Document:

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                                                                    EXHIBIT 10.1

                              DEBTOR-IN-POSSESSION
                                CREDIT AGREEMENT

                          DATED AS OF DECEMBER 15, 2004

                                      AMONG

                          AMCAST INDUSTRIAL CORPORATION
           A CHAPTER 11 DEBTOR AND DEBTOR-IN-POSSESSION, AS BORROWER,

                                       AND

                           THE GUARANTORS PARTY HERETO

                                       AND

                               HERITAGE BANK, SSB
                                    AS AGENT

                                       AND

                                 THE DIP LENDERS
                         FROM TIME TO TIME PARTY HERETO

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                                TABLE OF CONTENTS

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<S>                                                                                                              <C>
ARTICLE 1 DEFINITIONS............................................................................................    1
         Section 1.1       Certain Defined Terms.................................................................    1
         Section 1.2       Accounting Terms and Determinations...................................................   18
         Section 1.3       Other Definitional Provisions.........................................................   19

ARTICLE 2 LOANS..................................................................................................   19
         Section 2.1       Loans.................................................................................   19
         Section 2.2       Interest, Interest Calculations and Certain Fees......................................   21
         Section 2.3       Prepayments...........................................................................   22
         Section 2.4       Notes.................................................................................   23
         Section 2.5       General Provisions Regarding Payment; Loan Account....................................   23
         Section 2.6       Maximum Interest......................................................................   23
         Section 2.7       Taxes.................................................................................   24
         Section 2.8       Capital Adequacy......................................................................   25
         Section 2.9       Ancillary Services....................................................................   25

ARTICLE 3 REPRESENTATION AND WARRANTIES..........................................................................   26
         Section 3.1       Existence and Power...................................................................   26
         Section 3.2       Organization and Governmental Authorization; No Contravention.........................   26
         Section 3.3       Binding Effect........................................................................   27
         Section 3.4       Capitalization........................................................................   27
         Section 3.5       Financial Information.................................................................   27
         Section 3.6       Litigation............................................................................   28
         Section 3.7       Ownership of Property.................................................................   28
         Section 3.8       No Default............................................................................   28
         Section 3.9       Labor Matters.........................................................................   28
         Section 3.10      Regulated Entities....................................................................   29
         Section 3.11      Margin Regulations....................................................................   29
         Section 3.12      Compliance With Laws..................................................................   29
         Section 3.13      Taxes.................................................................................   29
         Section 3.14      Compliance with ERISA.................................................................   29
         Section 3.15      Brokers...............................................................................   30
         Section 3.16      Budgets...............................................................................   30
         Section 3.17      Employment, Equityholders and Subscription Agreements.................................   30
         Section 3.18      Compliance with Environmental Requirements; No Hazardous Materials....................   31
         Section 3.19      Intellectual Property.................................................................   32
         Section 3.20      Real Property Interests...............................................................   32
         Section 3.21      Matters Relating to Collateral........................................................   32
         Section 3.22      Continued Business....................................................................   33
         Section 3.23      Insurance.............................................................................   33
         Section 3.24      Full Disclosure.......................................................................   33
         Section 3.25      Consents or Approvals.................................................................   33
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<TABLE>
<S>                                                                                                                 <C>
         Section 3.26      Representations and Warranties Incorporated from Other DIP Loan Documents.............   33

ARTICLE 4 AFFIRMATIVE COVENANTS..................................................................................   34
         Section 4.1       Financial Statements and Other Reports................................................   34
         Section 4.2       Payment and Performance of Obligations................................................   38
         Section 4.3       Conduct of Business and Maintenance of Existence......................................   38
         Section 4.4       Maintenance of Property; Insurance....................................................   38
         Section 4.5       Compliance with Laws..................................................................   39
         Section 4.6       Inspection of Property, Books and Records.............................................   40
         Section 4.7       Use of Proceeds.......................................................................   40
         Section 4.8       DIP Lenders' Meetings.................................................................   41
         Section 4.9       Hazardous Materials; Remediation......................................................   41
         Section 4.10      Further Assurances....................................................................   41
         Section 4.11      Cooperation...........................................................................   41
         Section 4.12      Debt Ratings..........................................................................   41
         Section 4.13      Budget................................................................................   42

