 1, 2005 and ending December 31, 2005 and
each twelve-month period ending on the last day of each calendar quarter
thereafter shall not be less than 1.2 to 1.0.

            SECTION 8.2 Leverage Ratio. The ratio of (a) the outstanding amount
of all the Borrower's Indebtedness to (b) EBITDA, determined for the period
beginning January 1, 2005 and ending December 31, 2005 and each twelve-month
period ending on the last day of each calendar quarter thereafter, shall not be
greater than 4.0 to 1.0.

            SECTION 8.3 Business Plan. The Agent and the Borrower acknowledge
that the foregoing financial covenants were established by the Agent and the
Borrower on the basis of, among other things, the Business Plan, after leaving a
margin in favor of the Borrower which the Agent and the Borrower have agreed was
fair as of the date hereof and is fair on the date thereof. Accordingly, the
Agent and the Borrower have agreed that any failure by the Borrower to comply
with the terms of any Financial Covenant shall be deemed material for purposes
of this Agreement.

                                  ARTICLE IX.
                                EVENTS OF DEFAULT

            SECTION 9.1 Events of Default. The occurrence of any of the
following events shall constitute an "Event of Default":

            (a) the Borrower shall fail to pay (i) any principal, interest, or
unused line fees when payable, whether at stated maturity, by acceleration, or
otherwise, or (ii) any other Obligations within fifteen Business Days of demand
therefor; or

            (b) the Borrower shall (i) default in the performance or observance
of any agreement, covenant, condition, provision or term contained in Section
2.4, 2.5, 2.7, 7.1(a)(i), 7.1(f), 7.1(g)(ii), 7.1(h), 7.1(k), 7.2, 8.1, 8.2,
11.4 or 11.7(a) hereof; or (ii) default in the performance or observance of any
agreement, covenant, condition, provision or term contained in this Agreement or
any other Loan Document (other than those referred to in Sections 9.1(a) and
(b)(i)) and such failure continues for a period of thirty days from the earlier
of the date on which (A) the Borrower has received notice of such failure in
accordance with Section 11.1 and

                                      -52-

<PAGE>

(B) a Responsible Officer of the Borrower has knowledge of such failure or, if
such default is capable of being cured and the Borrower has undertaken to cure
such default within such thirty-day period and is diligently prosecuting and
pursuing such cure thereafter, such failure continues for a period of sixty days
from such date of initial notice or knowledge; or

            (c) the Borrower shall dissolve, wind up or otherwise cease to
conduct its business; or

            (d) the Borrower shall become the subject of an Insolvency Event; or

            (e) (i) the Borrower shall fail to make any payment (whether of
principal, interest or otherwise and regardless of amount) in respect of any
Material Indebtedness when due (whether at scheduled maturity or by required
prepayment, acceleration, demand or otherwise), or (ii) any event or condition
occurs that results in any Material Indebtedness becoming due prior to its
scheduled maturity or that enables or permits the holder or holders (or a
trustee or agent on behalf of such holder or holders) to declare any Material
Indebtedness to be due, or to require the prepayment, repurchase, redemption or
defeasance thereof, prior to its scheduled maturity; or

            (f) any representation or warranty made by the Borrower under or in
connection with any Loan Document or amendment or waiver thereof, or in any
Financial Statement, report or certificate delivered in connection therewith,
shall prove to have been incorrect in any material respect when made or deemed
made; or

            (g) any judgment or order for the payment of money which, when taken
together with all other judgments and orders rendered against the Borrower,
exceeds $1,000,000 in the aggregate shall be rendered against the Borrower and
shall not be stayed, vacated, bonded or discharged within thirty days; or

            (h) any of the events specified in clauses (1) through (8) of
Section 7.1(h)(iii)(A) shall occur and such event, together with any other of
such events, individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect; or

            (i) any covenant, agreement or obligation of the Borrower contained
in or evidenced by any of the Loan Documents shall cease to be enforceable in
any material respect, or shall be determined to be unenforceable in any material
respect, in accordance with its terms; the Borrower shall deny or disaffirm its
obligations under any of the Loan Documents or any Liens granted in connection
therewith or shall otherwise challenge any of its obligations under any of the
Loan Documents; or any Liens granted on any of the Collateral shall be
determined to be void, voidable or invalid, are subordinated or are not given
the priority contemplated by this Agreement or any other Loan Document; or

            (j) this Agreement shall for any reason cease to create a valid and
perfected first priority Lien on the Collateral purported to be covered thereby;
or

            (k) the independent public accountants for the Borrower shall
deliver a Qualified opinion on any Financial Statement; or

                                      -53-

<PAGE>

            (l) the occurrence of any event or condition that has a Material
Adverse Effect.

            SECTION 9.2 Acceleration, Termination and Demand Rights. During the
continuance of an Event of Default, the Agent may, or upon the request of the
Required Lenders, the Agent shall take any or all of the following actions,
without prejudice to the rights of the Agent to enforce its claims against the
Borrower:

            (a) Acceleration. To declare all Obligations immediately due and
payable (except with respect to any Event of Default with respect to the
Borrower specified in Section 9.1(d), in which case all Obligations shall
automatically become immediately due and payable) without presentment, demand,
protest or any other action or obligation of the agent or any Lender.

            (b) Termination of Commitments. To declare the Commitments
immediately terminated (except with respect to any Event of Default with respect
to the Borrower set forth in Section 9.1(d), in which case the Commitments shall
automatically terminate) and, at all times thereafter, any Loan made by a Lender
or the Agent shall be in such Lender's or the Agent's sole and absolute
discretion and none of the other Lenders shall have any obligation with respect
thereto. Notwithstanding any such termination, until all Obligations shall have
been fully and indefeasibly paid and satisfied, the Agent shall retain all
security in existing and future Receivables included in the Collateral and
existing and future Inventory of the Borrower and all other Collateral held by
it hereunder.

            (c) Demand Rights. Notwithstanding anything herein to the contrary,
the Borrower shall, immediately upon the Borrower's decision to take any of the
following actions (and, in any event, not less than ten days before the taking
of any such action), deliver to the Agent written notice of such proposed action
(together with, in the case of any action specified in clause (A), (F), (H) or
(I) hereof, such financial information as is necessary to determine the
Borrower's compliance, on a pro forma basis giving effect to such action, with
Section 8.1 or 8.2, as the case may be), and, upon the giving of such notice
(or, if such notice is not given for any reason, the occurrence of any such
action), the Agent may, or upon the request of the Required Lenders, the Agent
shall (i) declare all Obligations immediately due and payable without
presentment, demand, protest or any other action or obligation of the Agent or
any Lender or (ii) declare the Commitments immediately terminated and,
notwithstanding any such termination, until all the Obligations shall have been
fully and indefeasibly paid and satisfied, the Agent shall retain all security
in existing and future Collateral:

                  (A) Indebtedness. The Borrower shall, directly or indirectly,
            at any time create, incur, assume or permit to exist any
            Indebtedness that causes the ratio of (1) the aggregate outstanding
            amount of the Borrower's Indebtedness to (2) EBITDA, determined on a
            year-to-date basis (or, if after December 31, 2005, the twelve-month
            period) ending on the last day of the quarter preceding the quarter
            in which such Indebtedness is created, incurred, assumed or
            permitted to exist (which determination shall be made, if before
            December 31, 2005, by annualizing EBITDA in a manner

                                      -54-

<PAGE>

            consistent with the second sentence of Section 8.2), to be greater
            than 4.0 to 1.0.

                  (B) Contingent Obligations. Except as relates to the
            Indebtedness reflected in the Financial Statements delivered under
            Section 5.1(a)(vii), the Borrower shall, directly or indirectly,
            incur, assume, or suffer to exist any Contingent Obligation,
            excluding (1) indemnities given in connection with (x) the
            Indebtedness reflected in the Financial Statements delivered under
            Section 5.1(a)(vii) and (y) this Agreement or the other Loan
            Documents in favor of the Agent and the Lenders, (2) liabilities
            associated with the Borrower's assumption, pursuant to an Interest
            Transfer Agreement and an Assignment and Assumption, Novation and
            Release, each dated as of June 30, 2005, and related documents, of
            certain liabilities, obligations and guaranties of ACF Industries
            Holding Corp. related to Ohio Castings Company, LLC, (3) contingent
            liabilities, if any, of the Borrower associated with or arising out
            of any ACF Industries LLC employment benefit plan and (4) any
            obligations of the Borrower to its current and future retired
            employees that are accrued or incurred after the date hereof,
            provided that the indemnities and obligations specified in clauses
            (2), (3) and (4) above shall not represent an aggregate Liability to
            the Borrower in excess of $20,000,000 at any time.

                  (C) Corporate Changes, Etc. The Borrower shall, directly or
            indirectly, merge or consolidate with any Person or amend, alter or
            modify its Governing Documents in a manner materially adverse to the
            Agent or the Lenders, or liquidate or dissolve itself (or suffer any
            liquidation or dissolution).

                  (D) Change in Nature of Business. The Borrower shall make any
            material adverse change in the nature of its business as carried on
            at the date hereof or enter into any new line of business that is
            materially adverse to the Agent and the Lenders.

                  (E) Sales, Etc. of Assets. The Borrower shall, directly or
            indirectly, in any fiscal year, sell, transfer or otherwise dispose
            of, or grant any option or other right to purchase or otherwise
            acquire, (1) any of the Collateral (other than sales of (I)
            Inventory in the ordinary course of business and (II) Equipment
            financed with the proceeds of CapEx Loans unless the related Net
            Cash Proceeds are applied in accordance with the terms hereof) or
            (2) all or substantially all of its assets.

                  (F) Loans to Other Persons. The Borrower shall make any loan
            or advance any credit to any Affiliate or other Person that causes
            the Fixed Charge Coverage Ratio or the Leverage Ratio, each as
            determined on a year-to-date basis (or, if after December 31, 2005,
            the twelve-month period) ended on the last day of the quarter
            preceding the quarter in which

                                      -55-

<PAGE>

            such loan is made or such credit is advanced, to be less than 1.2 to
            1.0 or greater than 4.0 to 1.0, respectively.

                  (G) Liens, Etc. The Borrower shall incur, assume or suffer to
            exist any Lien on or with respect to any of the Collateral, other
            than:

                        (1) Liens created hereunder;

                        (2) Permitted Liens; and

                        (3) Liens not described in clauses (1) or (2) above if
                  the incurrence, assumption or suffering of any such Lien would
                  have a Material Adverse Effect, result in a default under
                  Section 8.1 or 8.2 on a pro forma basis or otherwise result in
                  a Default or an Event of Default.

                  (H) Dividends, Stock Redemptions, Distributions, Etc. Except
            as described in the Registration Statement with respect to the
            redemption of preferred stock of the Borrower and American Railcar
            Industries, Inc., a Missouri corporation, the Borrower shall
            directly or indirectly, pay any dividends or distributions on,
            purchase, redeem or retire any shares of any class of its capital
            stock or other equity interests or any warrants, options or rights
            to purchase any such capital stock or other equity interests,
            whether now or hereafter outstanding ("Stock"), or make any payment
            on account of or set apart assets for a sinking or other analogous
            fund for, the purchase, redemption, defeasance, retirement or other
            acquisition of its Stock, or make any other distribution in respect
            thereof, either directly or indirectly, whether in cash or property
            or in obligations of the Borrower, in each case that causes the
            Fixed Charge Coverage Ratio or the Leverage Ratio, each as
            determined on a year-to-date basis (or, if after December 31, 2005,
            the twelve-month period) ending on the last day of the quarter
            preceding the quarter in which such payment, purchase, redemption,
            defeasance, retirement, acquisition or distribution is made, to be
            less than 1.2 to 1.0 or greater than 4.0 to 1.0, respectively.

                  (I) Acquisition of Stock or Assets. The Borrower shall acquire
            or commit or agree to acquire any stock, securities or assets of any
            other Person other than acquisitions which, after giving effect
            thereto, would not have a Material Adverse Effect, result in a
            default under Section 8.1 or 8.2 on a pro forma basis or otherwise
            result in a Default or an Event of Default.

The Borrower's failure to repay all the Obligations upon a demand hereunder
shall constitute an Event of Default. Any failure of the Agent to declare the
Obligations immediately due and payable following the delivery of a notice by
the Borrower under clause (A), (F), (H) or (I) hereof shall not be deemed to
waive any Default or Event of Default arising under Section 8.1 or 8.2 as a
result of the action specified in such notice.

                                      -56-

<PAGE>

            SECTION 9.3 Other Remedies.

            (a) During the continuance of an Event of Default, the Agent shall
have all rights and remedies with respect to the Obligations and the Collateral
under applicable law and the Loan Documents, and the Agent may do any or all of
the following:

                  (i) remove for copying all documents, instruments, files and
            records (including the copying of any computer records) relating to
            the Borrower's Receivables or use (at the expense of the Borrower)
            such supplies or space of the Borrower at the Borrower's places of
            business necessary to administer, enforce and collect such
            Receivables including, without limitation, any supporting
            obligations;

                  (ii) accelerate or extend the time of payment, compromise,
            issue credits, or bring suit on a Borrower's Receivables (in the
            name of the Borrower or the Agent) and otherwise administer and
            collect such Receivables;

                  (iii) sell, assign and deliver the Borrower's Receivables with
            or without advertisement, at public or private sale, for cash, on
            credit or otherwise, subject to applicable law; and

                  (iv) foreclose the security interests created pursuant to the
            Loan Documents by any available procedure, or take possession of any
            or all of the Collateral, without judicial process and enter any
            premises where any Collateral may be located for the purpose of
            taking possession of or removing the same.

This subsection (a) shall govern only those Receivables of the Borrower included
in the Collateral.

            (b) The Agent may bid or become a purchaser at any sale, free from
any right of redemption, which right is expressly waived by the Borrower. If
notice of intended disposition of any Collateral is required by law, it is
agreed that ten days' notice shall constitute reasonable notification. The
Borrower will assemble the Collateral in its possession and make it available at
such locations as the Agent may specify, whether at the premises of the Borrower
or elsewhere, and will make available to the Agent the premises and facilities
of the Borrower for the purpose of the Agent's taking possession of or removing
the Collateral or putting the Collateral in saleable form. The Agent may sell
the Collateral or any part thereof in one or more parcels at public or private
sale, at any exchange, broker's board or at any of the Agent's offices or
elsewhere, for cash, on credit or for future delivery, and upon such other terms
as the Agent may deem commercially reasonable. The Agent shall not be obligated
to make any sale of Collateral regardless of notice of sale having been given.
The Agent may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned. The
Borrower hereby grants the Agent a license, during the continuation of an Event
of Default, to enter and occupy any of the Borrower's leased or owned premises
and facilities, without charge, to exercise any of the Agent's rights or
remedies.

                                      -57-

<PAGE>

            SECTION 9.4 License for Use of Software and Other Intellectual
Property. The Borrower hereby grants to the Agent a license or other right to
use, during the continuation of an Event of Default, without charge, all
computer software programs, data bases, processes, trademarks, tradenames,
copyrights, labels, trade secrets, service marks, advertising materials and
other rights, assets and materials used by the Borrower in connection with its
businesses or in connection with the Collateral.

            SECTION 9.5 No Marshalling; Deficiencies; Remedies Cumulative. The
Agent shall have no obligation to marshal any Collateral or to seek recourse
against or satisfaction of any of the Obligations from one source of Collateral
or from the Borrower before seeking recourse against or satisfaction from
another source of Collateral or from the Borrower. The net cash proceeds
resulting from the Agent's exercise of any of the foregoing rights to liquidate
all or substantially all of the Collateral, including any and all Collections
(after deducting all of the Agent's expenses related thereto), shall be applied
by the Agent to such of the Obligations and in such order as the Agent shall
elect in its sole and absolute discretion, whether due or to become due. The
Borrower shall remain liable to the Agent and the Lenders for any deficiencies,
and the Agent and the Lenders in turn agree to remit to the Borrower or its
successor or assign any surplus resulting therefrom. All of the Agent's and the
Lenders' remedies under the Loan Documents shall be cumulative, may be exercised
simultaneously against any Collateral and the Borrower or in such order and with
respect to such Collateral or the Borrower as the Agent may deem desirable, and
are not intended to be exhaustive.

            SECTION 9.6 Waivers. Except as may be otherwise specifically
provided herein or in any other Loan Document, the Borrower hereby waives any
right to a judicial or other hearing with respect to any action or prejudgment
remedy or proceeding by the Agent to take possession, exercise control over, or
dispose of any item of Collateral in any instance (regardless of where the same
may be located) where such action is permitted under the terms of this Agreement
or any other Loan Document or by applicable law or of the time, place or terms
of sale in connection with the exercise of the Agent's rights hereunder and also
waives any bonds, security or sureties required by any statute, rule or other
law as an incident to any taking of possession by the Agent of any Collateral.
The Borrower also waives any damages (direct, consequential or otherwise)
occasioned by the enforcement of the Agent's rights under this Agreement or any
other Loan Document including the taking of possession of any Collateral or the
giving of notice to any account debtor or the collection of any Receivable of
the Borrower. The Borrower also consents that the Agent may, during the
continuation of an Event of Default, enter upon any premises owned by or leased
to it without obligations to pay rent or for use and occupancy, through
self-help, without judicial process and without having first obtained an order
of any court. These waivers and all other waivers provided for in this Agreement
and the other Loan Documents have been negotiated by the parties, and the
Borrower acknowledges that it has been represented by counsel of its own choice,
has consulted such counsel with respect to its rights hereunder and has freely
and voluntarily entered into this Agreement and the other Loan Documents as the
result of arm's-length negotiations.

                                      -58-

<PAGE>

            SECTION 9.7 Further Rights of the Agent.

            (a) Further Assurances. The Borrower shall do all things and shall
execute and deliver all documents and instruments reasonably requested by the
Agent to protect or perfect any Lien (and the priority thereof other than with
respect to Permitted Liens) of the Agent on the Collateral.

            (b) Insurance; Etc. If the Borrower shall fail to purchase or
maintain insurance (where applicable), or to pay any tax, assessment,
governmental charge or levy, except as the same may be otherwise permitted
hereunder or which is being contested in good faith by appropriate proceedings
and for which adequate reserves have been established in accordance with GAAP,
or if any Lien prohibited hereby shall not be paid in full and discharged or if
the Borrower shall fail to perform or comply with any other covenant, promise or
obligation to the Agent or the Lenders hereunder or under any other Loan
Document, the Agent may (but shall not be required to), if the Borrower has not
done so within ten days of the Agent's written request, perform, pay, satisfy,
discharge or bond the same for the account of the Borrower, and all amounts so
paid by the Agent or the Lenders shall be treated as an Agent Loan or a
Revolving Credit Loan, as the case may be, comprised of Base Rate Advances
hereunder and shall constitute part of the Obligations.

            SECTION 9.8 Interest After Event of Default. The Borrower agrees and
acknowledges that the additional interest and fees that may be charged under
Section 4.2 (a) are an inducement to the Agent and the Lenders to make Advances
and that the Agent and the Lenders would not consummate the transactions
contemplated by this Agreement without the inclusion of such provisions, (b) are
fair and reasonable estimates of the Agent's and the Lenders' costs of
administering the credit facility upon an Event of Default, and (c) are intended
to estimate the Agent's and the Lenders' increased risks upon an Event of
Default.

                                   ARTICLE X.
                                    THE AGENT

            SECTION 10.1 Appointment of Agent.

            (a) Each Lender hereby designates NFBC as its agent and irrevocably
authorizes it to take action on such Lender's behalf under the Loan Documents
and to exercise the powers and to perform the duties described therein and to
exercise such other powers as are reasonably incidental thereto. The Agent may
perform any of its duties by or through its agents or employees.

            (b) The provisions of this Article are solely for the benefit of the
Agent and the Lenders, and the Borrower shall not have any rights as third party
beneficiaries of any of the provisions hereof. The Agent shall act solely as
agent of the Lenders and assume no obligation toward or relationship of agency
or trust with or for the Borrower.

            SECTION 10.2 Nature of Duties of Agent. The Agent shall have no
duties or responsibilities except those expressly set forth in the Loan
Documents. Neither the Agent nor any of its officers, directors, employees or
agents shall be liable for any action taken or omitted by it or them as such
hereunder or in connection herewith, unless caused by its or their gross

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<PAGE>

negligence or willful misconduct. The duties of the Agent shall be mechanical
and administrative in nature. The Agent does not have a fiduciary relationship
with or any implied duties to any Lender or any participant of any Lender.