ARTICLE 5 NEGATIVE COVENANTS.....................................................................................   42
         Section 5.1       Debt..................................................................................   42
         Section 5.2       Liens.................................................................................   42
         Section 5.3       Restricted Distributions..............................................................   43
         Section 5.4       Restrictive Agreements................................................................   43
         Section 5.5       Payments and Modifications of Certain Debt............................................   43
         Section 5.6       Consolidations, Mergers and Sales of Assets...........................................   44
         Section 5.7       Purchase of Assets, Investments.......................................................   44
         Section 5.8       Transactions with Affiliates..........................................................   44
         Section 5.9       Modification of Organizational Documents..............................................   45
         Section 5.10      Fiscal Year...........................................................................   45
         Section 5.11      Conduct of Business...................................................................   45
         Section 5.12      Corporate Names; Jurisdiction of Organization.........................................   45
         Section 5.13      Prepetition Transaction Documents.....................................................   45
         Section 5.14      Lease Payments........................................................................   45
         Section 5.15      Bank Accounts.........................................................................   46
         Section 5.16      Hedging Transactions..................................................................   46
         Section 5.17      Payments to Prepetition Unsecured Creditors...........................................   46
         Section 5.18      Pension Plan Payments.................................................................   46
         Section 5.19      Regulations U and X...................................................................   46

ARTICLE 6 ACCOUNTS AND INVENTORY REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS...........................   47
         Section 6.1       Accounts and Account Collections......................................................   47
         Section 6.2       Inventory.............................................................................   49

ARTICLE 7 PERFORMANCE COVENANTS..................................................................................   49

ARTICLE 8 CONDITIONS.............................................................................................   49
         Section 8.1       Conditions to Effectiveness of this DIP Credit Agreement..............................   49
         Section 8.2       Conditions to Each Loan...............................................................   51
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<S>                                                                                                                 <C>
ARTICLE 9 EVENTS OF DEFAULT......................................................................................   52
         Section 9.1       Events of Default.....................................................................   52
         Section 9.2       Acceleration and Suspension or Termination of Aggregate Commitment....................   55
         Section 9.3       Default Rate of Interest..............................................................   56
         Section 9.4       Setoff Rights.........................................................................   56
         Section 9.5       Application of Proceeds...............................................................   56

ARTICLE 10 EXPENSES, INDEMNITY, TAXES AND RIGHT TO PERFORM.......................................................   57
         Section 10.1      Expenses..............................................................................   57
         Section 10.2      Indemnity.............................................................................   58
         Section 10.3      Taxes.................................................................................   59
         Section 10.4      Right to Perform......................................................................   59

ARTICLE 11 AGENT.................................................................................................   59
         Section 11.1      Appointment and Authorization.........................................................   59
         Section 11.2      Agent and Affiliates..................................................................   59
         Section 11.3      Action by Agent.......................................................................   60
         Section 11.4      Consultation with Experts.............................................................   60
         Section 11.5      Liability of Agent....................................................................   60
         Section 11.6      Indemnification.......................................................................   60
         Section 11.7      Right to Request and Act on Instructions..............................................   61
         Section 11.8      Credit Decision.......................................................................   61
         Section 11.9      Collateral Matters....................................................................   61
         Section 11.10     Agency for Perfection.................................................................   62
         Section 11.11     Notice of Default.....................................................................   62
         Section 11.12     Successor Agent.......................................................................   62
         Section 11.13     Disbursements of Loans; Payment.......................................................   63

ARTICLE 12 GUARANTY..............................................................................................   65

ARTICLE 13 MISCELLANEOUS.........................................................................................   66
         Section 13.1      Survival..............................................................................   66
         Section 13.2      No Waivers............................................................................   66
         Section 13.3      Notices...............................................................................   67
         Section 13.4      Severability..........................................................................   67
         Section 13.5      Amendments and Waivers................................................................   67
         Section 13.6      Assignments; Participations...........................................................   68
         Section 13.7      Headings..............................................................................   69
         Section 13.8      Confidentiality.......................................................................   69
         Section 13.9      GOVERNING LAW; SUBMISSION TO JURISDICTION.............................................   70
         Section 13.10     WAIVER OF JURY TRIAL..................................................................   71
         Section 13.11     Counterparts; Integration.............................................................   71
         Section 13.12     USA PATRIOT Act Notice................................................................   71
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                              ANNEXES AND EXHIBITS