            SECTION 10.3 Lack of Reliance on Agent.

            (a) Independently and without reliance upon the Agent, each Lender,
to the extent it deems appropriate, has made and shall continue to make (i) its
own independent investigation of the financial or other condition and affairs of
the Borrower in connection with taking or not taking any action related hereto
and (ii) its own appraisal of the creditworthiness of the Borrower, and, except
as expressly provided in this Agreement, the Agent shall have no duty or
responsibility, either initially or on a continuing basis, to provide any Lender
with any credit or other information with respect thereto, whether coming into
its possession before the making of the initial Loans or at any time or times
thereafter.

            (b) The Agent shall not be responsible to any Lender for any
recitals, statements, information, representations or warranties herein or in
any document, certificate or other writing delivered in connection herewith or
for the execution, effectiveness, genuineness, validity, enforceability,
collectibility, priority or sufficiency of this Agreement or the Notes or the
financial or other condition of the Borrower. The Agent shall not be required to
make any inquiry concerning either the performance or observance of any of the
terms, provisions or conditions of this Agreement or any other Loan Document,
the financial condition of the Borrower, or the existence or possible existence
of any Default or Event of Default.

            SECTION 10.4 Certain Rights of the Agent. The Agent may request
instructions from the Required Lenders at any time. If the Agent requests
instructions from the Required Lenders with respect to any action or inaction,
it shall be entitled to await instructions from the Required Lenders. No Lender
shall have any right of action based upon the Agent's action or inaction in
response to instructions from the Required Lenders.

            SECTION 10.5 Reliance by Agent. The Agent may rely upon any written
or telephonic communication it believes to be genuine and to have been signed,
sent or made by the proper Person. The Agent may obtain the advice of legal
counsel (including counsel for the Borrower with respect to matters concerning
the Borrower), independent public accountants and other experts selected by it
and shall have no liability for any action or inaction taken or omitted to be
taken by it in good faith based upon such advice.

            SECTION 10.6 Indemnification of Agent. To the extent the Agent is
not reimbursed and indemnified by the Borrower, each Lender will reimburse and
indemnify the Agent to the extent of such Lender's Pro Rata Share (determined as
of the time that such indemnity payment is sought) for any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including counsel fees and disbursements) or disbursements of any kind
or nature whatsoever which may be imposed on, incurred by or asserted against
the Agent in performing its duties hereunder or otherwise relating to the Loan
Documents unless resulting from the Agent's gross negligence or willful
misconduct. The agreements contained in this Section shall survive any
termination of this Agreement and the other Loan Documents and the payment in
full of the Obligations.

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<PAGE>

            SECTION 10.7 The Agent in Its Individual Capacity. In its individual
capacity, the Agent shall have the same rights and powers hereunder as any other
Lender or holder of a Note or participation interest and may exercise the same
as though it was not performing the duties specified herein. The terms
"Lenders," "Required Lenders," "holders of Notes," or any similar terms shall,
unless the context clearly otherwise indicates, include NFBC in its individual
capacity. The Agent and its Affiliates may accept deposits from, lend money to,
acquire equity interests in, and generally engage in any kind of banking, trust,
financial advisory or other business with the Borrower or any Affiliate of the
Borrower as if it were not performing the duties specified herein, and may
accept fees and other consideration from the Borrower for services in connection
with this Agreement and otherwise without having to account for the same to the
Lenders.

            SECTION 10.8 Holders of Notes. The Agent may deem and treat the
payee of any Note as the owner thereof for all purposes hereof unless and until
a written notice of the assignment or transfer thereof shall have been filed
with the Agent. Any request, authority or consent of any Person who, at the time
of making such request or giving such authority or consent, is the holder of any
Note, shall be conclusive and binding on any subsequent holder, transferee or
assignee of such Note or of any Note or Notes issued in exchange therefor.

            SECTION 10.9 Successor Agent.

            (a) The Agent may, upon twenty Business Days' notice to the Lenders
and the Borrower, resign by giving written notice thereof to the Lenders and the
Borrower. Any such resignation shall be effective upon the appointment of a
successor Agent.

            (b) Upon receipt of notice of resignation by the Agent, the Required
Lenders may appoint a successor agent which shall also be a Lender. If a
successor agent has not accepted its appointment within fifteen Business Days,
then the retiring agent may, on behalf of the Lenders, appoint a successor agent
which shall be subject to the written approval of the Borrower, which approval
shall not be unreasonably withheld and shall be delivered to the Required
Lenders within ten Business Days after the Borrower's receipt of notice of a
proposed successor agent.

            (c) Upon its acceptance of the agency hereunder, such successor
agent shall succeed to and become vested with all the rights, powers, privileges
and duties of the retiring agent, and the retiring agent shall be discharged
from its duties and obligations under this Agreement. The retiring agent shall
continue to have the benefit of the provisions of this Article for any action or
inaction while it was agent.

            SECTION 10.10 Collateral Matters.

            (a) Except as otherwise set forth herein, any action or exercise of
powers by the Agent provided under the Loan Documents, together with such other
powers as are reasonably incidental thereto, shall be deemed authorized by and
binding upon all of the Lenders. At any time and without notice to or consent
from any Lender, the Agent may take any action necessary or advisable to perfect
and maintain the perfection of the Liens upon the Collateral.

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            (b) The Agent is authorized to release any Lien granted to or held
by it upon any Collateral (i) upon termination of the Commitments and payment
and satisfaction of all of the Obligations, (ii) required to be delivered from
permitted sales of Collateral hereunder, if any, upon receipt of the proceeds by
the Agent (or, if permitted hereunder, the Borrower) or (iii) if the release can
be and is approved by the Required Lenders (or all the Lenders, if so required
under Section 11.5). The Agent may request and the Lenders will provide
confirmation of the Agent's authority to release particular types or items of
Collateral.

            (c) Upon any sale or transfer of Collateral which is expressly
permitted pursuant to the terms of this Agreement, or consented to in writing by
the Required Lenders or all of the Lenders, as applicable, and upon at least
five Business Days' prior written request by the Borrower, the Agent shall (and
is hereby irrevocably authorized by the Lenders to) execute such documents as
may be necessary to evidence the release of the Liens granted to the Agent for
the benefit of the Lenders herein or pursuant hereto upon the Collateral that
was sold or transferred, provided that (i) the Agent shall not be required to
execute any such document on terms which, in the Agent's reasonable opinion,
would expose the Agent to liability or create any obligation or entail any
consequence other than the release of such Liens without recourse or warranty
and (ii) such release shall not in any manner discharge, affect or impair the
Obligations or any Liens upon (or obligations of the Borrower in respect of) all
interests retained by the Borrower, including (without limitation) the proceeds
of the sale, all of which shall continue to constitute part of the Collateral.
In the event of any sale or transfer of Collateral, or any foreclosure with
respect to any of the Collateral, the Agent shall be authorized to deduct all of
the expenses reasonably incurred by the Agent from the proceeds of any such
sale, transfer or foreclosure.

            (d) The Agent shall not have any obligation to assure that the
Collateral exists or is owned by the Borrower, that the Collateral is cared for,
protected or insured, or that the Liens on the Collateral have been created or
perfected or have any particular priority. With respect to the Collateral, the
Agent may act in any manner it may deem appropriate, in its sole discretion,
given NFBC's own interest in the Collateral as one of the Lenders, and it shall
have no duty or liability whatsoever to the Lenders with respect thereto, except
for its gross negligence or willful misconduct.

            SECTION 10.11 Actions with Respect to Defaults. In addition to the
Agent's right to take actions on its own accord as permitted under this
Agreement, the Agent shall take such action with respect to an Event of Default
as shall be directed by the Required Lenders. Until the Agent shall have
received such directions, the Agent may act or not act as it deems advisable and
in the best interests of the Lenders.

            SECTION 10.12 Delivery of Information. The Agent shall not be
required to deliver to any Lender originals or copies of any documents,
instruments, notices, communications or other information received by the Agent
from the Borrower, the Required Lenders, any Lender or any other Person under or
in connection with this Agreement or any other Loan Document except (i) for the
Financial Statements, Business Plans, certificates and reports received by the
Agent from the Borrower under Section 7.1(k)(i), (ii), (iii), (iv), (v) or
(viii); (ii) for any notice received by the Agent from the Borrower under
Section 7.1(h); (iii) as otherwise specifically provided in this Agreement or
any other Loan Document; and (iv) as

                                      -62-

<PAGE>

specifically requested from time to time in writing by any Lender with respect
to a specific document, instrument, notice or other written communication
received by and in the possession of the Agent at the time of receipt of such
request and then only in accordance with such specific request.

                                  ARTICLE XI.
                               GENERAL PROVISIONS

            SECTION 11.1 Notices. Except as otherwise provided herein, all
notices and other communications hereunder shall be in writing and sent by
certified or registered mail, return receipt requested, by overnight delivery
service, with all charges prepaid, by hand delivery, or by telecopier followed
by a hard copy sent by regular mail, if to the Agent, then to North Fork
Business Capital Corporation, 1415 West 22nd Street, Suite 750E, Oak Brook,
Illinois 60523, Telecopy: (630) 684-0228, Attn.: Regional Manager, with a copy
to North Fork Business Capital Corporation, 275 Broadhollow Road, P.O. Box 8914,
Melville, New York 11747, Telecopy: (631) 501-5524, Attn.: General Counsel, if
to any Lender, then to its address specified in Schedule 1 or in the Assignment
and Acceptance under which it became a party hereto, and if to the Borrower,
then to 100 Clark Street, St. Charles, Missouri 63301, Telecopy: (636) 940-5109,
Attn.: Mr. Umesh Choksi, with a copy to Icahn Associates Corp., 767 Fifth
Avenue, 47th Floor, New York, New York 10153, Telecopy: (212) 668-1158, Attn.:
Jesse A. Lynn, Esq., or, in each case, to such other address as the Borrower, a
Lender or the Agent may specify to the other parties in the manner required
hereunder. All such notices and correspondence shall be deemed given (i) if sent
by certified or registered mail, three Business Days after being postmarked,
(ii) if sent by overnight delivery service or by hand delivery, when received at
the above stated addresses or when delivery is refused and (iii) if sent by
telecopier transmission, when such transmission is confirmed.

            SECTION 11.2 Delays; Partial Exercise of Remedies. No delay or
omission of the Agent or any Lender to exercise any right or remedy hereunder
shall impair any such right or operate as a waiver thereof. No single or partial
exercise by the Agent or any Lender of any right or remedy shall preclude any
other or further exercise thereof, or preclude any other right or remedy.

            SECTION 11.3 Right of Setoff. In addition to and not in limitation
of all rights of offset that the Agent, any Lender or any of their respective
Affiliates may have under applicable law, while an Event of Default is
continuing, the Agent, the Lenders and their respective Affiliates shall have
the right to set off and apply any and all deposits (general or special, time or
demand, provisional or final, or any other type) at any time held and any other
Indebtedness at any time owing by the Agent, the Lenders or any of their
respective Affiliates to or for the credit or the account of the Borrower or the
Borrower's Subsidiaries against any and all of the Obligations. In the event
that the Agent or any Lender exercises any of its rights under this Section
11.3, the Agent or such Lender shall provide notice to the Borrower of such
exercise, provided that, without prejudice to the Borrower's right to assert a
claim for any damages it may incur as a result of any failure by the Agent or
such Lender to give such notice, the failure to give such notice shall not
affect the validity of the exercise of such rights.

                                      -63-

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            SECTION 11.4 Indemnification; Reimbursement of Expenses of
Collection.

            (a) The Borrower hereby agrees that, whether or not any of the
transactions contemplated by this Agreement or the other Loan Documents are
consummated, the Borrower will indemnify, defend and hold harmless (on an
after-tax basis) the Agent, the Lenders and their respective successors,
assigns, directors, officers, agents, employees, advisors, shareholders and
attorneys (each, an "Indemnified Party") from and against any and all losses,
claims, damages, liabilities, deficiencies, obligations, fines, penalties,
actions (whether threatened or existing), judgments, suits (whether threatened
or existing) or expenses (including, without limitation, reasonable fees and
disbursements of counsel, experts, consultants and other professionals) incurred
by any of them (collectively, "Claims") (except, in the case of each Indemnified
Party, to the extent that any Claim is determined in a final and non-appealable
judgment by a court of competent jurisdiction to have directly resulted from
such Indemnified Party's gross negligence or willful misconduct) arising out of
or by reason of (i) any litigation, investigation, claim or proceeding related
to (A) this Agreement, any other Loan Document or the transactions contemplated
hereby or thereby, (B) any actual or proposed use by the Borrower of the
proceeds of the Loans or (C) the Agent's or any Lender's entering into this
Agreement, the other Loan Documents or any other agreements and documents
relating hereto (other than consequential damages and loss of anticipated
profits or earnings), including, without limitation, amounts paid in settlement
(provided that any such settlement has been approved by the Borrower), court
costs and the fees and disbursements of counsel incurred in connection with any
such litigation, investigation, claim or proceeding, (ii) any remedial or other
action taken or required to be taken by the Borrower in connection with
compliance by the Borrower, or any of its properties, with any federal, state or
local Environmental Laws and (iii) any pending, threatened or actual action,
claim, proceeding or suit by any shareholder or director of the Borrower or any
actual or purported violation of the Borrower's Governing Documents or any other
agreement or instrument to which the Borrower is a party or by which any of its
properties is bound. In addition, the Borrower shall, upon demand, pay to the
Agent all costs and expenses incurred by the Agent (including the reasonable
fees and disbursements of counsel and other professionals) in connection with
the preparation, execution, delivery, administration, modification and amendment
of the Loan Documents, and pay to the Agent and each Lender all costs and
expenses (including the reasonable fees and disbursements of counsel and other
professionals) paid or incurred by the Agent or such Lender in (A) enforcing or
defending its rights under or in respect of this Agreement, the other Loan
Documents or any other document or instrument now or hereafter executed and
delivered in connection herewith, (B) collecting the Obligations or otherwise
administering this Agreement and (C) foreclosing or otherwise realizing upon the
Collateral or any part thereof. If and to the extent that the obligations of the
Borrower hereunder are unenforceable for any reason, the Borrower hereby agrees
to make the maximum contribution to the payment and satisfaction of such
obligations that is permissible under applicable law.

            (b) The Borrower' obligations under Sections 4.6 and 4.7 and this
Section 11.4 shall survive any termination of this Agreement and the other Loan
Documents, the termination and the payment in full of the Obligations, and are
in addition to, and not in substitution of, any of the other Obligations.

                                      -64-

<PAGE>

            SECTION 11.5 Amendments, Waivers and Consents. No amendment or
waiver of any provision of this Agreement or any other Loan Document, or consent
to any departure by the Borrower therefrom, shall in any event be effective
unless the same shall be in writing and signed by the Borrower and the Required
Lenders (or by the Agent on their behalf) without taking into account the
Commitments or Loans held by Defaulting Lenders or the Borrower or any of its
Affiliates (determined without giving effect to the proviso to the definition of
"Affiliates"), and then such amendment, waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given;
provided, however, that no amendment, waiver or consent shall, unless in writing
and signed by the Borrower and all the Lenders (other than any Defaulting Lender
or the Borrower or any of its Affiliates (determined without giving effect to
the proviso to the definition of "Affiliates")), do any of the following at any
time: (a) change the number of Lenders that shall be required for the Lenders or
any of them to take any action hereunder; (b) amend the definition of "Required
Lenders"; (c) amend this Section 11.5; (d) reduce the amount of principal of, or
interest on, or the interest rate applicable to, the Loans or any fees or other
amounts payable hereunder; (e) postpone any date on which any payment of
principal of, or interest on, the Loans or any fees or other amounts payable
hereunder is required to be made; (f) release all or substantially all the
Collateral; or (g) amend the definition of "Borrowing Base" or modify Section
2.2(a)(ii)if the effect thereof would be to increase the amount of Revolving
Credit Loans or CapEx Loans, respectively, available to the Borrower; provided,
further that no amendment, waiver or consent shall, unless in writing and signed
by (i) a Lender, change the Pro Rata Share or increase the Commitment of such
Lender, and (ii) the Agent, in addition to the Lenders required above, to take
any such action that affects the rights or duties of the Agent under this
Agreement or any other Loan Document.

            SECTION 11.6 Nonliability of Agent and Lenders. The relationship
among the Borrower and each Lender shall be solely that of borrower and lender.
Neither the Agent nor any Lender shall have any fiduciary responsibilities to
the Borrower. Neither the Agent nor any Lender undertakes any responsibility to
the Borrower to review or inform the Borrower of any matter in connection with
any phase of the Borrower' business or operations.

            SECTION 11.7 Assignments and Participations.

            (a) Borrower Assignment. The Borrower shall not assign this
Agreement or any of its rights or obligations hereunder without the prior
written consent of the Agent and each of the Lenders.

            (b) Lender Assignments. Each Lender may, with the consent of the
Agent (not to be unreasonably withheld), assign to one or more Eligible
Assignees (or, if an Event of Default has occurred and is continuing, to one or
more other Persons) all or a portion of its rights and obligations under this
Agreement, the Notes and the other Loan Documents upon execution and delivery to
the Agent, for its acceptance and recording in the Register, of an Assignment
and Acceptance, together with surrender of any Note or Notes subject to such
assignment and a processing and recordation fee payable to the Agent for its
account of $3,500. No such assignment shall be for less than $5,000,000 of the
Commitments or Loans unless it is to another Lender, and each such assignment
shall be of a uniform, and not a varying, percentage of all rights and
obligations in respect of the Commitments and the Revolving Credit Loans. Upon
the execution and delivery to the Agent of an Assignment and Acceptance and the
payment of the

                                      -65-

<PAGE>

recordation fee to the Agent, from and after the date specified as the effective
date in the Assignment and Acceptance (the "Acceptance Date"), (i) the assignee
thereunder shall be a party hereto, and, to the extent that rights and
obligations hereunder have been assigned to it under such Assignment and
Acceptance, such assignee shall have the rights and obligations of a Lender
hereunder and (ii) the assignor thereunder shall, to the extent that rights and
obligations hereunder have been assigned by it under such Assignment and
Acceptance, relinquish its rights (other than any rights it may have under
Sections 4.6, 4.7 and 11.4, which shall survive such assignment) and be released
from its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender's rights
and obligations under this Agreement, such Lender shall cease to be a party
hereto).

            (c) Agreements of Assignee. By executing and delivering an
Assignment and Acceptance, the assignee thereunder confirms and agrees as
follows: (i) other than as provided in such Assignment and Acceptance, the
assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement,
the Notes or any other Loan Documents, (ii) such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower or the performance or observance by the
Borrower of any of its obligations under this Agreement or any other Loan
Document, (iii) such assignee confirms that it is an Eligible Assignee and has
received a copy of this Agreement, together with copies of the Financial
Statements referred to in Section 6.1(i), the Financial Statements delivered
pursuant to Section 7.1(k), if any, and such other documents and information as
it has deemed appropriate to make its own credit analysis and decision to enter
into such Assignment and Acceptance, (iv) such assignee will, independently and
without reliance upon the Agent, such assigning Lender or any other Lender and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement, (v) such assignee appoints and authorizes the Agent to
take such action as agent on its behalf and to exercise such powers under this
Agreement as are delegated to the Agent by the terms hereof, together with such
powers as are reasonably incidental thereto, and (vi) such assignee agrees that
it will perform in accordance with their terms all of the obligations which by
the terms of this Agreement are required to be performed by it as a Lender.

            (d) Agent's Register. The Agent shall maintain a register of the
names and addresses of the Lenders, their Commitments and the principal amount
of their Loans (the "Register"). The Agent shall also maintain a copy of each
Assignment and Acceptance delivered to and accepted by it and modify the
Register to give effect to each Assignment and Acceptance. The entries in the
Register shall be conclusive and binding for all purposes, absent manifest
error, and the Borrower, the Agent and the Lenders may treat each Person whose
name is recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register and copies of each Assignment and Acceptance shall be
available for inspection by the Borrower or any Lender at any reasonable time
and from time to time upon reasonable prior notice. Upon its receipt of each
Assignment and Acceptance and surrender of the affected Note or Notes subject to
such assignment, the Agent will give prompt notice thereof to the Borrower.
Within five Business Days after its receipt of such notice, the Borrower shall
execute and deliver to the Agent a new Note to the order of the assignee in the
amount of the applicable Commitment or

                                      -66-

<PAGE>

Loans assumed by it and to the assignor in the amount of the applicable
Commitment or Loans retained by it, if any. Such new Note or Notes shall
re-evidence the indebtedness outstanding under the surrendered Note or Notes,
shall be in an aggregate principal amount equal to the aggregate principal
amount of such surrendered Note or Notes and shall be dated as of the Acceptance
Date. The Agent shall be entitled to rely upon the Register exclusively for
purposes of identifying the Lenders hereunder.

            (e) Lender Participations. Each Lender may sell participations to
one or more parties (each, a "Participant") in or to all or a portion of its
rights and obligations under this Agreement, the Notes and the other Loan
Documents. Notwithstanding a Lender's sale of a participation interest, such
Lender's obligations hereunder shall remain unchanged. The Borrower, the Agent,
and the other Lenders shall continue to deal solely and directly with such
Lender. No Lender shall grant any Participant the right to approve any amendment
or waiver of this Agreement except to the extent such amendment or waiver would
(i) increase the Commitment of the Lender from which the Participant purchased
its participation interest; (ii) reduce the principal of, or rate or amount of
interest on, the Loans subject to such participation interest; or (iii) postpone
any date fixed for any payment of principal of, or interest on, the Loans
subject to such participation interest. To the extent permitted by applicable
law, each Participant shall also be entitled to the benefits of Section 11.3 as
if it were a Lender, provided that such Participant agrees to be subject to the
last sentence of Section 2.9(b) as if it were a Lender.

            (f) Securities Laws. Each Lender agrees that it will not make any
assignment hereunder in any manner or under any circumstances that would require
registration or qualification of, or filings in respect of, any Loan, Note or
other Obligation under the securities laws of the United States or of any other
jurisdiction.

            (g) Information. In connection with their efforts to assign their
rights or obligations or sell participations pursuant to Sections 11.7(b) and
(e), the Agent and the Lenders may disclose any information they have, now or in
the future, with respect to the business of the Borrower to prospective
assignees or purchasers, provided that such disclosure is subject to written
confidentiality arrangements customary for assignment or participation
transactions of such type.

            (h) Pledge to Federal Reserve Bank. Any Lender may at any time
pledge or assign a security interest in all or any portion of its rights under
this Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank, and this Section
shall not apply to any such pledge or assignment of a security interest,
provided that no such pledge or assignment of a security interest shall release
a Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

            SECTION 11.8 Counterparts; Telecopied Signatures. This Agreement and
any waiver or amendment hereto may be executed in counterparts and by the
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all of which shall together constitute one
and the same instrument. This Agreement and each of the other Loan Documents may
be executed and delivered by telecopier or other facsimile

                                      -67-

<PAGE>

transmission all with the same force and effect as if the same was a fully
executed and delivered original manual counterpart.

            SECTION 11.9 Severability. In case any provision in or obligation
under this Agreement, any Note or any other Loan Document shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions or obligations, or of such provision
or obligation in any other jurisdiction, shall not in any way be affected or
impaired thereby.

            SECTION 11.10 Maximum Rate. Notwithstanding anything to the contrary
contained elsewhere in this Agreement or in any other Loan Document, the parties
hereto hereby agree that all agreements between them under this Agreement and
the other Loan Documents, whether now existing or hereafter arising and whether
written or oral, are expressly limited so that in no contingency or event
whatsoever shall the amount paid, or agreed to be paid, to the Agent or any
Lender for the use, forbearance, or detention of the money loaned to the
Borrower and evidenced hereby or thereby or for the performance or payment of
any covenant or obligation contained herein or therein, exceed the maximum
non-usurious interest rate, if any, that at any time or from time to time may be
contracted for, taken, reserved, charged or received on the Obligations, under
the laws of the State of New York (or the laws of any other jurisdiction whose
laws may be mandatorily applicable notwithstanding other provisions of this
Agreement and the other Loan Documents), or under applicable federal laws which
may presently or hereafter be in effect and which allow a higher maximum
non-usurious interest rate than under the laws of the State of New York (or such
other jurisdiction), in any case after taking into account, to the extent
permitted by applicable law, any and all relevant payments or charges under this
Agreement and the other Loan Documents executed in connection herewith, and any
available exemptions, exceptions and exclusions (the "Highest Lawful Rate"). If
due to any circumstance whatsoever, fulfillment of any provision of this
Agreement or any of the other Loan Documents at the time performance of such
provision shall be due shall exceed the Highest Lawful Rate, then,
automatically, the obligation to be fulfilled shall be modified or reduced to
the extent necessary to limit such interest to the Highest Lawful Rate, and if
from any such circumstance any Lender should ever receive anything of value
deemed interest by applicable law which would exceed the Highest Lawful Rate,
such excessive interest shall be applied to the reduction of the principal
amount then outstanding hereunder or on account of any other then outstanding
Obligations and not to the payment of interest, or if such excessive interest
exceeds the principal unpaid balance then outstanding hereunder and such other
then outstanding Obligations, such excess shall be refunded to the Borrower. All
sums paid or agreed to be paid to the Lenders for the use, forbearance, or
detention of the Obligations and other Indebtedness of the Borrower to the
Lenders shall, to the extent permitted by applicable law, be amortized,
prorated, allocated and spread throughout the full term of such Indebtedness,
until payment in full thereof, so that the actual rate of interest on account of
all such Indebtedness does not exceed the Highest Lawful Rate throughout the
entire term of such Indebtedness. The terms and provisions of this Section shall
control every other provision of this Agreement, the other Loan Documents and
all other agreements among the parties hereto.

            SECTION 11.11 Entire Agreement; Successors and Assigns;
Interpretation. This Agreement and the other Loan Documents constitute the
entire agreement among the parties, supersede any prior written and verbal
agreements among them, and shall bind and

                                      -68-

<PAGE>

benefit the parties and their respective successors and permitted assigns. This
Agreement shall be deemed to have been jointly drafted, and no provision of it
shall be interpreted or construed for or against a party because such party
purportedly prepared or requested such provision, any other provision, or this
Agreement as a whole.

            SECTION 11.12 LIMITATION OF LIABILITY. NEITHER THE AGENT NOR ANY
LENDER SHALL HAVE ANY LIABILITY TO THE BORROWER (WHETHER SOUNDING IN CONTRACT,
TORT OR EQUITY OR OTHERWISE) FOR LOSSES SUFFERED BY THE BORROWER IN CONNECTION
WITH, ARISING OUT OF, OR IN ANY WAY RELATED TO THE TRANSACTIONS OR RELATIONSHIPS
CONTEMPLATED BY THIS AGREEMENT, OR ANY ACT, OMISSION OR EVENT OCCURRING IN
CONNECTION THEREWITH, UNLESS IT IS DETERMINED BY A FINAL AND NONAPPEALABLE
JUDGMENT OR COURT ORDER BINDING ON THE AGENT OR SUCH LENDER THAT THE LOSSES WERE
THE RESULT OF ACTS OR OMISSIONS CONSTITUTING GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT OF THE AGENT OR SUCH LENDER. THE BORROWER HEREBY WAIVES ALL FUTURE
CLAIMS AGAINST THE AGENT AND EACH LENDER FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR
PUNITIVE DAMAGES.

            SECTION 11.13 GOVERNING LAW. THE VALIDITY, INTERPRETATION AND
ENFORCEMENT OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND ANY DISPUTE
ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS, WHETHER SOUNDING IN CONTRACT, TORT OR EQUITY OR OTHERWISE, SHALL BE
GOVERNED BY THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICTS OF LAW PROVISIONS
OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND DECISIONS
OF THE STATE OF NEW YORK.

            SECTION 11.14 SUBMISSION TO JURISDICTION. ALL DISPUTES BETWEEN OR
AMONG THE BORROWER, THE AGENT OR ANY LENDER BASED UPON, ARISING OUT OF, OR IN
ANY WAY RELATING TO (I) THIS AGREEMENT; (II) ANY OTHER LOAN DOCUMENT OR OTHER
PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN OR AMONG THE BORROWER, THE
AGENT AND A LENDER; OR (III) ANY CONDUCT, ACT OR OMISSION OF THE BORROWER, THE
AGENT, A LENDER OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES,
AGENTS, ATTORNEYS OR OTHER AFFILIATES, IN EACH CASE WHETHER SOUNDING IN
CONTRACT, TORT OR EQUITY OR OTHERWISE, SHALL BE RESOLVED ONLY BY STATE AND
FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK AND THE COURTS TO WHICH AN APPEAL
THEREFROM MAY BE TAKEN; PROVIDED, HOWEVER, THAT THE AGENT SHALL HAVE THE RIGHT,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, TO PROCEED AGAINST THE
BORROWER OR ITS PROPERTY IN (A) ANY COURTS OF COMPETENT JURISDICTION AND VENUE
AND (B) ANY LOCATION SELECTED BY THE AGENT TO ENABLE THE AGENT TO REALIZE ON
SUCH PROPERTY, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE
AGENT. THE BORROWER AGREES THAT IT WILL NOT ASSERT ANY PERMISSIVE COUNTERCLAIMS,
SETOFFS OR CROSS-CLAIMS IN ANY PROCEEDING BROUGHT BY THE AGENT. THE

                                      -69-

<PAGE>

BORROWER WAIVES ANY OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT IN
WHICH THE AGENT HAS COMMENCED A PROCEEDING, INCLUDING, WITHOUT LIMITATION, ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON FORUM NON CONVENIENS.

            SECTION 11.15 SERVICE OF PROCESS. THE BORROWER HEREBY IRREVOCABLY
DESIGNATES CORPORATION SERVICE COMPANY, 1133 AVENUE OF THE AMERICAS, NEW YORK,
NEW YORK 10036 OR ITS SUCCESSOR AS THE DESIGNEE AND AGENT OF THE BORROWER TO
RECEIVE, FOR AND ON BEHALF OF THE BORROWER, SERVICE OF PROCESS IN ANY LEGAL
ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT.
IT IS UNDERSTOOD THAT A COPY OF SUCH PROCESS SERVED ON SUCH AGENT AT ITS ADDRESS
WILL BE PROMPTLY FORWARDED BY MAIL TO THE BORROWER, BUT THE FAILURE OF THE
BORROWER TO RECEIVE SUCH COPY SHALL NOT AFFECT IN ANY WAY THE SERVICE OF SUCH
PROCESS. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE AGENT TO SERVE LEGAL
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

            SECTION 11.16 JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY
IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING
TO (I) THIS AGREEMENT; (II) ANY OTHER LOAN DOCUMENT OR OTHER PRESENT OR FUTURE
INSTRUMENT OR AGREEMENT BETWEEN OR AMONG THE BORROWER, THE AGENT AND A LENDER;
OR (III) ANY CONDUCT, ACT OR OMISSION OF THE BORROWER, THE AGENT, A LENDER OR
ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR
OTHER AFFILIATES, IN EACH CASE WHETHER SOUNDING IN CONTRACT, TORT OR EQUITY OR
OTHERWISE.

                                      -70-

<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their proper and duly authorized officers as of the date first
set forth above.

                                    BORROWER

                                    AMERICAN RAILCAR INDUSTRIES, INC.

                                    By: /s/ William P. Benac
                                        --------------------------------
                                        William P. Benac
                                        Chief Financial Officer

                                    LENDERS

                                    NORTH FORK BUSINESS CAPITAL CORPORATION

                                    By: /s/ Robert L. Heinz
                                        --------------------------------
                                        Robert L. Heinz
                                        Senior Vice President

                                    THE CIT GROUP/BUSINESS CREDIT, INC.

                                    By: /s/ James Anderson
                                        --------------------------------
                                        James Anderson
                                        Vice President

                                    ASSOCIATED BANK, NATIONAL ASSOCIATION

                                    By: /s/ Steven R. Powell
                                        --------------------------------
                                        Steven R. Powell
                                        Vice President

                                      -71-

<PAGE>

                                    AGENT

                                    NORTH FORK BUSINESS CAPITAL
                                    CORPORATION

                                    By: /s/ Robert L. Heinz
                                        --------------------------------
                                        Robert L. Heinz
                                        Senior Vice President

                                      -72-<PAGE>

                                                                    EXHIBIT 10.1

                           PURCHASE AND SALE AGREEMENT

     THIS AGREEMENT, made and entered into as of the 22nd day of March, 2006,
which is the Effective Date (as herein defined), by, between and among CRAWFORD
& COMPANY, a Georgia corporation ("Seller"), BUCKHEAD TRADING & INVESTMENT
COMPANY, LLC, a Georgia limited liability company ("Purchaser"), RICHARD BOWERS
& CO., a Georgia corporation ("Seller's Broker"), EASLAN CAPITAL OF ATLANTA,
INC., a Georgia corporation ("Purchaser's Broker;" Seller's Broker and
Purchaser's Broker are herein together referred to as "Broker"), and CALLOWAY
TITLE AND ESCROW, L.L.C., a Georgia limited liability company ("Escrow Agent").

     In consideration of the agreements herein contained, the parties hereto
agree as follows:

CONVEYANCE

     1. a. Seller agrees to sell and convey, and Purchaser agrees to purchase
and take title to, all that tract or parcel of land lying and being in Fulton
County, Georgia, and being more particularly described in EXHIBIT "A" attached
hereto and by this reference made a part hereof, including all improvements,
fixtures, rights, privileges, easements, hereditaments and appurtenances thereto
belonging, and all right, title and interest of Seller in and to the land lying
in the bed of any street, road or avenue, open or proposed, public or private,
in front of or adjoining said property ("Property").

          b. At Closing Seller shall transfer and assign to Purchaser all of
Seller's right, title and interest in and to all tangible and intangible
property owned by Seller and used in connection with the Property, including,
without limitation, all equipment, machinery, appliances, and other articles of
personal property located on and used in connection with the operation of the
Property, and all plans, specifications, surveys, permits, approvals and
licenses issued by any governmental authorities pertaining to the ownership,
operation, use or maintenance of the improvements on the Property, and all
warranties, if any, relating to the construction, maintenance, repair or
replacement of the improvements on the Property or any portion thereof
(collectively, the "Personal Property"); provided, however, that the Personal
Property shall not include the furniture (including employee workstations),
office equipment, computers, office supplies, and other personal property used
by Seller in connection with the operation of its business upon the Property.

EARNEST MONEY

     2. Purchaser will pay the sum of Fifty Thousand and No/100 Dollars
($50,000.00) ("Initial Deposit") to Escrow Agent within five (5) business days
following the Effective Date. Provided Purchaser has not elected to terminate
this Agreement during the Inspection Period pursuant to Paragraph 5 hereof,
Purchaser shall deliver to Escrow Agent, within five (5) business days following
the expiration of the Inspection Period, an irrevocable standby letter of credit
addressed to Seller, as beneficiary, in the amount of Two Hundred Fifty Thousand
and No/100 Dollars ($250,000.00), conditioned for payment on delivery by Seller
to the issuer of said letter of

<PAGE>

credit of a sight draft and an affidavit signed by an authorized corporate
officer of Seller stating that the sale transaction has failed to close as a
result of a default by Purchaser, which default has not been cured within the
applicable cure period provided herein (said letter of credit, as increased
pursuant to the provisions of this Agreement, being herein referred to as the
"Letter of Credit"). The Letter of Credit shall otherwise be in a form
reasonably satisfactory to Seller and Purchaser. Upon delivery by Purchaser to
Escrow Agent of the Letter of Credit, Escrow Agent shall return the Initial
Deposit to Purchaser. The failure of Purchaser to deliver a Letter of Credit to
Escrow Agent within the time period provided herein, which failure is not cured
within five (5) business days following receipt by Purchaser of written notice
of such failure, shall be a default by Purchaser under this Agreement and shall
entitle Seller to exercise its rights under subparagraph 15.b. hereof. The
Initial Deposit and the Letter of Credit shall be held by Escrow Agent pursuant
to the terms of the Special Stipulations attached hereto and incorporated
herein. The Letter of Credit shall be returned to Purchaser at the Closing or
shall be delivered to Seller for negotiation as specifically provided in this
Agreement. All interest earned on the Initial Deposit shall belong to Purchaser.

PURCHASE PRICE AND PAYMENT

     3. The purchase price ("Purchase Price") of the Property shall be TWELVE
MILLION AND NO/100 DOLLARS ($12,000,000.00) and shall, subject to adjustment by
the pro-rations provided in this Agreement, be paid at Closing by wire delivery
of funds through the Federal Reserve System to an account designated in writing
by Seller.

CLOSING AND TITLE

     4. a. The transaction contemplated under this Agreement shall be
consummated at a closing ("Closing") at the offices of Marks & Williams, LLC,
Two Midtown Plaza, Suite 1150, 1349 West Peachtree Street, Atlanta, GA 30309.
The Closing shall be held at 2:00 p.m. on May 22, 2006 ("Closing Date").
Possession of the Property shall be granted and delivered to Purchaser by Seller
at Closing, free and clear of all leases, subleases and other occupancy rights
of any person or entity, subject, however, to the rights of Seller under the
"Lease," as defined in Section 10.k. hereof, which Lease shall be in the form
attached hereto as EXHIBIT "B". At Closing Seller shall pay the cost to record
any cancellations of existing monetary encumbrances, the State of Georgia Real
Estate Transfer Tax and its attorney's fees. Purchaser and Seller shall each be
responsible for 50% of the fee charged by the Escrow Agent to hold the Initial
Deposit and the Letter of Credit (not to exceed a total of $250.00). Purchaser
shall be responsible for all other closing costs.

     Purchaser shall have the right to extend the Closing Date to June 5, 2006,
by sending notice to Seller not less than ten (10) days before the scheduled
Closing Date and depositing with Escrow Agent the sum of $200,000.00 ("Extension
Deposit"), or by delivering to Escrow Agent an amendment to the Letter of Credit
increasing the amount thereof by $200,000.00. Seller shall cooperate with
Purchaser if Purchaser elects to increase the Letter of Credit instead of
depositing the Extension Deposit in cash. At Closing, the Extension Deposit (if
deposited in cash) shall be delivered to Seller and credited against the
Purchase Price. In the event Closing does not occur for any reason, the
Extension Deposit shall follow the Letter of Credit; if the Letter of Credit is
delivered to Seller, the Extension Deposit shall be paid to Seller; if the
Letter of Credit is returned to Purchaser, the Extension Deposit shall also be
returned to Purchaser.

                                       -2-

<PAGE>

          b. At Closing, Seller shall convey to Purchaser "good and marketable
fee simple title" to the Property, by Limited Warranty Deed, subject only to (i)
the lien for ad valorem taxes for the calendar year of Closing, not yet due and
payable, (ii) the Lease, and (iii) any other matters affecting title to the
Property to which Purchaser fails to object or which Purchaser waives pursuant
to subparagraph (c) below (collectively, the "Permitted Exceptions"). "Good and
marketable, fee simple title" is hereby defined as title which is deemed
marketable in accordance with the Title Standards of the State Bar of Georgia
and is insurable by Chicago Title Insurance Company ("Title Company") at its
standard rates pursuant to an ALTA Form-B Owner's Policy (latest revised
version), in the amount of the Purchase Price, subject only to the Permitted
Exceptions.

          c. Purchaser shall have twenty (20) days after the Effective Date in
which to search title to the Property, and in which to furnish Seller with a
written statement of any title objections affecting said title which are
unacceptable to Purchaser. Purchaser's failure to specify in its notice any
matters appearing of record on the effective date of Purchaser's initial title
examination shall be deemed to be, and shall constitute, a waiver of any such
objections; Purchaser's failure to timely deliver a notice shall be deemed to
be, and shall constitute, a waiver of any such objections appearing of record on
the last day such notice could have been given; and all such waived objections
shall thereafter constitute Permitted Exceptions under this Agreement. Purchaser
shall also have until Closing the right to re-examine title to the Property and
to give Seller written notice of any new objections appearing of record between
the effective date of Purchaser's initial title examination or the last day such
notice could have been given, as the case may be, and the Closing. Seller shall
have ten (10) days after receipt of any such objections to notify Purchaser in
writing as to whether or not Seller will cure any such objection, and if Seller
elects to cure any such objection, Seller shall satisfy or correct, at Seller's
expense, such objection on or before the date of Closing. Failure of Seller to
give such notice within such ten (10) day period shall be deemed an election not
to cure such objection. In the event Seller does not elect to satisfy or cure
any such objection of which it is timely notified, then, at the option of
Purchaser, evidenced by written notice to Seller given within five (5) days
after receipt of written notice of Seller's election, or within five (5) days
after the expiration of said 10-day period, Purchaser may, as its sole remedy,
elect either (i) not to close the transaction contemplated hereby, in which
event the Initial Deposit or the Letter of Credit, as the case may be, shall be
returned to Purchaser, and no party shall have any further rights or obligations
hereunder, except with respect to the indemnities contained herein, or (ii) to
close the transaction contemplated hereby and receive the instruments required
herein from Seller irrespective of such title objections and without reduction
of the Purchase Price (in which case such title objections shall become
Permitted Exceptions hereunder). If Purchaser does not elect to proceed under
either clause (i) or (ii), above, within said 5-day period, Purchaser shall be
deemed to have elected to proceed under clause (ii) above. The Closing Date
shall be extended if necessary to permit each party the full period of time set
forth above to exercise its rights under this subparagraph. Anything contained
in this Agreement to the contrary notwithstanding, Seller shall be obligated to
pay off at the Closing and obtain a cancellation of any security deed, any lien
placed on the Property by a contractor or subcontractor of Seller, any judgment
encumbering the Property or any Federal or State tax lien (herein referred to as
a "Monetary Encumbrance"). Purchaser shall not be required to object under this
subparagraph to any Monetary Encumbrance as a condition to Seller's obligation
to pay off and obtain a cancellation of such Monetary Encumbrance. If Seller
does not pay off any Monetary Encumbrance at Closing, Purchaser shall

                                       -3-

<PAGE>

have the right (in addition to its other rights and remedies under this
Agreement, at law or in equity) to do so, and deduct the payoff amount and the
cost of doing so from the Purchase Price.