ANNEXES

Annex A      -        Commitment Annex
Annex B      -        Closing Checklist
Annex C      -        Addresses for Notices
Annex D      -        Information Certificate

EXHIBITS

Exhibit A    -        Form of Assignment Agreement
Exhibit B    -        Form of Compliance Certificate
Exhibit C    -        Form of Borrowing Base Certificate
Exhibit D    -        Form of Notice of Borrowing

                              Annexes and Exhibits

<PAGE>

                      DEBTOR-IN-POSSESSION CREDIT AGREEMENT

            THIS DEBTOR-IN-POSSESSION CREDIT AGREEMENT dated as of December 15,
2004 among AMCAST INDUSTRIAL CORPORATION, a Chapter 11 debtor and
debtor-in-possession, as borrower ("BORROWER"), the Guarantors party hereto (the
Borrower and the Guarantors being collectively referred to herein as the "CREDIT
PARTIES", and each individually, a "CREDIT PARTY"), the financial institutions
from time to time parties hereto, each as a DIP Lender (collectively, the "DIP
LENDERS"), and HERITAGE BANK, SSB, as administrative agent for the DIP Lenders
("AGENT").

            Capitalized terms used herein have the meanings set forth herein
unless otherwise defined.

                                    RECITALS:

            WHEREAS, the DIP Lenders have agreed, subject to various conditions
precedent, to extend a post-petition working capital facility to Borrower to
provide working capital financing for Borrower, to provide funds for other
general business purposes of Borrower, and to refinance certain of Borrower's
Prepetition Obligations; and

            WHEREAS, each Credit Party desires to secure all of its Obligations
under the DIP Loan Documents by granting to Agent, for the benefit of Agent and
DIP Lenders, a security interest in and lien upon all of its personal and real
property, including without limitation all of the outstanding capital stock or
other equity securities, as applicable, of each Credit Party (other than
Borrower); and

            WHEREAS, each Guarantor is willing to unconditionally and
irrevocably guarantee all of the Obligations of Borrower to DIP Lenders under
the DIP Loan Documents;

            NOW, THEREFORE, in consideration of the premises and the agreements,
provisions and covenants herein contained, Borrower, the Guarantors, DIP
Lenders, and Agent hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

            SECTION 1.1 Certain Defined Terms.

            The following terms have the following meanings:

            "ACCESSIONS" means "accessions" (as defined in Article 9 of the UCC)
to other Collateral of each Credit Party.

            "ACCOUNTS" means "accounts" (as defined in Article 9 of the UCC) of
each Credit Party, including without limitation any and all rights to payment
for the sale or lease of goods or rendition of services, whether or not they
have been earned by performance, in each case, for purposes of calculating the
Borrowing Base, net of any credits, rebates or offsets owed by each Credit Party
to the respective customer.

                                       1

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            "ACCOUNT DEBTOR" means "account debtor" as defined in Article 9 of
the UCC.

            "ADMINISTRATION FEE" has the meaning set forth in SECTION 2.2(d).

            "AFFILIATE" means with respect to any Person (i) any Person that
directly or indirectly controls such Person, (ii) any Person which is controlled
by or is under common control, direct or indirect, with such controlling Person
and (iii) in the case of an individual, the parents, descendants, siblings and
spouse of such individual. As used in this definition, the term "CONTROL" of a
Person means the possession, directly or indirectly, of the power to vote ten
percent (10%) or more of any class of voting securities of such Person or to
direct or cause the direction of the management or policies of a Person, whether
through the ownership of voting securities, by contract or otherwise.

            "AGENT" means Heritage Bank in its capacity as administrative agent
for the DIP Lenders hereunder, as such capacity is established and subject to
the provisions of ARTICLE 11 and the successors of Heritage Bank in such
capacity.

            "AGGREGATE COMMITMENT" means the sum of each DIP Lender's Commitment
Amount.