DUE DILIGENCE INFORMATION; INSPECTION PERIOD; TESTS; PRE-CLOSING ACTIVITIES;
SURVEY

     5. a. Seller agrees to deliver to Purchaser, within three (3) business days
following the Effective Date, the following items (to the extent such items are
in Seller's possession or control): (a) copies of soil tests, engineering
reports, and environmental tests, environmental audits, environmental
assessments or environmental reports related to the Property, (b) all plans,
specifications, engineering and mechanical data relating to the Property,
including such items relating to tenant improvements, (c) copies of any title
insurance policies covering the Property and any surveys of all or any portion
of the Property, (d) true and correct copies of all authorizations issued by any
governmental authorities, including permits, authorizations, approvals and
licenses, true and correct copies of all documents and correspondence relating
to impact fee credits, if any, and the results of any inspections,
investigations, tests and studies with regard to zoning, building codes and
other governmental regulations or entitlement matters, (e) copy of operating
statements showing operating expenses for the Property for years 2003, 2004 and
2005, as well as monthly statements for the Property for 2006, and a list of the
Personal Property, (f) to the extent available to Seller, all real property and
other ad valorem tax bills and utility bills for the Property for the years 2003
and 2004 and monthly statements for 2005, including, to the extent available,
receipts for all ad valorem taxes and special assessments assessed against the
Property for the current calendar year and the three prior calendar years, and
any information regarding current assessments on the Property or notices
relative to change in valuation for ad valorem taxes, and (g) insurance
certificates for the Property evidencing the coverage required under this
Agreement (but excluding coverage relating to other properties). In addition,
during the term of this Agreement Seller shall make available to Purchaser
copies of any other non-proprietary and non-confidential information, documents
and/or materials concerning the ownership, operation, construction,
environmental condition, legal compliance, or physical condition of the Property
(including any reports or studies disclosing any material defects in the
Property or in the foundation, structural systems, roof, or the electrical,
plumbing, heating, ventilating or air conditioning systems included in the
Property) which Purchaser or Purchaser's lender may request and which are in
Seller's possession or control (at no cost to Seller); provided, however,
notwithstanding the proprietary or confidential nature of any such
documentation, Seller shall be obligated to deliver such documentation if it
relates to the condition of the Property or the subject matter of any
representation, warranty or closing condition contained in this Agreement.
During the Inspection Period, Seller shall also make available to Purchaser its
employees with knowledge of the operations and management of the Property, for
the purpose of inquiry by Purchaser with respect to any matter regarding the
physical condition and operation of the Property. If Purchaser decides not to
purchase the Property, Purchaser shall return to Seller all documents and other
information provided by Seller to Purchaser within ten (10) days following the
effective date of termination of this Agreement.

          b. Purchaser, its agents, contractors and representatives shall have
the right, from the Effective Date until the Closing Date, to go on the Property
to inspect and examine the Property, and to make soil tests, environmental
studies, as well as engineering, architectural and

                                       -4-

<PAGE>

additional inspections and studies at reasonable times; provided, however, that
Seller may condition any invasive testing, drilling, boring, or environmental
testing of the Property upon such precautions as Seller reasonably deems
advisable to protect itself and the Property. Purchaser acknowledges that Seller
will be in possession of the Property during the term of this Agreement, and as
a result Purchaser agrees that such tests, inspections and studies shall not
unreasonably interfere with Seller's possession of the Property or the operation
of Seller's business therein. Subject to the foregoing, Seller shall provide
access to all parts of the Property, including the roof and all mechanical,
boiler and engineering rooms. Purchaser shall notify Seller in advance and
coordinate with Seller the timing of any interviews with Seller's employees and
any site inspections and tests so as to minimize disruption of the operation of
the Property. Provided, however, if Purchaser is delayed more than one (1)
business day following Seller's receipt of such notice in its ability to perform
any such inspections or tests, then the Inspection Period and the original
and/or extended Closing Date shall be extended on a day-for-day basis by any
such delay. Purchaser shall obtain or cause its consultants to obtain, and shall
provide evidence to Seller of, a policy of commercial general liability
insurance, issued by an insurer reasonably satisfactory to Seller, covering
Purchaser and Seller on an occurrence basis in the amount of not less than $1
million in connection with any personal injury or property damage arising out of
any investigative activity conducted by Purchaser on the Property. Purchaser
shall pay all costs incurred in making any tests, surveys, analyses, and
investigations of the Property, shall promptly repair and restore any damage
caused by its tests and investigations, and shall indemnify and hold Seller
harmless from and against any and all liens and claims which may arise as a
result of the activities of Purchaser or Purchaser's agents, representatives, or
designees on the Property, including without limitation any and all claims for
death or injury to persons or properties arising out of or as a result of
Purchaser or Purchaser's agents, representatives, or designees going upon the
Property pursuant to the provisions of this Section or otherwise. Purchaser
agrees to keep all information relating to the Property provided to Purchaser by
Seller or obtained by Purchaser in the course of Purchaser's review and
inspection provided for herein confidential until the Closing has occurred;
provided, however, that such information may be disclosed to Purchaser's
consultants, employees, attorneys and engineers who are assisting Purchaser with
Purchaser's inspection and evaluation of the Property, to Purchaser's investors,
existing or prospective lenders and joint venture partners, and to the extent
required by subpoena by a court of competent jurisdiction or by a Governmental
Authority. If Purchaser does not close, other than as a result of Seller's
default, Purchaser shall, within ten (10) days after such termination, deliver
copies of all due diligence materials Purchaser has obtained in connection with
its inspection and examination of the Property to Seller. The terms of this
subparagraph shall survive Closing and any rescission or termination of this
Agreement.

          c. Purchaser shall have a period from the Effective Date through 11:59
p.m. on the thirtieth (30th) day following the Effective Date ("Inspection
Period") to terminate this Agreement if Purchaser determines that the Property,
any tests, studies or inspections, or any of the information provided by Seller
to Purchaser pursuant to subparagraph 5.a. above is unsatisfactory, such
determination to be made in Purchaser's sole and absolute discretion. If prior
to the end of the Inspection Period, Purchaser gives Seller and Escrow Agent
notice of termination that the Property, or any of the other items described
above, is unacceptable, in Purchaser's sole and absolute discretion, this
Agreement shall terminate, the Initial Deposit shall be returned to Purchaser
(less the sum of $100.00 which shall be paid to Seller as consideration for the
termination right granted herein) and, thereafter, none of the parties hereto
shall have any

                                       -5-

<PAGE>

further rights, duties or obligations hereunder, except with respect to the
indemnities contained herein. If Purchaser does not give a notice of
termination, this Agreement shall remain in full force and effect.

          d. Provided Purchaser does not terminate this Agreement during the
Inspection Period, Purchaser shall have the right until the Closing Date to
market the Property and, in connection therewith, Purchaser shall have the right
to exhibit the Property to prospective purchasers, lenders, investors and other
persons or entities with an interest in the Property during normal business
hours and upon reasonable advance notice to Seller, provided that Purchaser or
such other persons or entities do not interfere with Seller's possession of the
Property or the operation of its business therein.

          e. Purchaser shall have the right (but not the obligation) to obtain,
at Purchaser's expense prior to the end of the Inspection Period, a survey
("Survey") of the Property certified by a Georgia Registered Land Surveyor. The
Survey shall be sufficient to allow the Title Company to delete the general
survey exception from the Owner's Policy. In the event the Survey discloses any
matters other than the Permitted Title Exceptions to which Purchaser objects,
such matters shall be deemed to be Title Objections and the provisions of
subparagraph 4.c. above shall apply. Seller shall deliver to Purchaser at
Closing a Quitclaim Deed utilizing a legal description prepared from the Survey
(in addition to the Limited Warranty Deed conveying the property described in
EXHIBIT "A" attached hereto) if the legal description prepared from the Survey
is different from the legal description attached hereto as EXHIBIT "A".

PRORATION OF TAXES; SERVICE CONTRACTS; OTHER LIABILITIES

     6. a. All real estate ad valorem taxes, annual special charges (e.g.,
street lighting, sewer, garbage collection, etc.) for the calendar year of
Closing shall be prorated as of 11:59 p.m. on the day immediately prior to the
Closing Date. If Closing shall occur before the tax rate is fixed for the
current tax year, such taxes shall be apportioned on the basis of the tax rate
for the preceding tax year applied to the latest assessed valuation; if such
apportionment shall be incorrect based on the actual tax bill when issued, the
party receiving the excess proration shall promptly reimburse the other to
correct the malapportionment. All unpaid assessments applicable to the Property,
including those arising between the Effective Date and the Closing Date, shall
be paid at Closing by Seller, irrespective of when the same shall be due and
payable. If additional taxes are assessed or reassessed against the Property
after Closing for, or with respect to, any calendar year prior to the calendar
year of Closing, Seller shall pay all such additional taxes to the appropriate
taxing authority immediately following receipt of written demand therefor.
Purchaser shall deliver to Seller copies of all tax bills received by Purchaser
for any calendar years prior to the calendar year of Closing promptly following
receipt thereof. If Seller does not pay such taxes to the appropriate taxing
authority within ten (10) days following written demand therefor, Purchaser
shall have the right, but not the obligation, to pay the same. If Purchaser
elects to pay such taxes, Seller shall reimburse Purchaser on demand for all
amounts paid, together with interest thereon from the date of demand until paid
in full at the rate of twelve percent (12%) per annum.

          b. All operating expenses pertaining to the Property which are
incurred by Seller or which accrue prior to Closing shall remain the liabilities
of Seller; and Seller shall

                                       -6-

<PAGE>

indemnify and hold harmless Purchaser from and against any loss, cost, damage or
expenses arising from Seller's failure to pay or satisfy such liabilities.

          c. Seller shall hold harmless, indemnify and defend Purchaser from and
against any and all losses, damages, and third party claims related to any
death, bodily injury or property damage occurring on or at the Property arising
prior to the Closing Date and resulting from any cause whatsoever, except to the
extent caused by or resulting from the negligence or willful misconduct of
Purchaser, its employees, contractors, agents or representatives.

          d. The provisions of this Paragraph shall survive Closing.

DAMAGE OR DESTRUCTION

     7. a. Until the Closing is consummated, the risk of ownership and loss of
the Property shall belong to Seller. Seller shall maintain in full force and
effect all policies of insurance now in force and insuring the Property, or any
part thereof, against loss from damage or destruction thereto without any
modifications; and in the event of any material damage or destruction thereto
prior to Closing, Purchaser shall have the option to either: (i) terminate this
Agreement, in which event Purchaser shall be entitled to a return of the Initial
Deposit or the Letter of Credit, as the case may be, whereupon the parties
hereto shall have no further rights or obligations hereunder, except with
respect to the indemnities contained herein, or (ii) close this transaction, in
which event Seller shall be entitled to receive the proceeds of such casualty
insurance payable on account of such loss, damage or destruction to the extent
necessary, and subject to an obligation to use such proceeds, for repair and
restoration of the Property in accordance with the requirements of the Lease.
Any remaining casualty insurance proceeds shall be paid to or credited to
Purchaser at Closing. For avoidance of doubt, Seller (prior to Closing or, as
"Tenant" under the Lease, after the Closing) shall be responsible for payment of
any deductible amount. Notwithstanding anything to the contrary hereinabove
provided, if such loss, damage or destruction occurs prior to Closing but would
permit Seller to terminate the Lease if such loss, damage or destruction had
occurred after the Closing, then Seller shall have the right to notify Purchaser
that it will not enter into the Lease at Closing within twenty (20) days after
the occurrence of such loss, damage or destruction (and in the event Seller does
not elect to terminate the Lease, Seller shall be bound by such election after
Closing). If Seller does not notify Purchaser of Seller's election within such
20-day period, Seller shall be deemed to have elected to terminate the Lease.
Purchaser's election to terminate or not terminate shall be made within twenty
(20) days after the last to occur of (A) occurrence of such loss, damage or
destruction to the Property, or (B) Purchaser's receipt of notice of such loss,
damage or destruction to the Property; and the Closing Date shall be extended to
permit Purchaser and Seller the full 20-day period to make their respective
determinations. For purposes of this subparagraph 7.a., a "material" part of the
Property means a casualty loss that would permit Seller, as "Tenant" under the
Lease, to terminate the Lease. Anything contained in this Agreement to the
contrary notwithstanding, if Seller elects to terminate the Lease, Purchaser
shall have the right either (i) to terminate this Agreement and receive a full
refund of the Earnest Money, or (ii) to close under this Agreement without the
Lease.

          b. Seller represents and warrants to Purchaser that Seller is
presently carrying and will maintain throughout the term of this Agreement
commercial property insurance

                                       -7-

<PAGE>

covering the building, fixtures, equipment, tenant improvements and betterments
with coverage for perils insured under the ISO Causes of Loss-Special Form, with
coverage extended for the perils of flood and earthquake, in an amount equal to
full insurable replacement cost. Such insurance shall contain an agreed
valuation provision in lieu of any co-insurance clause, an ordinance and law
endorsement, and debris removal coverage. Seller shall be entitled to receive
any business interruption insurance, if any, payable in connection with losses
occurring prior to the Closing Date.

CONDEMNATION

     8. Seller hereby represents and warrants to Purchaser that Seller has no
knowledge of any action or proceeding pending, threatened or instituted for
condemnation of any part of the Property by friendly acquisition or statutory
proceeding. Seller agrees to give Purchaser prompt written notice upon learning
of any such action or proceeding prior to Closing. Upon such notification
Purchaser shall have the right, to be exercised within thirty (30) days of
receipt of the notice thereof, to terminate this Agreement in which event
Purchaser shall be entitled to receive a return of the Initial Deposit or the
Letter of Credit, as the case may be, and none of the parties hereto shall have
any further rights, duties or obligations hereunder, except with respect to the
indemnities contained herein. If Purchaser does not elect to terminate, this
Agreement shall remain in full force and effect and Seller will credit Purchaser
at Closing with any monies received by Seller by reason of such taking and
assign all of Seller's interest in and to any condemnation award or offers
relating to the Property, subject to an obligation to use such proceeds to
restore the Property in accordance with the requirements of the Lease. Upon any
notice of condemnation and Purchaser's waiver of its right to terminate this
Agreement, Purchaser shall be permitted to participate in and direct the
proceedings and any settlement related thereto as if Purchaser were a party to
the action.

REPRESENTATIONS AND WARRANTIES

     9. a. Seller hereby represents and warrants to Purchaser, as of the
Effective Date, and covenants and agrees with Purchaser, as follows:

               (1) That Seller has not entered into any contract or arrangement
     for the payment of leasing commissions or rental collection fees which will
     obligate the Purchaser after Closing to any person or entity, or which will
     or could result in the creation of a lien against the Property. Seller
     covenants and agrees that it will at Closing cash-out any leasing
     commissions or rental collection fees due or payable to any person or
     entity after Closing.

               (2) That Seller has not entered into and, other than the Lease,
     will not enter into, any lease agreement or other occupancy agreement which
     will obligate the Purchaser after Closing to any third party or which will
     survive Closing; and that Seller has not entered into any Service Contract
     which will obligate the Purchaser after Closing to any third party or which
     will survive Closing.

               (3) That Seller has not received (and has no actual knowledge of)
     any written notice or request from any insurance company or board of fire
     underwriters (or

                                       -8-

<PAGE>

     organizations exercising functions similar thereto) requesting the
     performance of any work or alterations to the Property.

               (4) That Seller has not received any written notice from any
     governmental authority or, to Seller's knowledge, any written report or
     correspondence asserting that the Property or Personal Property are in
     violation of any governmental order, regulation, statute or ordinance
     dealing with the construction, operation, safety and/or maintenance
     thereof.

               (5) That Seller has no knowledge of any lien, encumbrance,
     adverse claim, or other matter relating to the title to the Property, or
     any part thereof, which is not shown by the public records; and that Seller
     has not entered into any option to purchase, right of first refusal to
     purchase or agreement for the sale and purchase of the Property or any
     portion thereof with any person or entity, except for this Agreement, which
     has not been terminated.

               (6) That, to the best of Seller's knowledge and belief, there is
     no litigation, special assessment, claim or governmental proceeding
     pending, threatened or anticipated which would or might affect the
     Property, the title thereto or the operation thereof.

               (7) That (A) Seller has not received any summons, citation,
     directive, letter, or other written communication from any governmental
     authority indicating that hazardous substances or toxic wastes, including
     without limitation asbestos, waste oils and PCBs (collectively, "Hazardous
     Substances"), have been or are generated, used, treated, stored, released
     or disposed of, or otherwise deposited in or located on the Property in
     violation of any applicable environmental law; (B) to the best of Seller's
     knowledge, no Hazardous Substances have been generated, used, treated,
     stored, released, or disposed of, or otherwise deposited in or located on
     the Property in violation of any applicable environmental law; (C) to the
     best of Seller's knowledge, there are no underground storage tanks located
     on the Property; and (D) to the best of Seller's knowledge, Seller has not
     conducted any tests for the presence of radon on or within the Property.
     The term "Hazardous Substances" shall also mean any other substance,
     element, material or compound defined or restricted as a hazardous, toxic
     or radioactive substance, material or waste by any environmental law or
     regulation of any federal, state or local governmental entity or any
     agency, department or other subdivision thereof applicable to the Property.

               (8) That neither this Agreement nor anything provided to be done
     under this Agreement violates or will violate any contract, document,
     agreement or instrument to which Seller is a party or by which Seller or
     the Property is bound.