            "AMENDED AND RESTATED RESTRUCTURING AGREEMENT" means that certain
Amended and Restated Restructuring Agreement dated as of August 28, 2003 by and
among Amcast Industrial Corporation, as borrower under the Prepetition Credit
Agreement, the "Guarantors" named therein, the Prepetition Agent on behalf of
the Prepetition Banks, the Prepetition Noteholders, the Prepetition Line of
Credit Lenders and the Prepetition Collateral Agent, as the same may be amended,
restated, supplemented, or otherwise modified from time to time prior to the
Petition Date.

            "AMENDMENT, WAIVER AND APPOINTMENT OF SUCCESSOR AGENT" means that
certain Amendment, Waiver and Appointment of Successor Agent dated as of
November 30, 2004 by and among Amcast Industrial Corporation, as borrower under
the Prepetition Credit Agreement, the "Guarantors" named therein, KeyBank
National Association, as resigning Agent, Heritage Bank, as successor Agent, and
the Prepetition Banks named therein.

            "ANCILLARY SERVICES" means any service or facility (other than any
Debt) extended to any Credit Party by any Designated DIP Lender Affiliate in
reliance on the agreement of a DIP Lender to indemnify such Designated DIP
Lender Affiliate in respect of such service or facility.

            "ASSET DISPOSITION" means any sale, lease, license or other
consensual disposition by any Credit Party of any asset, but excluding (i)
dispositions of Inventory in the ordinary course of business, and (ii) any loss
or damage to, or any condemnation or taking of, any Property.

            "ASSIGNEE" has the meaning set forth in SECTION 12.6(a).

            "ASSIGNMENT AGREEMENT" means an agreement substantially in the form
of EXHIBIT A hereto.

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            "AUDIT FEE" has the meaning set forth in SECTION 2.2(f).

            "AVOIDANCE ACTION RECOVERIES" means any and all recoveries of cash,
property or proceeds thereof in the Bankruptcy Cases in respect of any Avoidance
Actions.

            "AVOIDANCE ACTIONS" means any and all actions in the Bankruptcy
Cases under any and all of Sections 544, 547, 548, 549, 550 and 553 of the
Bankruptcy Code.

            "BANKRUPTCY CASES" means the cases under Chapter 11 of the
Bankruptcy Code in which the Credit Parties are the debtors and the
debtors-in-possession, filed on the Petition Date and pending before the
Bankruptcy Court.

            "BANKRUPTCY CODE" means the United States Bankruptcy Code, 11 U.S.C.
Section 101 et seq., as in effect on the Petition Date and as amended from time
to time.

            "BANKRUPTCY COURT" means the United States Bankruptcy Court for the
Southern District of Ohio, Western Division, having jurisdiction over the
Bankruptcy Cases.

            "BANKRUPTCY PLAN" means a final plan of reorganization for the
Credit Parties confirmed by final order of the Bankruptcy Court in the
Bankruptcy Cases that provides for, among other things, full, final and
indefeasible payment of the Obligations in immediately available funds and the
termination of the Aggregate Commitment or is otherwise in form and substance
satisfactory to Agent and the DIP Lenders.

            "BLOCKED ACCOUNT" has the meaning set forth in SECTION 6.1(d).

            "BORROWER" means Amcast Industrial Corporation, a Chapter 11 debtor
and debtor-in-possession.

            "BORROWER'S ACCOUNT" means the account specified on the signature
pages hereof below Borrower's name into which Loans (other than Protective
Advances, which shall be disbursed by Agent in a manner permitted by SECTION
2.1(a)(ii)) shall, absent other written instructions, be made, or such other
account as Borrower may specify by written notice to Agent.

            "BORROWING" means a borrowing of a Loan.

            "BORROWING BASE" means, as of any date of calculation, a dollar
amount calculated pursuant to the Borrowing Base Certificate most recently
delivered to Agent in accordance with the terms hereof, equal to the sum of (a)
85% of the aggregate Eligible Accounts owned by the Credit Parties, plus (b) 50%
of the aggregate Eligible Inventory owned by the Credit Parties, in each case as
shown on the most recent Borrowing Base Certificate delivered prior to such date
of determination. Required DIP Lenders may, from time to time, in the exercise
of reasonable credit judgment, reduce or increase any percentage amount set
forth in the first sentence of this definition (any such increase not to exceed
the percentages set forth above) based on either: (i) an event, condition or
other circumstance arising after the Closing Date, or (ii) an event, condition
or other circumstance existing on the Closing Date to the extent Agent has no
written notice thereof from a Credit Party prior to the Closing Date, in either
case under CLAUSE (i) or (ii) which, in the case of a decrease in such
percentages, adversely affects or,

                                       3

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in the reasonable credit judgment of Required DIP Lenders, could reasonably be
expected to adversely affect the Accounts and/or the Inventory.