               (9) That Seller is a corporation duly organized, validly existing
     and in good standing under the laws of the State of Georgia, and has the
     lawful right, power and authority to sell the Property in accordance with
     the terms and conditions hereof; and that, on the Closing Date, all proper
     action (including the consent of the shareholders of Seller, if necessary)
     shall have been taken by or on behalf of Seller authorizing and

                                       -9-

<PAGE>

     approving the execution of this Agreement, the performance by Seller of its
     duties and obligations under this Agreement, and the execution and delivery
     by Seller of the documents to be executed and delivered to Purchaser on the
     Closing Date.

          b. Seller agrees to (i) notify Purchaser in writing promptly following
its becoming aware between the Effective Date and the Closing of any fact or
occurrence which would cause the representations and warranties set forth above
to become untrue, and (ii) restate the representations and warranties set forth
above at Closing (as of the Closing Date), subject to any changes in facts or
circumstances which may have occurred since the Effective Date. If prior to
Closing any fact or occurrence beyond the reasonable control of Seller makes the
representations and warranties set forth above to be untrue in any material
respect and, as a result thereof, Seller is unable to restate any of the
representations and warranties set forth above at Closing (as of the Closing
Date) in all material respects, then Purchaser shall have the right, within ten
(10) days of its being notified in writing of such fact or occurrence, as its
sole remedy, to either (i) elect to close the transaction set forth herein
without a reduction of the Purchase Price, in which event the affected
representation or warranty shall be deemed modified to the extent so changed, or
(ii) terminate this Agreement and receive a return of the Initial Deposit or the
Letter of Credit, as the case may be, in which case none of the parties hereto
shall have any further rights, duties or obligations hereunder, except with
respect to the indemnities contained herein.

          c. For purposes of this Agreement and any document delivered at
Closing, whenever the phrases "to the best of Seller's knowledge", or the
"knowledge" of Seller or words of similar import are used, they shall be deemed
to refer to the current, actual, conscious knowledge only, and not any implied,
imputed or constructive knowledge, without any independent investigation having
been made or any implied duty to investigate, of Jim Connor, the employee of
Seller with the primary responsibility for overseeing the management and
operations of the Property.

          d. Notwithstanding anything to the contrary contained herein,
Purchaser acknowledges that Purchaser shall not be entitled to rely on any
representation made by Seller in this Paragraph 9 to the extent, prior to or on
the Effective Date, Purchaser shall have or obtain actual knowledge of any
information that is contradictory to such representation or warranty. In
addition, except as otherwise specifically provided in this Agreement, Seller
shall have no liability with respect to any of the foregoing representations and
warranties or any representations and warranties made in any other document
executed and delivered by Seller to Purchaser to the extent that, prior to the
Closing, Purchaser discovers or learns of information (from whatever source,
including, without limitation as a result of Purchaser's due diligence tests,
investigations and inspections of the Property, or disclosure by Seller or
Seller's agents and employees) that contradicts any such representations and
warranties, or renders any such representations and warranties untrue or
incorrect, and Purchaser nevertheless consummates the transaction contemplated
by this Agreement.

          e. If prior to Closing Purchaser discovers or learns of a breach of
any representation or warranty of Seller which is within the control of Seller,
Purchaser shall have the right to terminate this Agreement, receive a return of
the Earnest Money and, in addition, recover from Seller all of Purchaser's
out-of-pocket expenses incurred to the date of such

                                      -10-

<PAGE>

termination (including, without limitation, Purchaser's due diligence expenses
and attorneys' fees and expenses), not to exceed a total of $250,000.00 (the
"Expense Reimbursement Cap"). Notwithstanding the foregoing, in any case where
(i) such misrepresentation or breach of any representation or warranty was
intentionally and willfully made by Seller, (ii) Seller intentionally and
willfully provides information to Purchaser pursuant to Paragraph 5.a. hereof
which to Seller's knowledge was false or misleading in any material respect, or
(iii) Seller intentionally and willfully withholds from Purchaser material
information of the type described in Paragraph 5.a. which is within Seller's
possession or control (the foregoing actions being referred to herein as
"Fraudulent Actions"), the Expense Reimbursement Cap shall not apply. The terms
of this subparagraph 9.e. shall survive termination of this Agreement.

          f. If Purchaser discovers or learns of a misrepresentation or breach
of any representation or warranty of Seller after Closing, then subject to
subparagraph 9.g. below, Purchaser shall be entitled to bring an action against
Seller for damages resulting from such misrepresentation or breach, not to
exceed $500,000.00 (the "Liability Cap") (in addition to attorneys' fees
recoverable pursuant to this Agreement, by law, or otherwise); provided,
however, in the case of a Fraudulent Action by Seller, the Liability Cap shall
not apply. The terms of this subparagraph 9.f. shall survive the Closing.

          g. The express representations and warranties made in this Agreement
shall not merge into any instrument or conveyance delivered at the Closing;
provided, however, Purchaser shall give Seller written notice (the "Action
Notice") of its intent to file any action, suit or proceeding with respect to
the truth, accuracy or completeness of such representations and warranties
within fifteen (15) months after the Closing Date, and any such action, suit or
proceeding shall be commenced, if at all, within twenty one (21) months after
the Closing Date and, if not commenced on or before such date, thereafter such
representations and warranties shall be void and of no force or effect.

          h. Purchaser acknowledges and agrees that, except as expressly
provided in this Agreement or in Seller's closing documents (as defined in
Paragraph 10), Seller has not made, does not make and specifically disclaims any
representations, warranties, promises, covenants, agreements or guaranties of
any kind or character whatsoever, whether express or implied, oral or written,
past, present or future, of, as to, concerning or with respect to (a) the
nature, quality or condition of the Property, including, without limitation, the
water, soil and geology, (b) the income to be derived from the Property, (c) the
suitability of the Property for any and all activities and uses which Purchaser
may conduct thereon, (d) the compliance of or by the Property or its operations
with any laws, rules, ordinances or regulations of any applicable governmental
authority or body, including, without limitation, environmental laws or the
Americans with Disabilities Act and any rules and regulations promulgated
thereunder or in connection therewith, (e) the habitability, merchantability or
fitness for a particular purpose of the Property, or (f) any other matter with
respect to the Property, and specifically that, except as provided herein,
Seller has not made, does not make and specifically disclaims any
representations regarding the release, disposal, or existence, in or on the
Property, of any Hazardous Substances. Purchaser further acknowledges and agrees
that, except as expressly provided in this Agreement or in Seller's closing
documents, having been given the opportunity to inspect the Property, Purchaser
is relying solely on its own investigation of the Property and not on any
information provided or to be provided by Seller. Purchaser further acknowledges

                                      -11-

<PAGE>

and agrees that any information provided or to be provided with respect to the
Property was obtained from a variety of sources and that Seller has not made any
independent investigation or verification of such information. PURCHASER FURTHER
ACKNOWLEDGES AND AGREES THAT, EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR
IN SELLER'S CLOSING DOCUMENTS, AND AS A MATERIAL INDUCEMENT TO THE EXECUTION AND
DELIVERY OF THIS AGREEMENT BY SELLER, THE SALE OF THE PROPERTY AS PROVIDED FOR
HEREIN IS MADE ON AN "AS IS, WHERE IS" CONDITION AND BASIS "WITH ALL FAULTS."
Purchaser acknowledges, represents and warrants that Purchaser is not in a
significantly disparate bargaining position with respect to Seller in connection
with the transaction contemplated by this Agreement; that Purchaser freely and
fairly agreed to this acknowledgment as part of the negotiations for the
transaction contemplated by this Agreement; that Purchaser is represented by
legal counsel in connection with this transaction and Purchaser has conferred
with such legal counsel concerning this waiver. Seller agrees that
notwithstanding the occurrence of any of the events or occurrences described
herein, Seller's obligations under the Lease shall remain unaffected and Seller
shall pay all amounts due and payable thereunder throughout the term of the
Lease, even if Seller is forced to vacate the Property as a result of any such
event or occurrence. The terms of this Paragraph 9.h. shall survive Closing
and/or termination of this Agreement.

          i. Purchaser on behalf of itself and its successors and assigns waives
its right to recover from, and forever releases and discharges, Seller, Seller's
affiliates, shareholders, beneficiaries, directors, officers, employees,
attorneys, representatives, and agents of each of them, and their respective
heirs, successors, personal representatives and assigns, from any and all
demands, claims, legal or administrative proceedings, losses, liabilities,
damages, penalties, fines, liens, judgments, costs or expenses known or unknown,
foreseen or unforeseen, that may arise on account of or in any way be connected
with (i) the physical condition of the Property, (ii) the condition of title to
the Property, (iii) the presence on, under or about the Property of any
Hazardous Substances, (iv) the Property's compliance with any applicable
federal, state or local law, rule or regulation, or (v) any other aspect of the
Property; provided, however, this release does not apply to Seller's breach of
any of the representations and warranties of Seller set forth in Paragraph 9.a.
or to any post closing obligations, covenants, representations and warranties of
Seller contained in this Agreement or the closing documents (including without
limitation the Lease) executed and delivered by Seller at the Closing, nor does
this release apply to the ability of Purchaser to exercise any of the rights and
remedies of Purchaser as set forth in this Agreement or such closing documents
as a result of such matters. The terms and provisions of this Paragraph 9.i.
shall survive Closing and/or termination of this Agreement.

CLOSING DOCUMENTS

     10. At Closing, the following documents, in addition to the other documents
called for herein, shall be executed and/or delivered:

          a. Seller and Purchaser shall each execute a closing statement showing
the Purchase Price paid and all credits, pro-rations and disbursements, and
containing such other stipulations and closing notes as may be mutually
agreeable to Purchaser and Seller.

          b. Seller shall execute and deliver to Purchaser a Limited Warranty
Deed conveying the Property to Purchaser, subject only to the Permitted
Exceptions, in recordable

                                      -12-

<PAGE>

form. Seller and Purchaser shall also sign and deliver such forms as are
necessary in connection with the payment by Seller of the Transfer Tax.

          c. Owner's Affidavit from an officer of Seller with knowledge of the
facts sworn to therein which is sufficient for the Title Company to issue the
Owner's Policy, without exception for mechanic's and materialmen's liens arising
through Seller, the rights of parties in possession (other than Seller),
unrecorded easements or encumbrances arising through Seller, or brokerage liens
arising through Seller, at its standard rates.

          d. Bill of Sale and Assignment by Seller to Purchaser for the Personal
Property, including without limitation (i) Seller's right, title and interest in
and to any existing warranties covering machinery, equipment, the roof, and roof
system, (ii) any plans and specifications relative to the Property (all
originals of such plans and specifications in Seller's possession shall be
delivered to Purchaser at Closing), (iii) any surveys of the Property, and (iv)
any drawings, permits and approvals associated with the Property.

          e. Seller shall execute and deliver to Purchaser a Certification of
Non-Foreign Status in accordance with Section 1445 of the Internal Revenue Code
of 1986, as amended, and the Regulations thereunder, as amended.

          f. Seller shall execute and deliver to Purchaser an affidavit
establishing its residency in the State of Georgia, an exemption from the
withholding requirements of the State of Georgia or an affidavit of gain
establishing the gain realized by Seller on the sale of the Property. If one of
the foregoing is not delivered then Purchaser shall withhold three percent (3%)
of the Purchase Price and remit such amount to the Georgia Department of Revenue
as required by law.

          g. Seller shall deliver to Purchaser any original Certificates of
Occupancy relating to the Property which are in Seller's possession.

          h. Seller shall deliver to Purchaser evidence that Seller is
authorized to consummate the transactions contemplated herein, the execution and
delivery of all documents required to effectuate the transactions contemplated
herein, and designating the persons who are authorized to execute and deliver
such documents on behalf of Seller, all of which shall be satisfactory to the
Title Company.

          i. Seller shall deliver to Purchaser any other affidavits or documents
agreed to be provided by Seller pursuant to Section 4(c) hereof in order to
enable the Title Company to issue its title insurance policy to Purchaser
subject only to the Permitted Exceptions.

          j. Seller and Purchaser shall execute and deliver to each other a
lease agreement in the form attached hereto as EXHIBIT "B" ("Lease").

          k. All other non-proprietary, non-confidential documentation in
Seller's custody or control relating to the Property shall be delivered by
Seller to Purchaser at Closing; provided, however, that notwithstanding the
proprietary or confidential nature of any such documentation, Seller shall be
obligated to deliver such documentation if it relates to the

                                      -13-

<PAGE>

condition of the Property or the subject matter of any representation, warranty
or closing condition contained in this Agreement.

          l. Such other documents as may be reasonably required by Purchaser or
Seller to close this transaction in accordance with the terms and conditions set
forth in this Agreement shall be executed and delivered by the other party.

CONTINUING OBLIGATIONS AND COVENANTS OF SELLER

     11. Seller covenants and agrees with Purchaser that, between the Effective
Date and the Closing Date (or until this Agreement has been terminated pursuant
to the terms hereof):

          a. Seller will keep the Property in as good repair and condition as it
exists on the Effective Date, subject to normal wear and tear and casualty or
condemnation.

          b. Seller will give prompt written notice to Purchaser of (i) any
notice or allegation of violation of any laws, ordinances, rules or regulations
with respect to the Property, (ii) any suit, judgment or other proceeding filed,
entered or threatened with respect to the Property or Seller's use or ownership
thereof, (iii) any actual or contemplated changes in the zoning of the Property
or any other requirements of which Seller becomes aware which would adversely
affect the use, ownership, or maintenance of the Property, or (iv) any other
event or condition which adversely affects the ownership, use, operation, or
maintenance of the Property of which Seller becomes aware.

          c. Seller will not enter into any lease or other agreement for the
occupancy of all or any portion of the Property, other than those leases or
other agreements that will be terminated on or before Closing.

          d. Seller will not transfer, convey, hypothecate or otherwise encumber
all or any part of the Property or any right, title or interest therein, and
shall enter into no agreement or restriction affecting the use, ownership or
operation of the Property. Seller shall not grant any option to purchase or
enter into any other agreement to sell the Property or any portion thereof with
any party while this Agreement remains in force.

          e. Seller will not remove any improvements or Personal Property from
the Property unless prior written notice is given to Purchaser and the same are
replaced with similar items of at least equal quality and utility prior to
Closing.

          f. Seller shall not intentionally take any action which would render
untrue or incorrect any of the warranties and representations made by Seller
herein.

CONDITIONS TO CLOSING

     12. a. Purchaser's obligation to close hereunder shall be conditioned upon
the following:

                                      -14-

<PAGE>

               (1) The truth and accuracy, in all material respects, on the
     Effective Date and on the Closing Date, of those matters represented and
     warranted to Purchaser under this Agreement.

               (2) The performance by Seller of all obligations herein imposed
     on Seller.

               (3) The Property will not, as of the Closing Date, be in
     violation of any governmental order, regulation, statute or ordinance
     dealing with the construction, operation, safety and/or maintenance
     thereof.

               (4) The Property will be in the same condition it is in on the
     last day of the Inspection Period, ordinary wear and tear excepted.

               (5) Receipt by Purchaser from the Title Company of a "marked"
     Commitment for Title Insurance showing that "good and marketable fee simple
     title" to the Property shall be vested in Purchaser at Closing, free and
     clear of all exceptions and matters other than the Permitted Exceptions and
     other liens and encumbrances granted by Purchaser at Closing, subject only
     to Purchaser's payment of the Purchase Price to Seller, payment of the
     Title Company's title insurance premiums and other charges, and payment of
     recording fees.

               (6) Purchaser has received a Phase I environmental report
     satisfactory to Purchaser, and a Phase II environmental report satisfactory
     to Purchaser if Purchaser deems such Phase II report necessary based on the
     results of the Phase I environmental report.

          b. In the event one or more of the foregoing conditions to Closing
have failed at Closing, Purchaser shall have the right, at its option, to
terminate this Agreement, without prejudice to any other rights or remedies
available to Purchaser under this Agreement, at law or in equity, and receive a
return of the Initial Deposit or the Letter of Credit, as the case may be. It is
acknowledged that the conditions precedent contained in this Agreement are for
the sole benefit of Purchaser, and Purchaser may, in its sole discretion
exercised by notice in writing to Seller at or before Closing, waive fulfillment
of any one or more of such conditions and close hereunder without regard to such
failure.

BROKERAGE COMMISSION

     13. a. If and when the sale and conveyance of the Property closes in
accordance with the terms and provisions hereof, Seller shall (1) pay to
Seller's Broker a real estate commission in the amount of one and one-half
percent (1.5%) of the Purchase Price, and (2) pay to Purchaser's Broker a real
estate commission in the amount of one and one-half percent (1.5%) of the
Purchase Price. Each party comprising Broker acknowledges and agrees that (i)
there shall be no claim for a commission, finder's fee or other fee of any type
arising out of the execution and delivery of this Agreement or the relationship
evidenced hereby in the event that, for any reason, the sale and conveyance
contemplated hereby does not close, and (ii) that Purchaser has no obligation to
either party comprising Broker for payment of any commission, finder's fee, or
other fee of any type, arising out of the execution and delivery of this
Agreement

                                      -15-

<PAGE>

or the sale and conveyance contemplated hereby. Each party comprising Broker
represents and warrants to Seller and Purchaser that such party either is
licensed as a real estate broker under the laws of the State of Georgia or
lawfully may receive a real estate commission under Georgia law for the
performance of brokerage services.

          b. Seller and Purchaser hereby represent and warrant, each to the
other, that, except as expressly set forth in this Paragraph, no other party is
entitled, as a result of the actions of Seller or Purchaser, as the case may be,
to a real estate commission or other fee resulting from the execution of this
Agreement or the sale and conveyance herein contemplated, and Seller and
Purchaser each hereby indemnify and hold each other harmless from and against
any and all losses, costs, damages or expenses (including attorneys' fees)
incurred or paid as a result of any such claim arising out of the actions of
Seller or Purchaser, as the case may be.

          c. Each party comprising Broker hereby represents and warrants to
Seller and Purchaser that, except as expressly set forth herein, no party is
entitled, as a result of the actions of Seller's Broker or Purchaser's Broker,
as the case may be, to a real estate commission or other fee resulting from the
execution of this Agreement or the sale and conveyance herein contemplated, and
Seller's Broker and Purchaser's Broker each hereby indemnifies and holds Seller
and Purchaser harmless from and against any and all losses, costs, damages or
expenses (including attorneys' fees) incurred or paid as a result of any claim
arising out of the actions of Seller's Broker or Purchaser's Broker, as the case
may be, with regard to any claim for a real estate commission or other fee
resulting from the execution of this Agreement or the sale and conveyance herein
contemplated.

          d. Seller's Broker and Purchaser's Broker are parties to this
Agreement solely for the purpose of acknowledging the agreements set forth in
this Paragraph. Any modification of this Agreement signed by Purchaser and
Seller shall be effective as between said parties; provided, however, no such
modification shall affect, without the written consent of Broker, the rights or
obligations of Broker under this Paragraph.

          e. Each party comprising Broker shall, at Closing, upon receipt of the
above-described real estate commission, execute and deliver to Purchaser and
Seller a lien waiver, in form and substance satisfactory to Purchaser, Seller
and the Title Company, waiving and releasing all liens and lien rights it may
then or thereafter have, including all liens and lien rights under the
Commercial Broker Lien Act, Sections 44-14-600, et seq., O.C.G.A.

          f. Seller's Broker has acted as an agent for Seller in this
transaction and has not acted as an agent for Purchaser.

          g. Purchaser's Broker has acted as an agent for Purchaser in this
transaction and has not acted as an agent for Seller.

          h. The provisions of this Paragraph shall survive Closing and any
rescission or termination of this Agreement.

                                      -16-
<PAGE>

NOTICES

     14. Any notice, demand, request or other communication required or
permitted to be given hereunder (a "notice") shall be in writing and either (i)
delivered by a commercial courier service ("Courier"), (ii) sent by U.S.
Certified or Registered Mail, return receipt requested, postage prepaid ("U.S.
Mail"), or (iii) sent by a nationally recognized overnight delivery service such
as Federal Express, UPS or a similar service ("Overnight Courier"), to the party
being given such notice at the following addresses:

     Seller:               Crawford & Company
                           5620 Glenridge Drive, N.E.
                           Atlanta, GA 30328
                           Attn: Jim Connor, Assistant Vice President
                           Telephone: (404) 497-6661
                           Facsimile: (404) 497-6665

     with a copy to        Crawford & Company
                           5620 Glenridge Drive, N.E.
                           Atlanta, GA 30328
                           Attn: Allen W. Nelson
                           Telephone: (404) 847-4550
                           Facsimile: (404) 847-4066

     and with a copy to:   Morris, Manning & Martin, LLP
                           1600 Atlanta Financial Center
                           3343 Peachtree Road
                           Atlanta, GA 30326
                           Attn: Andrew C. Williams
                           Telephone: (404) 233-7000
                           Facsimile: (404) 365-9532

     Purchaser:            Buckhead Trading & Investment Company, LLC
                           3348 Peachtree Road
                           Suite 250
                           Atlanta, GA 30326
                           Attn: Kent S. Levenson
                           Telephone: (404) 442-7888
                           Facsimile: (404) 442-7999

     with a copy to:       Marks & Williams, LLC
                           Two Midtown Plaza, Suite 1150
                           1349 West Peachtree Street
                           Atlanta, GA 30309
                           Attn: Randolph A. Marks, Esq.
                           Telephone: (404) 892-3999
                           Facsimile: (404) 892-2824

                                      -17-

<PAGE>

     Seller's Broker:      Richard Bowers & Co.
                           260 Peachtree Street, N.W.
                           Suite 2400
                           Atlanta, GA 30303
                           Attn: William R. Johnson, CCIM
                           Telephone: (404) 816-1600
                           Facsimile: (404) 880-0077

     Purchaser's Broker:   Easlan Capital of Atlanta, Inc.
                           3348 Peachtree Road
                           Suite 250
                           Atlanta, GA 30326
                           Attn: Lenny Meltz
                           Telephone: (404) 442-7888
                           Facsimile: (404) 442-7999

     Escrow Agent:         Calloway Title and Escrow, L.L.C.
                           4800 Ashford-Dunwoody Road
                           Suite 240
                           Atlanta, GA  30338
                           Attn: S. Marcus Calloway
                           Telephone: (770) 698-7960
                           Facsimile: (770) 698-7999

All notices shall be effective (and the time period in which a response to any
notice must be given, if any, shall commence to run on such effective date)
depending on the form of delivery, as follows: (i) if delivered by a Courier, on
the date of receipt, or (ii) if sent by Mail, three (3) business days after
being deposited in the United States Mail, or (iii) if sent by an Overnight
Courier, on the date of receipt. Rejection or failure to claim delivery of any
such notice, or the inability to deliver because of changed address of which no
notice was given, shall be deemed to be receipt of the notice sent as of the
date of attempted delivery by a Courier, the date of deposit in the Mail or the
date of attempted delivery by an Overnight Courier, as the case may be. By
giving at least ten (10) days written notice thereof, any party shall have the
right from time to time and at any time to change their respective addresses.

DEFAULT

     15. a. In the event the sale is not consummated as a result of a default by
Purchaser, Seller agrees to provide Purchaser with written notice of such
default. Purchaser shall have ten (10) days from the date of receipt of said
notice to cure such default. In the event Purchaser does not cure such default
within such ten-day period, Seller being ready, willing and able to perform,
Escrow Agent shall deliver the Initial Deposit or the Letter of Credit, as the
case may be to Seller and Seller shall have the right to retain the Initial
Deposit or negotiate the Letter of Credit and retain the proceeds therefrom as
full liquidated damages, whereupon none of the parties hereto shall have any
further rights, duties or obligations hereunder, except with respect to the
indemnities contained herein. It is understood and agreed that the right of
Seller to receive the Initial Deposit or the Letter of Credit and retain the
proceeds therefrom, as the case may be,

                                      -18-

<PAGE>

as liquidated damages shall be the sole and exclusive remedy to Seller in the
event the sale is not consummated as a result of a default by Purchaser.
Purchaser and Seller acknowledge and agree that it would be difficult, if not
impossible, to ascertain the actual damages suffered by Seller in the event the
sale is not consummated as a result of a default by Purchaser, that the amount
of the Initial Deposit or the Letter of Credit, as the case may be, is a
reasonable and good faith estimate of such damages, and that the Initial Deposit
or the proceeds received by Seller from the negotiation of the Letter of Credit,
as the case may be, are intended as full liquidated damages. In the event the
sale is not consummated as a result of a default by Purchaser, Seller
specifically waives the right to pursue any other remedy against Purchaser,
including the remedy of specific performance.

          b. In the event the purchase and sale of the Property does not occur
as provided herein by reason of the default of Seller in the performance of its
obligations or agreements under the terms hereof, Purchaser may elect, as the
sole and exclusive remedy of Purchaser, either (i) to terminate this Agreement,
receive the Initial Deposit or the Letter of Credit, as the case may be, from
the Escrow Agent, and recover from Seller all of Purchaser's out-of-pocket
expenses incurred to the date of such termination (including, without
limitation, Purchaser's due diligence expenses and attorneys' fees and
expenses), not to exceed the Expense Reimbursement Cap described in Paragraph
9.c., except as otherwise provided in Paragraph 9.e., or (ii) to enforce
specific performance of Seller's obligation to convey the Property and lease the
Property pursuant to the Lease, without adjustment to, or credit against, the
Purchase Price, except as otherwise set forth in this Agreement. Purchaser shall
be deemed to have elected to terminate this Agreement (as provided in subsection
(i) above) and to proceed under subsection (i) above if Purchaser fails to
deliver to Seller written notice of its intent to file a cause of action for
specific performance against Seller on or before sixty (60) days after written
notice of termination from Seller or sixty (60) days after the originally
scheduled Closing Date, whichever shall occur first, or having given Seller
notice, fails to file a lawsuit asserting such cause of action within sixty (60)
days after the originally scheduled Closing Date. In no event shall Seller be
liable to Purchaser for any punitive, speculative, or consequential damages,
except as otherwise specifically provided in this Agreement. Notwithstanding the
foregoing, in any case where the equitable remedy of specific performance is not
available due to Seller's prior conveyance of the Property to a third party,
Purchaser shall be entitled to recover from Seller, in addition to Purchaser's
out-of-pocket expenses (without regard to the Expense Reimbursement Cap), the
greater of (i) $500,000.00 or (ii) 150% of the difference between the amount
received by Seller in connection with such third party sale (whether received
directly or indirectly) and the net purchase price payable to Seller under the
terms of this Agreement (the greater of clause [i] or clause [ii] being herein
referred to as the "Purchaser's Damage Recovery"). Purchaser and Seller
acknowledge and agree that it would be difficult, if not impossible, to
ascertain the actual damages suffered by Purchaser in the event of a prior
conveyance by Seller of the Property to a third party, that the amount of
Purchaser's Damage Recovery is a reasonable and good faith estimate of such
damages, and that Purchaser's Damage Recovery is intended as full liquidated
damages.

          c. In the event any of the parties to this Agreement is required to
enforce the provisions of this Agreement, such party, if it prevails, shall be
entitled to receive from the other party all costs and expenses, including,
without limitation, reasonable attorney's fees incurred, at trial and on appeal,
in connection with such enforcement.

                                      -19-

<PAGE>

ASSIGNMENT

     16. Purchaser shall be entitled to assign its right, title and interest
herein to any corporation, partnership, limited liability company, or other
entity controlled by or under common control with Purchaser. Any other
assignment by Purchaser shall be made only with the prior written consent of
Seller, which consent may be withheld for any reason or for no reason. Any
approved assignee shall expressly assume all of Purchaser's duties, obligations,
and liabilities hereunder, and a copy of such assignment and assumption shall be
provided with reasonable promptness to Seller. In the event of any such
permitted assignment, the Purchaser named in this Agreement shall remain
obligated for all of the obligations and liabilities of Purchaser to Seller
arising under this Agreement.

SURVIVAL OF AGREEMENT

     17. Except as specifically provided in this Agreement, this Agreement shall
not survive the Closing.

ENTIRE AGREEMENT; MODIFICATION

     18. This Agreement constitutes the entire agreement between the parties
hereto and it is understood and agreed that all undertakings and agreements
heretofore had between these parties are merged herein and superseded hereby. No
representation, promise or inducement not included herein shall be binding upon
any party hereto. This Agreement may not be changed orally, but only by an
agreement in writing signed by the parties hereto.

SUCCESSORS AND ASSIGNS

     19. Subject to the terms of Paragraph 16 above, the provisions of this
Agreement shall inure to the benefit of and shall be binding upon the parties
hereto and their respective successors and assigns.

COUNTERPARTS

     20. This Agreement may be executed in separate counterparts. It shall be
fully executed when each party whose signature is required has signed at least
one counterpart even though no one counterpart contains the signatures of all
the parties.

NO WAIVER

     21. Failure of either party to insist upon compliance with any provision
hereof shall not constitute a waiver of the rights of such party to subsequently
insist upon compliance with that provision or any other provision of this
Agreement.

CONSTRUCTION OF AGREEMENT; GOVERNING LAW; SEVERABILITY; CAPTIONS

     22. Purchaser and Seller acknowledge that they have read, understand and
have had the opportunity to be advised by legal counsel as to each and every one
of the terms, conditions,

                                      -20-

<PAGE>

and restrictions, and as to the effect of all the provisions, of this Agreement.
Should any provision of this Agreement require judicial interpretation, it is
agreed that the court interpreting or construing the provisions shall not apply
a presumption that the terms hereof shall be more strictly construed against one
party by reason of the rule of construction that a document is to be construed
more strictly against the party who itself or through its agent prepared the
document. Typewritten or handwritten provisions inserted in this Agreement which
are initialed by the parties shall control over all printed provisions of this
Agreement in conflict therewith. The word "day," as used in this Lease, shall
mean calendar day, unless "business day" is specifically used. This Agreement
shall be governed by and construed in accordance with the laws of the State of
Georgia. The provisions of this Agreement are intended to be independent, and in
the event any provisions hereof should be declared by a court of competent
jurisdiction to be invalid, illegal, or unenforceable for any reason whatsoever,
such illegality, unenforceability, or invalidity shall not affect the remainder
of this Agreement. Titles or captions of Paragraphs contained in this Agreement
are inserted only as a matter of convenience and for reference and in no way
define, limit, extend or describe the scope of this Agreement or the intent of
any provision hereof.

MISCELLANEOUS

     23. a. Time is of the essence of this Agreement; provided, however, if the
time period by which any right, option or election provided under this Agreement
must be exercised, or by which any act required hereunder must be performed, or
by which Closing must be held, expires on a Saturday, Sunday or legal holiday,
then such time period shall be automatically extended through the close of
business on the next regular business day. For the purposes hereof, a "business
day" shall be deemed to be any day that is not a Saturday, Sunday or legal
holiday.

          b. Neither this Agreement nor a memorandum hereof may be recorded. Any
such recording of this Agreement or memorandum hereof shall constitute a default
under this Agreement and Seller may cause the release or removal of any such
recording simply by recording an affidavit including this release provision.
Provided, however, that notwithstanding the provisions of this subparagraph b,
in the event Purchaser pursues the equitable remedy of specific performance,
Purchaser shall have the right to file a lis pendens notice in connection
therewith.

AUTHORITY OF SIGNATORIES

     24. Each individual or entity executing this Agreement in any
representative capacity warrants that such individual or entity is authorized to
execute this Agreement on behalf of the person or entity on whose behalf such
person or entity is shown to be acting.

OFFER AND ACCEPTANCE

     25. This Agreement has been executed first by Purchaser and shall be deemed
a continuing offer by said party to purchase, until the fifth (5th) day
following the execution of this Agreement by Purchaser. If an executed and
unaltered acceptance hereof is not returned to the address noted herein of
Purchaser by said time, such offer shall be deemed withdrawn. The date

                                      -21-

<PAGE>

of last execution and acceptance hereof by Purchaser or Seller, as the case may
be is herein referred to as the "Effective Date." Upon full execution of this
Agreement, the parties shall have the right to fill in the Effective Date on the
first (1st) page hereof.

                                      -22-
<PAGE>

                           COUNTERPART SIGNATURE PAGE
                                       FOR
                           PURCHASE AND SALE AGREEMENT
                              BY, BETWEEN AND AMONG
                         CRAWFORD & COMPANY, AS SELLER,
            BUCKHEAD TRADING & INVESTMENT COMPANY, LLC, AS PURCHASER,
                    RICHARD BOWERS & CO., AS SELLER'S BROKER,
             EASLAN CAPITAL OF ATLANTA, INC., AS PURCHASER'S BROKER,
                                       AND
               CALLOWAY TITLE AND ESCROW, L.L.C., AS ESCROW AGENT

     IN WITNESS WHEREOF, the undersigned has executed, sealed and delivered this
Contract as of the date set forth below.

SELLER:

CRAWFORD & COMPANY

By: /s/ Thomas W. Crawford
    ---------------------------------
Name: Thomas W. Crawford
Title: President

Attest: /s/ Allen W. Nelson
        -----------------------------
Name: Allen W. Nelson
Title: SVP - General Counsel & Corp.
       Sec.

           [CORPORATE SEAL]

Date of Execution: 21 March 2006

                                      -23-

<PAGE>

                           COUNTERPART SIGNATURE PAGE
                                       FOR
                           PURCHASE AND SALE AGREEMENT
                              BY, BETWEEN AND AMONG
                         CRAWFORD & COMPANY, AS SELLER,
            BUCKHEAD TRADING & INVESTMENT COMPANY, LLC, AS PURCHASER,
                    RICHARD BOWERS & CO., AS SELLER'S BROKER,
             EASLAN CAPITAL OF ATLANTA, INC., AS PURCHASER'S BROKER,
                                       AND
               CALLOWAY TITLE AND ESCROW, L.L.C., AS ESCROW AGENT

     IN WITNESS WHEREOF, the undersigned has executed, sealed and delivered this
Contract as of the date set forth below.

PURCHASER:

BUCKHEAD TRADING & INVESTMENT
COMPANY, LLC

By: /s/ Kent S. Levenson
    ---------------------------------
Kent S. Levenson, Manager

Date of Execution: 3/22/06

                                      -24-

<PAGE>

                           COUNTERPART SIGNATURE PAGE
                                       FOR
                           PURCHASE AND SALE AGREEMENT
                              BY, BETWEEN AND AMONG
                         CRAWFORD & COMPANY, AS SELLER,
            BUCKHEAD TRADING & INVESTMENT COMPANY, LLC, AS PURCHASER,
                    RICHARD BOWERS & CO., AS SELLER'S BROKER,
             EASLAN CAPITAL OF ATLANTA, INC., AS PURCHASER'S BROKER,
                                       AND
               CALLOWAY TITLE AND ESCROW, L.L.C., AS ESCROW AGENT

     IN WITNESS WHEREOF, the undersigned has executed, sealed and delivered this
Contract as of the date set forth below.

SELLER'S BROKER:

RICHARD BOWERS & CO.

By: /s/ William R. Johnson
    ---------------------------------
Name: William R. Johnson
Title: Vice President

Date of Execution: 03/22/06

                                      -25-

<PAGE>

                           COUNTERPART SIGNATURE PAGE
                                       FOR
                           PURCHASE AND SALE AGREEMENT
                              BY, BETWEEN AND AMONG
                         CRAWFORD & COMPANY, AS SELLER,
            BUCKHEAD TRADING & INVESTMENT COMPANY, LLC, AS PURCHASER,
                    RICHARD BOWERS & CO., AS SELLER'S BROKER,
             EASLAN CAPITAL OF ATLANTA, INC., AS PURCHASER'S BROKER,
                                       AND
               CALLOWAY TITLE AND ESCROW, L.L.C., AS ESCROW AGENT

     IN WITNESS WHEREOF, the undersigned has executed, sealed and delivered this
Contract as of the date set forth below.

PURCHASER'S BROKER:

EASLAN CAPITAL OF ATLANTA, INC.

By: /s/ Leonard Meltz
    ---------------------------------
Name: Leonard Meltz
Title: V. P.

Date of Execution: 3/22/06

                                      -26-

<PAGE>

                           COUNTERPART SIGNATURE PAGE
                                       FOR
                           PURCHASE AND SALE AGREEMENT
                              BY, BETWEEN AND AMONG
                         CRAWFORD & COMPANY, AS SELLER,
            BUCKHEAD TRADING & INVESTMENT COMPANY, LLC, AS PURCHASER,
                    RICHARD BOWERS & CO., AS SELLER'S BROKER,
             EASLAN CAPITAL OF ATLANTA, INC., AS PURCHASER'S BROKER,
                                       AND
               CALLOWAY TITLE AND ESCROW, L.L.C., AS ESCROW AGENT

     IN WITNESS WHEREOF, the undersigned has executed, sealed and delivered this
Contract as of the date set forth below.

ESCROW AGENT:

CALLOWAY TITLE AND ESCROW, L.L.C.

By:
    ---------------------------------
    S. Marcus Calloway, Manager

Date of Execution:
                   ------------------

                                      -27-

<PAGE>

                              SPECIAL STIPULATIONS

                         TO BE ATTACHED BY ESCROW AGENT

                                      -28-

<PAGE>

                                   EXHIBIT "A"

                          LEGAL DESCRIPTION OF PROPERTY

All that tract or parcel of land lying and being in Land Lot 38, of the 17th
District, of Fulton County, Georgia, being more particularly described as
follows:

Beginning at the point of intersection of the northwest right-of-way of
Glenridge Drive with the Southern right-of-way of Interstate No. 285, at a
concrete right-of-way marker, said point described being the point of beginning.

Thence S27 degrees 05'W a distance of 78.26 feet along the right-of-way of
Glenridge Drive, thence continuing along said right-of-way S38 degrees 46' W a
distance of 155.99 feet to a point, thence S45 degrees 20'W a distance of 336.35
feet to a point, thence S57 degrees 53'W a distance of 97.76 feet to a point,
thence S71 degrees 59'W a distance of 161.64 feet to a point, thence leaving
said right-of-way N24 degrees 30'07"W a distance of 425.20 feet to a point,
thence N16 degrees 12'49"E a distance of 364.15 feet to a point, to the southern
right-of-way of Interstate No. 285, thence continuing along said right-of-way
S81 degrees 24'E a distance of 398.58 feet to a concrete marker; thence N78
degrees 45'E a distance of 242.78 feet to a concrete marker; thence S14 degrees
49'E a distance of 201.32 feet to the point of beginning. Said tract described
as shown on a plat for Crawford and Company dated September 16, 1975, last
revised November 3, 1975 by Mayes, Sudderth and Etheredge, Inc.; and contains
8.75 acres.

Less and except those portions of the above described property taken in
connection with the relocation/expansion of the right-of-way of Glenridge Drive.

                                    Exhibit A

<PAGE>

                                   EXHIBIT "B"

STATE OF GEORGIA

COUNTY OF FULTON

                           TRIPLE-NET LEASE AGREEMENT

     THIS LEASE AGREEMENT, made as of the ____ day of __________, 2006
("Effective Date"), by and between __________________________ ("Landlord"), and
CRAWFORD & COMPANY, a Georgia corporation ("Tenant"). The "Effective Date" is
the date that this Lease has been fully executed by Landlord and Tenant, and the
parties shall enter the Effective Date above.

                                   WITNESSETH:

     1. Premises. Landlord does hereby rent and lease to Tenant, and Tenant does
hereby rent and hire from Landlord, that certain real property being more
particularly described on Exhibit "A," attached hereto and by this reference
made a part hereof and all buildings, structures, parking areas, and other
improvements of every nature, character and designation located thereon
(collectively, the "Premises"), subject to all taxes and assessments, all
matters of record and all matters that would be shown by an accurate survey and
inspection of said real property. No easement for light or air is included in
the Premises.

     2. Lease Term. The term of this Lease shall commence on the Effective Date
and shall expire, unless sooner terminated as herein provided, on the last day
of the twelfth (12th) full calendar month following the Effective Date (herein
referred to as the "term of this Lease"). Tenant shall have the right, at any
time after the one hundred eightieth (180th) day of the term of this Lease to
give notice to Landlord terminating this Lease (a "Termination Notice"). Tenant
shall specify the effective date of termination in the Termination Notice, which
must be at least ninety (90) days after the date of such notice. Anything
contained in this Lease to the contrary notwithstanding, Tenant shall remain
liable for the performance of all liabilities and obligations of Tenant
hereunder that arose or accrued prior to the effective date of termination,
whether such liability or obligation was then due and payable.

     3. Base Rent. Commencing on the Effective Date, and continuing throughout
the term of this Lease, Tenant shall pay to Landlord at Landlord's office, or
such other place as Landlord shall from time to time designate in writing, a
monthly rental of $100,000.00 ("Base Rent"), to be paid without notice, demand,
deduction, or set-off, on the first (1st) day of each month in advance. Rental
payments not received by Landlord within five (5) days of the due date thereof
shall be subject to a late charge due and payable by Tenant to Landlord on the
sixth (6th) day after the due date thereof in an amount equal to five (5%)
percent of such past due rental. All rent overdue for more than sixty (60) days
shall bear interest at the rate of twelve percent (12%) per annum ("Default Rate
of Interest") until paid in full. All payments on account of overdue rent shall
be applied in such order as Landlord may determine. The term "Additional

                                    Exhibit B

<PAGE>

Rent" as used herein shall mean all sums other than Base Rent payable by Tenant
to Landlord under this Lease. The term "rent" or "rental" shall mean all Base
Rent and Additional Rent due and payable hereunder by Tenant to Landlord. Base
Rent and Additional Rent shall be prorated for any partial month at the
beginning or end of the term of this Lease.