            "BORROWING BASE CERTIFICATE" means a certificate, duly executed by a
Financial Officer, appropriately completed and substantially in the form of
EXHIBIT C hereto.

            "BUDGET" means the budget of Borrower relative to the operations of
the Credit Parties in the Bankruptcy Cases for any fiscal period, so delivered
to Agent and each DIP Lender, in form and substance reasonably satisfactory to
Agent and Required DIP Lenders.

            "BUSINESS DAY" means any day except a Saturday, Sunday or other day
on which either the New York Stock Exchange is closed, or on which commercial
banks in Dallas or New York are authorized by law to close.

            "CAPITAL EXPENDITURES" means, for any period, expenditures
(including the aggregate amount of Capital Lease Obligations incurred during
such period) made by each Credit Party to acquire or construct fixed assets,
plant and equipment (including renewals, improvements and replacements, but
excluding repairs) during such period computed in accordance with GAAP.

            "CAPITAL LEASE OBLIGATIONS" of any Person means the obligations of
such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) Property, or a combination thereof,
which obligations are required to be classified and accounted for as capital
leases on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.

            "CARVE-OUT" has the meaning provided in the Financing Order.

            "CASH EQUIVALENTS" means any Investment in (i) direct obligations of
the United States or any agency thereof, or obligations guaranteed by the United
States or any agency thereof, (ii) commercial paper rated at least A-1 or the
equivalent thereof by Standard & Poor's Ratings Service or P-1 or the equivalent
thereof by Moody's Investors Service, Inc., (iii) time deposits with, including
certificates of deposit issued by, any office located in the United States of
any DIP Lender or any bank or trust company which is organized under the laws of
the United States or any State thereof and has capital, surplus and undivided
profits aggregating at least $500,000,000 and which issues (or the parent of
which issues) certificates of deposit or commercial paper with a rating
described in CLAUSE (ii) above, (iv) repurchase agreements with respect to
securities described in CLAUSE (i) above entered into with an office of a bank
or trust company meeting the criteria specified in CLAUSE (iii) above, provided
that, in each case, such Investment matures within three months from the date of
acquisition thereof by any Credit Party, or (v) any money market or mutual fund
which invests only in the foregoing types of Investments and the liquidity of
which is satisfactory to Agent.

            "CHATTEL PAPER" means "chattel paper" (as defined in Article 9 of
the UCC) of each Credit Party.

            "CLOSING CHECKLIST" means ANNEX B to this DIP Credit Agreement.

            "CLOSING DATE" means the date of this DIP Credit Agreement.

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            "CLOSING FEE" has the meaning provided in SECTION 2.2(c).

            "CODE" means the Internal Revenue Code of 1986, as amended from time
to time.

            "COLLATERAL" means all property, now existing or hereafter acquired
(and whether or not acquired or generated prior or subsequent to the Petition
Date), mortgaged or pledged to, or purported to be subjected to a Lien in favor
of, Agent, for the benefit of Agent and DIP Lenders, pursuant to the Security
Documents, including without limitation all of each Credit Party's (i) Accounts;
(ii) Chattel Paper; (iii) Commercial Tort Claims; (iv) Deposit Accounts, all
cash, and other property deposited therein or otherwise credited thereto from
time to time and other monies and property in the possession or under the
control of Agent or any DIP Lender or any affiliate, representative, agent or
correspondent of Agent or any DIP Lender; (v) Documents; (vi) General
Intangibles, including without limitation any and all Intellectual Property,
(vii) Goods, including without limitation any and all Inventory, any and all
Equipment and any and all Fixtures; (viii) Instruments; (ix) Investment
Property; (x) Letter of Credit Rights; (xi) Supporting Obligations; (xii) any
and all other personal property and interests whether or not subject to the UCC;
(xiii) any and all books and records, in whatever form or medium, that at any
time evidence or contain information relating to any of the foregoing properties
or interests in properties or are otherwise necessary or helpful in the
collection thereof or realization thereon; (xiv) all Accessions and additions
to, and substitutions and replacements of, any and all of the foregoing; (xv)
all Proceeds and products of the foregoing, and all insurance pertaining to the
foregoing and proceeds thereof; and (xvi) all Real Property; provided that the
Collateral shall not include any Avoidance Action Recoveries.

            "COMMERCIAL TORT CLAIMS" means "commercial tort claims" (as defined
in Article 9 of the UCC) of each Credit Party.

            "COMMITMENT AMOUNT" means, as to any DIP Lender, the dollar amount
set forth opposite such DIP Lender's name on the Commitment Annex under the
columns "Interim Commitment Amount" and "Final Commitment Amount", or, if
different, in the most recent Assignment Agreement to which such DIP Lender is a
party.

            "COMMITMENT ANNEX" means ANNEX A to this DIP Credit Agreement.

            "COMMITMENT EXPIRY DATE" means the date 120 days after the Petition
Date; provided that so long as no Event of Default then exists, such date may be
extended for a successive additional period of up to 45 days, at the written
request of Borrower delivered to Agent not less than ten (10) days prior to the
end of such 120 day period and payment in immediately available funds of the
Extension Fee.

            "COMMITMENT PERCENTAGE" means, as to any DIP Lender, the percentage
obtained by dividing (x) the Commitment Amount of such DIP Lender, by (y) the
Aggregate Commitment. The initial Commitment Percentage of each Lender is set
forth opposite the name of such DIP Lender on the Commitment Annex under the
column "Commitment Percentage", or in the most recent Assignment Agreement to
which such DIP Lender is a party.

            "COMMITTEE" means the official committee appointed to represent
unsecured creditors in the Bankruptcy Cases pursuant to Bankruptcy Code Section
1102.

                                       5

<PAGE>

            "COMPLIANCE CERTIFICATE" means a certificate, duly executed by a
Financial Officer, appropriately completed and substantially in the form of
EXHIBIT B hereto.

            "CONCENTRATION ACCOUNT" has the meaning set forth in SECTION 6.1(d).

            "CONTINUING DIRECTOR" means a director who either is a member of
Borrower's board of directors as of the date hereof or who became a director
subsequent to such date and whose election was duly approved by a majority of
the Continuing Directors then on the board of directors of Borrower.

            "CONTROLLED GROUP" means all members of a controlled group of
corporations and all members of a controlled group of trades or businesses
(whether or not incorporated) under common control which, together with the
Credit Parties, are treated as a single employer under Section 414 of the Code
or Section 4001 of ERISA.

            "CREDIT EXPOSURE" means any period of time during which the
Aggregate Commitment is outstanding or any Loan, Reimbursement Obligation or
other Obligation remains unpaid; provided that no Credit Exposure shall be
deemed to exist solely due to the existence of contingent indemnification
liability, absent the assertion of a claim with respect thereto.

            "CREDIT PARTY" has the meaning set forth in the preamble of this DIP
Credit Agreement.

            "CRO" has the meaning set forth in SECTION 9.1(y).

            "CTC COMPANY" shall mean Casting Technology Company, an Indiana
general partnership, Amcast Casting Technologies, Inc. an Indiana corporation,
and Izumi, Inc., a Delaware corporation.

            "DEBT" of a Person means at any date, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person upon which interest charges are customarily paid, (d)
all obligations of such Person under conditional sale or other title retention
agreements relating to Property acquired by such Person, (e) all obligations of
such Person in respect of the deferred purchase price of Property or services
(excluding current accounts payable (other than any account payable arising
prior to the Petition Date) incurred in the ordinary course of business and not
more than 45 days past due), (f) all Debt of others secured by (or for which the
holder of such Debt has an existing right, contingent or otherwise, to be
secured by) any Lien on Property owned or acquired by such Person, whether or
not the Debt secured thereby has been assumed, (g) all Guarantees by such Person
of Debt of others, (h) all Capital Lease Obligations of such Person, (i) all
obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty and (j) all obligations,
contingent or otherwise, of such Person in respect of bankers' acceptances. The
Debt of any Person shall include the Debt of any other entity (including any
partnership in which such Person is a general partner) to the extent such Person
is liable therefor as a result of such Person's ownership interest in or other
relationship with such entity, except to the extent the terms of such Debt
provide that such Person is not liable therefor.