     4. Taxes and Assessments. Commencing on the Effective Date and continuing
thereafter throughout the term of this Lease, Tenant shall, in equal monthly
installments with the Base Rent, pay to Landlord as Additional Rent one-twelfth
(1/12) of the estimated "taxes and assessments" for the then current calendar
year. The term "taxes and assessments" shall include every type of tax, charge,
or imposition now or hereafter assessed against the Premises, including, but not
limited to, ad valorem taxes, special assessments, and governmental charges
excepting only income taxes imposed upon Landlord; the term "taxes and
assessments" shall include any tax levied or imposed upon or assessed against
the rent reserved or payable hereunder or income arising herefrom to the extent
the same is in lieu of or a substitute for any of the taxes and assessments
hereinabove described. The initial monthly payment shall be based on the "taxes
and assessments" for the calendar year during which the term of this Lease
commences (or, if bills for such year have not yet been issued, shall be
estimated by Landlord based on the most recent millage rate and assessment of
the Property). On or about January 1 of each calendar year during the term of
this Lease, Landlord shall estimate the amount of "taxes and assessments" for
the new calendar year and shall deliver to Tenant a statement of such amount.
Subsequent installments shall be the new monthly amount until adjusted pursuant
to this subparagraph; and Tenant shall deliver to Landlord with the next regular
payment of Base Rent, along with the new monthly amount, the total amount of the
monthly increase for each installment which had already come due for the new
calendar year. In the event that Landlord does not deliver a new notice for any
particular calendar year, Tenant shall continue to pay the amount it paid for
the previous calendar year until adjusted. Promptly following receipt of tax
bills, Landlord shall notify Tenant of the actual amount of "taxes and
assessments" payable by Tenant hereunder and any adjustment necessary shall be
made to the Additional Rent payments next coming due under this subparagraph (or
by cash payments if the reconciliation is not made until after the expiration or
termination of this Lease). All amounts payable hereunder shall be prorated for
any partial calendar year during the term of this Lease. Landlord shall provide
Tenant with a copy of any bills for "taxes and assessments" for any calendar
year during the term of this Lease within thirty (30) days following written
request. The provisions of this Paragraph shall survive the expiration or
termination of this Lease until all amounts due and payable hereunder have been
paid in full.

     5. Insurance. Tenant shall carry and maintain, at its sole expense, during
the term of this Lease, the following insurance, in the amounts specified below,
with insurance companies and on forms satisfactory to Landlord and the holder of
any security deed now or hereafter encumbering the Premises ("Landlord's
Lender"): (i) commercial property insurance covering the building, fixtures,
equipment, tenant improvements and betterments, and personal property owned by
Landlord and used in connection with the operation of the Property, with
coverage for perils insured under the ISO Causes of Loss-Special Form, with
coverage extended for the perils of flood and earthquake, in an amount equal to
full insurable replacement cost; such insurance shall contain an agreed
valuation provision (which amount is satisfactory to Landlord) in lieu of any
co-insurance clause, an ordinance and law endorsement, debris removal coverage,
a waiver of subrogation endorsement in favor of Landlord, and rental insurance
in favor of Landlord in the

                                       -2-

<PAGE>

amount of all rent payable under this Lease for nine (9) months; and said
insurance policy shall, unless otherwise provided herein, name Landlord and
Landlord's Lender as additional insureds, as their interests may appear; (ii)
Commercial General Liability Insurance, including Contractual Liability
Insurance coverage, covering Tenant's operations in the Premises, in the minimum
amount of $3,000,000.00 combined single limit, on an occurrence basis; and (iii)
worker's compensation insurance insuring against and satisfying Tenant's
obligations and liabilities under the worker's compensation laws of the state in
which the Premises are located. All policies of liability insurance which Tenant
is obligated to maintain according to this Lease (other than any policy of
worker's compensation insurance) will name Landlord and Landlord's Lender as
additional insureds, with respect to the Premises. If Tenant's liability
policies do not contain the standard ISO separation of insureds provision, or a
substantially similar clause, they shall be endorsed to provide cross-liability
coverage. On the Effective Date, Tenant shall furnish Landlord with a
certificate(s) of insurance, executed by a duly authorized representative of
each insurer, showing compliance with the insurance requirements set forth
above. All certificates shall provide for 30 days' written notice to Landlord
prior to the cancellation (or material change) of any insurance referred to
therein. The words "endeavor to" and "but failure to mail such notice shall
impose no obligation or liability of any kind upon the company, its agents or
representatives" shall be deleted from the certificate form's cancellation
provision. Tenant shall provide certified copies of all insurance policies
required above within 10 days of Landlord's written request for said copies. All
policies maintained by Tenant will be written as primary policies, not
contributing with and not supplemental to the coverage that Landlord may carry.

     6. Intentionally Deleted.

     7. Utilities. Tenant shall pay all charges for utilities and other services
furnished to the Premises during the term of this Lease on or before the due
date thereof. Such charges shall be prorated between Landlord and Tenant on an
accrual basis upon expiration of the term of this Lease. To the extent possible,
Landlord and Tenant shall obtain meter readings as of the last day of the term
of this Lease to aid in such prorations. The provisions of this Paragraph shall
survive the expiration or termination of this Lease until all amounts due and
payable hereunder have been paid in full.

     8. Use. The Premises may be used for general office purposes and related
ancillary uses, including but not limited to conference and computer facilities,
training facilities, a cafeteria and dining area (including related kitchen
facilities), and other legally acceptable general office and administrative uses
for which the Premises have been used by Tenant prior to the date of this Lease,
and for no other purpose; Tenant's use shall comply with all applicable zoning
laws, rules and regulations and any private, recorded restrictions which apply
to the Premises. The Premises shall not be used for any illegal purposes; nor in
violation of any regulation of any governmental body; nor in any manner to
create any nuisance or trespass.

     9. Repairs and Maintenance by Landlord. Landlord shall not be obligated to
make any repairs or replacements or maintain the Premises during the term of
this Lease. Notwithstanding the foregoing, in the event that capital repairs or
replacements to the building structure or systems of the Premises are required
during the term of the Lease but Tenant does

                                       -3-

<PAGE>

not elect to make such repairs and replacements pursuant to Paragraph 10 below,
Landlord may, at its option, elect to make such repairs or replacements. In such
event, Tenant shall reimburse to Landlord, on a monthly basis as Additional Rent
hereunder, Tenant's allocable share of the costs of such capital repairs and
replacements, such share to be determined by multiplying the costs of such
repairs or replacements by a fraction, the numerator of which shall be the
number of full calendar months remaining in the term of this Lease at the time
of completion of such capital repair or replacement and the denominator of which
shall be the useful life of such item(s), in months, based on generally accepted
accounting principles. Tenant's allocable share of such costs shall be paid in
equal monthly installments along with payments of Base Rent for the remainder of
the term of the Lease. Landlord shall provide Tenant with copies of invoices and
other reasonably detailed back up information evidencing the cost of any such
capital repair or replacement as and when such costs are incurred.

     10. Repairs and Maintenance by Tenant. Tenant covenants and agrees, at its
sole cost, risk, expense and liability, keep and maintain the non-structural
portions of the Premises, including all improvements, equipment, fixtures and
systems located therein or affixed thereto, in good, clean, and safe repair and
condition, as necessary in order for Tenant to continue to conduct its business
in the Premises, normal wear and tear and casualty and condemnation excepted.
Notwithstanding the foregoing, Tenant may, but shall have no obligation to
(subject, however, to Section 33 hereof), make any necessary or advisable
capital repairs or replacements during the term of this Lease to the roof,
foundation, floor/ceiling slabs, curtain walls, exterior glass, columns, beams,
shafts (including elevator shafts) or other structural portions of the building,
or to the building's plumbing, fire sprinkler, heating, ventilation, and air
conditioning systems, and electrical and mechanical lines and equipment
associated therewith, or the building parking areas.

     11. Landlord's Work. Landlord shall have no obligation to improve, repair
or replace the Premises. By its execution of this Lease, Tenant accepts the
Premises in an AS-IS, WHERE-IS condition, with all faults, known or unknown.

     12. Right of Entry; Landlord's Activities.

          (a) Landlord, its agents contractors and representatives shall have
the right, but not the obligation, to enter the Premises at reasonable times to
inspect the Premises to see that Tenant is complying with all Tenant's
obligations hereunder, and to inspect and examine the Premises, and make soil
tests, environmental studies, as well as engineering, architectural and
additional inspections and studies. Landlord agrees that such tests, inspections
and studies shall not unreasonably interfere with Tenant's possession of the
Premises or the operation of Tenant's business therein. Subject to the
foregoing, Tenant shall provide access to all parts of the Premises, including
the roof and all mechanical, boiler and engineering rooms. Landlord hereby
covenants and agrees to indemnify and hold Tenant harmless from any claims
arising out of the exercise by Landlord of Landlord's rights under this
subparagraph. The terms of this subparagraph shall survive the expiration or
termination of this Lease.

          (b) Landlord shall have the right during the term of this Lease to
market the Premises and, in connection therewith, post signs on the Premises for
such purposes so long as such signs do not interfere with Tenant's operations or
obstruct Tenant's signage, and to exhibit

                                       -4-

<PAGE>

the Premises to prospective purchasers, tenants, lenders, investors and other
persons or entities with an interest in the Premises, provided that Landlord or
such other persons or entities do not interfere with Tenant's possession of the
Premises or the operation of its business therein.

          (c) Landlord shall have the right to take such actions and file such
applications as are necessary to rezone the Premises to such category as
Landlord may determine to be appropriate, such determination to be made in
Landlord's sole and absolute discretion. Tenant covenants and agrees with
Landlord that Tenant shall cooperate with Landlord and sign all rezoning
applications or consents prepared by Landlord for such purpose, provided that no
such rezoning shall affect Tenant's right to continue to occupy the Premises
during the term of this Lease or to operate its business in the same way it was
operated prior to the Effective Date.

     13. Landlord's Right to Act for Tenant. From and after the occurrence of an
Event of Default, Landlord may, without waiving or releasing Tenant from any
duty, obligation or liability under this Lease, take any such action required of
Tenant. Landlord may pay all incidental costs and expenses incurred in
exercising its rights hereunder, including, without limitation, reasonable
attorneys' fees and expenses, penalties, re-instatement fees, late charges and
interest, provided that all such payments, expenses, costs and fees shall be
reasonable in amount and shall be contracted for and paid by Landlord in a
commercially reasonable manner. All amounts paid by Landlord pursuant to this
Paragraph, and all costs and expenses incurred by Landlord in exercising
Landlord's rights under this Paragraph, shall bear interest at the Default Rate
of Interest, from the date of payment by Landlord and shall be payable by Tenant
to Landlord within ten (10) days following written demand.

     14. Default.

          (a) Each of the following events shall constitute an "Event of
Default" by Tenant under this Lease:

               (1) if, after written notice to Tenant that rent has not been
received when due, Tenant shall fail to cure such failure within five (5) days;
or

               (2) if Tenant shall violate or breach, or shall fail fully and
completely to observe, keep, satisfy, perform and comply with, any agreement,
term, covenant, condition, requirement, restriction or provision of this Lease
(other than the payment of rent or any other payment to be made by Tenant) and
shall not cure such failure within thirty (30) days after Landlord gives Tenant
written notice thereof (or if such failure cannot reasonably be cured within
thirty (30) days, if Tenant shall fail to commence such steps as are reasonably
necessary to cure such failure and shall thereafter fail to diligently and
continuously pursue such cure); or

               (3) if any petition is filed by or against Tenant under any
Section or Chapter of the Federal Bankruptcy Code, and in the case of a petition
filed against Tenant, such petition is not dismissed within sixty (60) days of
such filing; or if Tenant becomes insolvent or transfers property in fraud of
creditors; or if Tenant makes an assignment for the benefit of creditors; or if
a receiver is appointed for any of Tenant's assets.

          (b) Upon the occurrence of any Event of Default, Landlord may pursue
any one or more of the following remedies, in addition to any other remedies
provided under this

                                       -5-

<PAGE>

Lease, at law or in equity, separately or concurrently or in any combination,
without any further notice or demand whatsoever (except as specifically provided
herein) and without prejudice to any other remedy which it may have for
possession of the Premises or for arrearages in rent or other amounts payable by
Tenant:

               (1) Landlord may terminate this Lease by giving Tenant written
notice of termination, in which event Tenant shall immediately quit and vacate
the Premises and deliver and surrender possession of the Premises to Landlord,
and this Lease shall be terminated at the time designated by Landlord in its
notice of termination to Tenant; provided, however, that no termination of this
Lease prior to the normal expiration hereof shall affect Landlord's right to
collect rent for the period prior to termination; or

               (2) With or without terminating this Lease, Landlord may enter
upon and take possession of the Premises; or

               (3) Landlord may re-let the Premises or any part thereof, on such
terms and conditions as Landlord may deem satisfactory, and receive the rent for
any such re-letting, in which event Tenant shall pay to Landlord on demand any
deficiency that may arise by reason of such re-letting; provided, however, that
the maximum aggregate liability of Tenant for Base Rent accruing after the date
Landlord takes possession of the Premises or re-lets the Premises shall under no
circumstances whatsoever exceed $300,000.00 (i.e. 90 days of Base Rent
hereunder); and provided that Tenant shall in no event have any liability for
costs and expenses incurred by Landlord in renovating or altering the Premises
to make it suitable for re-letting; or

               (4) Landlord may institute a suit for unpaid rent.

          (c) Landlord's pursuit of any one or more of the remedies provided in
this Lease shall not constitute an election of remedies excluding the election
of another remedy or other remedies, or a forfeiture or waiver of any rent or
other amounts payable under this Lease by Tenant or of any damages or other sums
accruing to Landlord by reason of Tenant's violation of any provision of this
Lease. No action taken by or on behalf of Landlord shall be construed to mean
acceptance of a surrender of this Lease. No failure of Landlord to pursue or
exercise any of Landlord's powers, rights or remedies or to insist upon strict
and exact compliance by Tenant with any provision of this Lease, and no custom
or practice at variance with the terms of this Lease, shall constitute a waiver
by Landlord of the right to demand strict and exact compliance with the terms
and conditions of this Lease. Landlord shall have no duty to mitigate its
damages following the occurrence of an Event of Default.

     15. Tenant's Personal Property. Landlord and Tenant hereby acknowledge and
agree that during the term of this Lease Tenant will have within the Premises,
or will cause to be placed upon Premises, certain furniture (including employee
workstations), office equipment, computers, fixtures, office supplies and other
personal property used in the operation of Tenant's business and owned or leased
by Tenant (collectively, "Tenant's Personal Property"). Landlord does hereby
acknowledge and agree that Tenant's Personal Property shall be and remain the
sole property of Tenant or any lessor or mortgagee of Tenant's Personal Property
and shall be and remain personal property, that Tenant's Personal Property shall
not at any time be deemed a part

                                       -6-

<PAGE>

of the realty and that Tenant's Personal Property may be removed from the
Premises by Tenant or its equipment lessor or mortgagee at any time before or
upon the expiration or other termination of this Lease. Tenant shall be
responsible for the cost of Landlord to repair any damage to the Premises
occasioned by such removal. If Tenant shall not remove all Tenant's Personal
Property from the Premises at any expiration or other termination of this Lease,
Landlord shall have the right, at Landlord's election, to remove all or part of
Tenant's Personal Property in any manner that Landlord shall choose and store,
demolish, destroy or otherwise dispose of the same without liability to Tenant
for loss thereof, and Tenant shall be liable to Landlord for all expenses
incurred in such removal, demolition, destruction or disposal of Tenant's
Personal Property and also for the cost of storage of the same, if Landlord
elects to store such items. Prior to any such removal, demolition, destruction
or disposal of Tenant's Personal Property, Landlord shall provide Tenant fifteen
(15) days notice to pick up any of Tenant's Personal Property remaining within
the Premises. Tenant's Personal Property shall not include any equipment,
fixtures, appliances, machinery or other personal property that is used in
connection with the operation of building improvements located on the Premises,
as distinguished from being used by Tenant in connection with the operation of
its business upon the Premises; nor shall Tenant's Personal Property include any
such items that were assigned or conveyed to Landlord in connection with
Landlord's acquisition of the Premises. The provisions of this Paragraph shall
survive the expiration or termination of this Lease.

     16. Rights Cumulative. Except as otherwise expressly provided herein, all
rights, remedies, powers and privileges conferred under this Lease on Landlord
shall be cumulative of and in addition to, but not restrictive of or in lieu of,
those conferred by law.

     17. Liens. Tenant hereby indemnifies Landlord against, and shall keep all
portions of the Premises free from liens for any work performed, material
furnished or obligations incurred by Tenant. Should any liens or claims be filed
against all or any portion of the Premises by reason of Tenant's acts or
omissions, Tenant shall cause same to be discharged by bond or otherwise within
thirty (30) days following notice thereof. If Tenant fails to cause any such
lien or claim to be discharged within the required time, Landlord may cause same
to be discharged and may make any payment that Landlord, in its reasonable
judgment, considers necessary, desirable or proper in order to do so. All
amounts paid by Landlord shall bear interest at the Default Rate of Interest
from the date of payment by Landlord and shall be payable by Tenant to Landlord
upon written demand. The provisions of this Paragraph shall survive the
expiration or termination of this Lease.

     18. Improvements to the Premises. Tenant may not make any alterations to
the Premises without Landlord's prior written consent, other than repainting,
wallpaper, carpeting and other items of a similar nature.

     19. Subletting and Assignment. Tenant shall not have the right to assign
this Lease or sublet the Premises or any portion thereof without Landlord's
prior written consent, which may be withheld in Landlord's sole and absolute
discretion. Notwithstanding any permitted assignment or subletting, Tenant shall
remain liable for the full and complete performance, satisfaction and compliance
with each and every agreement, term, covenant, condition, requirement, provision
and restriction of this Lease, as principal and not as surety or guarantor, as
if no such assignment or subletting had been made.

                                       -7-
<PAGE>

     20. Damage or Destruction.

          (a) If the Premises or any portion thereof are destroyed by storm,
fire, lightning, earthquake or other casualty (collectively, "Casualty"), Tenant
shall immediately notify Landlord. In the event more than twenty percent (20%)
of the useable area of the Premises is rendered untenantable as a result of the
Casualty, or in the event that it will not be possible for Tenant to fully
repair and restore the Premises prior to the expiration of the term of this
Lease, Tenant shall have the right within thirty (30) days following the
Casualty, to terminate this Lease, in which case all insurance proceeds paid or
payable as a result of the Casualty less and except the amount actually expended
by Tenant in clearing the damage and destruction shall be paid or assigned to
Landlord, and all rent and other sums payable by Tenant hereunder shall be
accounted for as between Landlord and Tenant as of the effective date of
termination. Tenant shall execute and deliver such further instruments of
assignment or direction, in the form required by Tenant's insurance company to
enable Landlord to collect all insurance proceeds which are to be paid or
assigned to Landlord. In the event Tenant is not permitted to terminate this
Lease as a result of the Casualty, or elects not to terminate this Lease within
such 30-day period, then Tenant shall be entitled to receive all insurance
proceeds paid or payable as a result of the Casualty (to the extent necessary
for restoration), and Tenant shall promptly restore the Premises to the
condition it was in immediately prior to the Casualty or to such other condition
as may be approved by Landlord, regardless of the amount of such insurance
proceeds payable as a result of the Casualty. Landlord shall be entitled to
receive any insurance proceeds paid or payable in excess of the amount necessary
to restore the Premises to the condition existing immediately prior to the
Effective Date or otherwise approved by Landlord. Provided Tenant has maintained
rent loss insurance as required hereunder, and provided the insurance company
providing same does not assert any defense to Landlord's claim for such rent
insurance proceeds, Tenant's obligation to pay Base Rent shall abate until the
Premises has been repaired, restored, rebuilt, reconstructed or replaced, as
required herein, in proportion to the part of the Premises which is unusable by
Tenant; provided, however, that Tenant shall be responsible for any deductible
related to such rent insurance.

          (b) Notwithstanding anything to the contrary provided in subparagraph
20(a) above, in the event more than thirty percent (30%) of the useable area of
the Premises is rendered untenantable as a result of a Casualty, or in the event
that it will not be possible for Tenant to fully repair and restore the Premises
prior to the expiration of the term of this Lease, Landlord shall have the right
within thirty (30) days following the Casualty, to terminate this Lease by
providing written notice of such election to Tenant, in which case all insurance
proceeds paid or payable as a result of the Casualty less and except the amount
actually expended by Tenant in clearing the damage and description shall be paid
or assigned to Landlord, and all rent and other sums payable by Tenant hereunder
shall be accounted for as between Landlord and Tenant as of the effective date
of termination. Tenant shall execute and deliver such further instruments of
assignment or direction, in the form required by Tenant's insurance company to
enable Landlord to collect all insurance proceeds which are to be paid or
assigned to Landlord. Notwithstanding the foregoing, in the event that, within
ten (10) days after receipt of Landlord's notice, Tenant notifies Landlord that
it will restore the Premises at its sole cost and expense to a condition which
enables Tenant to continue to satisfactorily operate within the Premises, then
Landlord's election to terminate this Lease shall be void and of no further
force and effect, provided that all insurance proceeds paid or payable as a
result of the Casualty less and except the amount

                                       -8-

<PAGE>

actually expended by Tenant in clearing the damage and destruction shall be paid
or assigned to Landlord.

     21. Condemnation.

          (a) In the event of a taking of all or a substantial portion of the
Premises (so that the untaken portion is unsuitable for the continued feasible
and economic operation of the Premises by Tenant for substantially the same
purposes as immediately prior to such taking), then this Lease shall
automatically terminate and all rent and other sums payable by Tenant hereunder
shall be apportioned and paid through and including the date of such taking.

          (b) In the event of a taking, and in the event this Lease remains in
full force and effect, Landlord shall, with due diligence and in good and
workmanlike manner, to the extent of the proceeds actually received by Landlord,
promptly restore the remaining portion of the Premises, on a temporary basis, to
a tenantable condition.

          (c) Landlord shall be entitled to all awards, damages, compensation or
proceeds payable by reason of any taking, and Tenant shall not be entitled to
any portion thereof, and shall have no claim for, and hereby transfers, assigns,
conveys and sets over unto Landlord all of its right, title and interest, if
any, in or to any award, damages, compensation or proceeds payable by reason of
any taking; and, without limiting the generality of the foregoing, Tenant shall
have no claim, against Landlord or the condemning authority, or otherwise, for
any award, damages, compensation or proceeds for (i) the value of any unexpired
term of this Lease, or (ii) the value of any fixtures or improvements installed
by Tenant in the Premises. Nothing herein shall be construed, however, to
preclude Tenant from prosecuting any claim directly against the condemning
authority for loss of business, moving expenses, damage to, and cost of removal
of, trade fixtures, furniture and other personal property belonging to Tenant;
provided, however, that Tenant shall make no claim which shall diminish or
adversely affect any award claimed or received by Landlord.

     22. Indemnity; Release.

          (a) Tenant shall hold harmless Landlord, all "Landlord Affiliates" (as
herein defined), Landlord's Lender, and their employees and agents from, against
and in respect of, all liabilities, damages, losses, costs, expenses (including
all reasonable attorneys' fees), causes of action, suits, claims, demands and
judgments of any nature whatsoever arising, in whole or in part, out of, by
reason of or in connection with: (i) injury to or the death of persons or damage
to property during the term of the Lease (A) in, on or about the Premises,
except to the extent arising out of, by reason of or in connection with the
negligence of the person or entity seeking indemnification or (B) resulting from
the condition of the Premises; and (ii) the violation by Tenant during the term
of this Lease of any law affecting the use or occupancy of the Premises
including, without limitation, the Americans With Disabilities Act.

          (b) Tenant, on behalf of itself and all persons and entities claiming
through Tenant, waives all claims against Landlord, any Landlord Affiliate and
Landlord's Lender for damage to any property or injury to, or death of, any
person in, upon, or about the Premises arising at any time and from any cause
(including, without limitation, fire, explosion, falling

                                       -9-

<PAGE>

plaster, escaping steam or gas, electricity, water, rain, snow, flood or leaks
from any part of the Premises or from the pipes, appliances, plumbing works,
roof or subsurface of any floor or ceiling, or from the street or any other
place), and also (without limitation) arising from the condition of the Premises
or the presence of mold, fungi or any other hazardous or toxic substance in, on
or about the Premises, except to the extent arising out of, by reason of or in
connection with the affirmative actions or willful misconduct of the person or
entity seeking the benefit of the provisions of this subparagraph (b).

          (c) Tenant agrees that neither Landlord, nor any Landlord Affiliate,
nor Landlord's Lender will be liable or in any way responsible for, and Tenant
waives all claims against, and, with respect to claims by Tenant's shareholders,
directors, officers, employees, customers, invitees and licensees, agrees to
indemnify and hold harmless, Landlord, its Landlord Affiliates and Landlord's
Lender for any loss, injury or damage suffered by Tenant or others relating to
(i) loss or theft of, or damage to, property of Tenant or others during the term
of this Lease, except to the extent arising out of the affirmative actions or
willful misconduct of the person or entity seeking the benefit of the provisions
of this subparagraph 22(c); or (ii) damage caused by the public or by
construction of any private or public work, except to the extent arising out of
the affirmative actions or willful misconduct of the person or entity seeking
the benefits of this subparagraph 22(c).

          (d) Neither Landlord, its Landlord Affiliates nor Landlord's Lender
will be liable or in any way responsible to Tenant for, and Tenant waives all
claims against, and, with respect to claims by Tenant's shareholders, directors,
officers, employees, customers, invitees and licensees, agrees to indemnify and
hold harmless, Landlord, its Landlord Affiliates and Landlord's Lender for, any
loss, injury or damage that is insured or required to be insured by Tenant under
Section 5 of this Lease.

          (e) The term "Landlord Affiliate" shall mean any shareholder, officer,
director, member, manager, partner or "Affiliate" (as herein defined) of
Landlord. The term "Affiliate" shall mean any corporation, limited liability
company, limited partnership, general partnership or other entity controlled by,
controlling or under common control, directly or indirectly, with Landlord or
any shareholder, officer, director, member, manager or partner of Landlord. The
term "control" and the derivations thereof used herein shall have the same
meanings as are ascribed thereto in the Securities Act of 1933, as amended from
time to time, and the Regulations promulgated thereunder, as amended from time
to time.

          (f) The provisions of this Paragraph shall survive the termination or
expiration of the term of this Lease.

     23. Signage. Tenant shall not install any signage on the Premises; however,
Tenant shall be permitted to keep any signage in effect on the Effective Date,
so long as such signs shall be installed and maintained in compliance with
applicable governmental laws, ordinances, rules and regulations and all private
recorded covenants governing such signs.

     24. Attorneys' Fees. In the event that either party is required to enforce
the provisions of this Lease, such party, if it prevails, shall be entitled to
receive from the other party

                                      -10-

<PAGE>

all costs and expenses incurred at trial and on appeal in connection with such
enforcement, including but not limited to reasonable attorneys' fees.

     25. Parties. "Landlord" as used in this Lease shall include Landlord's
assigns and successors in title to the Premises. "Tenant" shall include Tenant
and, if this Lease shall be validly assigned or the Premises validly sublet,
shall include such assignee or subtenant, its successors and permitted assigns.
"Landlord" and "Tenant" shall include male and female, singular and plural,
corporation, partnership or individual, as may fit the particular parties.

     26. Holding Over. If Tenant remains in possession of the Premises after
expiration of the term of this Lease, with Landlord's acquiescence and without
any distinct agreement of parties, Tenant shall be a tenant at will at a rental
rate equal to (A) for the first two (2) months of holding over, 125% of the rate
in effect at the end of this Lease, and (B) thereafter, 150% of the rate in
effect at the end of this Lease; there shall be no renewal of this Lease by
operation of law.

     27. Sale by Landlord. In the event of any "Transfer" (as herein defined) by
Landlord of its interest in and to the Premises, all obligations under this
Lease of the "Transferor" (as herein defined) shall, to the extent assumed by
the "Transferee" (as herein defined), cease and terminate and, to the extent
assumed by the Transferee, Tenant releases the Transferor from same, and, to the
extent assumed by the Transferee, Tenant shall thereafter look only and solely
to the Transferee for performance of all of Landlord's duties and obligations
under this Lease. The term "Transfer," as used herein, shall mean any sale,
conveyance, transfer, assignment or other disposition; "Transferor," as used
herein shall mean the party carrying out the Transfer; and "Transferee," as used
herein, shall mean the person or entity to whom or which the Premises were
Transferred.

     28. Surrender of the Premises. At the expiration or earlier termination of
the term of this Lease, Tenant shall surrender the Premises to Landlord in as
good condition and repair as it exists on the Effective Date, broom clean, but
subject to normal wear and tear and casualty or condemnation.

     29. Notices. Any notice, demand, request or other communication required or
permitted to be given hereunder (a "notice") shall be in writing and either (i)
delivered by a commercial courier service ("Courier"), (ii) sent by U.S.
Certified or Registered Mail, return receipt requested, postage prepaid ("U.S.
Mail"), or (iii) sent by a nationally recognized overnight delivery service such
as Federal Express, UPS or a similar service ("Overnight Courier"), or (iv) sent
by fax ("Fax"), to the party being given such notice at the following addresses:

     Tenant:           Crawford & Company
                       5620 Glenridge Drive, N.E.
                       Atlanta, GA 30328
                       Attn: Jim Connor, Assistant Vice President
                       Telephone: (404) 497-6661
                       Facsimile: (404) 497-6665

     with a copy to    Crawford & Company

                                      -11-

<PAGE>

                       5620 Glenridge Drive, N.E.
                       Atlanta, GA 30328
                       Attn: Allen W. Nelson
                       Telephone: (404) 847-4550
                       Facsimile: (404) 847-4066

     Landlord:         3348 Peachtree Road
                       Suite 250
                       Atlanta, Georgia 30326
                       Attn: Kent S. Levenson
                       Telephone: (404) 442-7888
                       Facsimile: (404) 442-7999

     with a copy to:   Marks & Williams, LLC
                       Two Midtown Plaza, Suite 1150
                       1349 West Peachtree Street
                       Atlanta, GA 30309
                       Attn: Randolph A. Marks, Esq.
                       Telephone: (404) 892-3999
                       Facsimile: (404) 892-2824

All notices shall be effective (and the time period in which a response to any
notice must be given, if any, shall commence to run on such effective date)
depending on the form of delivery, as follows: (i) if delivered by a Courier, on
the date of receipt, or (ii) if sent by Mail, three (3) business days after
being deposited in the United States Mail, or (iii) if sent by an Overnight
Courier, on the date of receipt, or (iv) if sent by Fax, on the date that the
transmitting machine generates a report showing receipt by the addressee
(provided, however, that in the event of a notice sent by Fax, the sending party
shall, within one (1) business day after sending the notice by Fax, also send a
copy of the notice by another approved method). Rejection or failure to claim
delivery of any such notice, or the inability to deliver because of changed
address of which no notice was given, shall be deemed to be receipt of the
notice sent as of the date of attempted delivery by a Courier, the date of
deposit in the Mail or the date of attempted delivery by an Overnight Courier,
as the case may be. By giving at least ten (10) days written notice thereof, any
party shall have the right from time to time and at any time to change their
respective addresses.

     30. Covenant of Quiet Enjoyment. So long as Tenant observes and performs
the covenants and agreements contained herein to be observed and performed by
Tenant, Landlord covenants and agrees that Tenant shall at all times during the
term of this Lease peacefully and quietly have and enjoy possession of the
Premises, but always subject to the terms hereof.

     31. Subordination and Attornment. Tenant agrees that this Lease shall be
subject and subordinate to all security deeds ("Mortgages") now or hereafter
encumbering all or any portion of the Premises, provided that Tenant receives an
agreement from the holder of any such Mortgage providing that this Lease and
Tenant's rights hereunder shall not be divested or in any way affected by any
foreclosure or other default proceedings thereunder so long as there exists no
Event of Default under the terms of this Lease. Tenant shall at any time
hereafter, on demand

                                      -12-

<PAGE>

of Landlord or the holder of any Mortgage, execute any instruments which may
reasonably be required by such party for the purpose of evidencing such
subordination of this Lease to the lien or security interest of such party.
Tenant shall, upon demand, at any time or times, execute, acknowledge and
deliver to Landlord or the holder of any Mortgage, without expense, any and all
documents, in form and substance reasonably acceptable to Tenant, that may be
necessary to make this Lease superior to the lien of the Mortgage. If the holder
of any Mortgage shall hereafter succeed to the rights of Landlord under this
Lease, Tenant shall, at such holder's request, attorn to and recognize such
successor as Tenant's landlord under this Lease. Tenant shall promptly execute,
acknowledge and deliver any instrument that may be necessary to evidence such
attornment. Upon such attornment, this Lease shall continue in full force and
effect as a direct lease between each successor Landlord and Tenant, subject to
all of the terms, covenants and conditions of this Lease.

     32. Estoppel Certificate. At any time and from time to time, Tenant, on or
before the date specified in a request therefor made by Landlord, which date
shall not be earlier than ten (10) days from the making of such request, shall
execute, acknowledge and deliver to Landlord a certificate evidencing whether or
not (i) this Lease is in full force and effect; (ii) this Lease has been amended
in any way; (iii) there are any existing defaults on the part of Landlord
hereunder, to the knowledge of Tenant, and specifying the nature of such
defaults, if any; (iv) the date to which rent and other amounts due hereunder,
if any, have been paid; and (v) such other matters as may reasonably be
requested by Landlord. Each certificate delivered pursuant to this Paragraph may
be relied on by any prospective purchaser of all or any portion of the Premises
or transferee of Landlord's interest hereunder or by any holder of any Mortgage
now or hereafter encumbering all or any portion of the Premises.

     33. Governmental Regulations. Tenant agrees, at its sole cost, risk,
expense and liability, to promptly comply with all requirements of any legally
constituted public authority relating to Tenant's use or occupancy of the
Premises; provided, however, Tenant shall have no obligation to make any
alterations to the structural portions of the Premises required by any such
legal requirements except to the extent such alterations are legally required in
connection with Tenant's continued use and occupancy of the Premises. In the
event of a violation of any such requirement that requires Tenant to vacate,
Tenant shall continue to pay rent, including without limitation Base Rent, for
the remainder of the term of this Lease. If Tenant remains in the Premises,
Tenant shall be responsible, at its cost, for compliance with all such legal
requirements relating to its specific use and occupancy of the Premises.

     34. Successors and Assigns. The provisions of this Lease shall inure to the
benefit of and be binding upon Landlord and Tenant and their respective
successors, heirs, legal representatives and assigns.

     35. Limitation of Liability. Landlord's obligations and liability to Tenant
with respect to this Lease shall be limited solely to Landlord's interest in the
Premises.

     36. Net Lease. This Lease shall be deemed and construed to be a "net lease"
and, except as herein otherwise expressly provided, the Landlord shall receive
all rent and all other payments hereunder to be made by the Tenant free from any
charges, assessments, impositions, expenses or deductions. Nothing herein
contained shall be construed to require Tenant to pay

                                      -13-

<PAGE>

any inheritance, franchise, corporation, income or excess profits taxes, or
surtax imposed upon Landlord or upon the legal representatives, successors or
assigns of any of them, or any sums that may be necessary to avoid a default on
any Mortgage which may at any time be placed upon the Premises.

     37. Brokerage. Richard Bowers & Co. ("Tenant's Broker") has represented
Tenant in connection with this Lease, and has not represented Landlord. Easlan
Capital of Atlanta, Inc. ("Landlord's Broker") has represented Landlord in
connection with this Lease, and has not represented Tenant. Tenant shall be
responsible to pay Tenant's Broker the compensation, if any, due in connection
with this Lease. Landlord shall be responsible to pay Landlord's Broker the
compensation, if any, due in connection with this Lease. Landlord and Tenant
represent and warrant to each other that no other person or entity is entitled
to a commission, fee or other compensation as a result of this Lease, and each
party agrees to indemnify and hold the other party harmless from and against any
claim, demand, suit, action, cause of action, liability, obligation or expense
(including reasonable attorney's fees actually incurred at trial and on appeal)
which such party has incurred or paid as a result of the breach by the
indemnifying party of the foregoing representation and warranty. The provisions
of this Paragraph shall survive the expiration or termination of this Lease.

     38. Hazardous Substances. Tenant covenants and agrees that during the term
of this Lease it shall not cause any Hazardous Substances (as hereinafter
defined) to be generated, used, treated, stored, released or disposed of in, on,
at, or under the Premises without Landlord's prior written consent. Tenant
further covenants and agrees to indemnify Landlord for any loss, cost, damage,
liability or expense (including, without limitation, attorneys' fees), as well
as environmental impairment damages, that Landlord might ever incur because of
Tenant's failure to comply with the provisions of the immediately preceding
sentence, this indemnification to survive the expiration or other termination of
this Lease. For the purposes of the Paragraph, Hazardous Substances shall mean
and refer to (i) all those substances, elements, materials, compounds or wastes
defined or classified as hazardous or restricted under any governmental
requirement; (ii) petroleum products, including, without limitation, waste oils;
(iii) "asbestos," as defined in 29 C.F.R. Sec. 1910.1001 et seq. (or analogous
regulations promulgated under the Occupational Safety and Health Act of 1970, as
amended from time to time, and the regulations promulgated thereunder); (iv)
"PCBs," as defined in 40 C.F.R. Sec. 761 et seq., and "TCDD," as defined in 40
C.F.R. Sec. 775 et seq. (or in either case analogous regulations promulgated
under the Toxic Substances Control Act, as amended from time to time); and (v)
any other substance, element, material or compound defined or restricted as a
hazardous, toxic, radioactive or dangerous substance, material or waste by the
Environmental Protection Agency or by any other ordinance, statute, law, code,
or regulation of any federal, state or local governmental entity or any agency,
department or other subdivision thereof, whether now or later enacted, issued,
or promulgated. Notwithstanding any other provision contained herein to the
contrary, Landlord acknowledges and agrees that Tenant, in its capacity as
Tenant under this Lease, shall have no liability or responsibility whatsoever
for any pre-existing environmental conditions (i.e. conditions existing as of
the Effective Date) with respect to the Premises.

     39. Tenant's Covenants.

                                      -14-

<PAGE>

          (a) Tenant covenants and agrees with Landlord that on or before the
expiration or termination of this Lease, Tenant will terminate all management,
service, equipment, supply, maintenance, security, concession or other
agreements with respect to or affecting the Premises ("Service Contracts").
Tenant shall be responsible for all termination fees payable under the Service
Contracts. The provisions of this subparagraph shall survive the expiration or
termination of this Lease.

          (b) Tenant will give prompt written notice to Landlord of (i) any
notice or allegation of violation of any laws, ordinances, rules or regulations
with respect to the Premises received by Tenant, (ii) any suit, judgment or
other proceeding filed, entered or threatened with respect to the Premises or
Tenant's use thereof, or (iii) any actual or contemplated changes in the zoning
of the Premises or any other requirements which would adversely affect the use
of the Premises of which Tenant becomes aware. In addition, Tenant shall use
reasonable efforts to advise Landlord of any event or change in any condition of
the Premises which adversely affects the use, operation, or maintenance of the
Premises and of which Tenant becomes aware.

     40. Miscellaneous. Time is of the essence of this Lease. This Lease
contains the entire agreement of Landlord and Tenant and no representations or
agreements, oral or otherwise, between the parties not embodied herein shall be
of any force or effect. This Lease may not be amended other than in a writing
signed by Landlord and Tenant. No failure of Landlord or Tenant to exercise any
power given either party hereunder, or to insist upon strict compliance by
Tenant of any obligations hereunder, and no custom or practice of the parties at
variance with the terms hereof shall constitute a waiver of either party's right
to demand exact compliance with the terms hereof. If any clause or provision of
this Lease is illegal, invalid or unenforceable under applicable present or
future laws or regulations effective during the term of this Lease, the
remainder of this Lease shall not be affected. In lieu of each clause or
provision of this Lease which is illegal, invalid or unenforceable, there shall
be added as a part of this Lease a clause or provision as nearly identical as
may be possible and as may be legal, valid and enforceable. This Lease shall be
governed by, construed under and interpreted and enforced in accordance with the
laws of the State where the Premises are located.

                         [SIGNATURES ON FOLLOWING PAGE]

                                      -15-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Lease to be
executed, under seal, in their respective names and on their behalf by their
duly authorized officials, the day and year indicated below.

                                        LANDLORD:

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

                                        Date of Execution by Landlord:
                                                                       ---------

                                        TENANT:

                                        CRAWFORD & COMPANY

                                        By:
                                            ------------------------------------
                                                                     , President
                                            -------------------------

                                        Attest:
                                                --------------------------------
                                                                     , Secretary
                                                ---------------------

                                                    [CORPORATE SEAL]

                                        Date of Execution by Tenant:
                                                                     -----------

                                      -16-

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