                                       6

<PAGE>

            "DEFAULT" means any condition or event which with the giving of
notice or lapse of time or both would, unless cured or waived, become an Event
of Default.

            "DEFAULTED DIP LENDER" means, so long as such failure shall remain
in existence and uncured, any DIP Lender which has failed to make any Loan or
other credit accommodation, disbursement or reimbursement required pursuant to
the terms of any DIP Loan Documents.

            "DEPOSIT ACCOUNT" means a "deposit account" (as defined in Article 9
of the UCC) of each Credit Party.

            "DEPOSIT ACCOUNT CONTROL AGREEMENT" means an agreement, in form and
substance satisfactory to Agent, among Agent, Borrower or the applicable
Guarantor maintaining a Deposit Account at any bank, and such bank, which
agreement provides that (x) such bank shall comply with instructions originated
by Agent directing disposition of the funds in such Deposit Account without
further consent by Borrower or such Guarantor (as applicable), and (y) such bank
shall agree that it shall have no Lien on, or right of setoff against, such
Deposit Account or the contents thereof, other than in respect of commercially
reasonable fees and other items expressly consented to by Agent, and containing
such other terms and conditions as Agent may require, including (i) as to any
such agreement pertaining to any Blocked Account, providing that all items
received or deposited in such Blocked Account are the property of Agent, and
that such bank shall wire, or otherwise transfer, including by reverse ACH
transfer, in immediately available funds, on a daily basis to the Concentration
Account all funds received or deposited into such Blocked Account and (ii) as to
any such agreement pertaining to the Concentration Account, providing that all
items received or deposited in the Concentration Account are the property of
Agent, and that such bank shall wire or otherwise transfer, in immediately
available funds, on a daily basis to the Payment Account all funds received or
deposited in the Concentration Account.

            "DESIGNATED LENDER DIP AFFILIATES" means any Affiliate of Agent or
any DIP Lender that (i) from time to time makes Ancillary Services available to
any Credit Party and (ii) in the case of an Affiliate of a DIP Lender other than
Agent, is expressly identified in writing by Agent, in its sole discretion, as a
Designated DIP Lender Affiliate.

            "DIP CREDIT AGREEMENT" means this Debtor-In-Possession Credit
Agreement dated as of December 15, 2004 as amended, supplemented and otherwise
modified from time to time.

            "DIP LENDER" means (i) each Person party hereto in its capacity as a
DIP Lender, (ii) each other Person that becomes a holder of a Note pursuant to
SECTION 12.6, (iii) Agent, to the extent of any Protective Advances and other
Loans made by Agent which have not been settled among the DIP Lenders pursuant
to SECTION 11.13, and (iv) the respective successors of all of the foregoing,
and DIP Lenders means all of the foregoing. In addition to the foregoing, for
the purpose of identifying the Persons entitled to share in the Collateral and
the proceeds thereof under, and in accordance with the provisions of, this DIP
Credit Agreement and the Security Documents, the term "DIP Lender" shall include
Designated Lender Affiliates.

            "DIP LOAN DOCUMENTS" means this DIP Credit Agreement, the Notes, the
Security Documents, the Information Certificate, the applicable Financing Order,
and all other

                                       7

<PAGE>

documents, instruments and agreements contemplated herein or thereby and
executed concurrently herewith or at any time and from time to time hereafter,
as any or all of the same may be amended, supplemented, restated or otherwise
modified from time to time.

            "DOCUMENTS" means "documents" (as defined in Article 9 of the UCC)
of each Credit Party.

            "EFFECTIVE DATE" means the date upon which all conditions contained
in SECTION 8.1 have first been satisfied.

            "ELIGIBLE ACCOUNT" means, as at any date, the aggregate amount of
all Accounts at such date payable to any Credit Party other than the following
(determined without duplication):

            (a) any Account not payable in United States dollars,

            (b) any Account that, at the date of issuance of the invoice
therefor, was payable more than 90 days after shipment of the related Inventory,

            (c) any Account owing from a Guarantor or Affiliate of any Credit
Party,

            (d) any Account owing from an account debtor whose principal place
of business is located outside of the United States of America,

            (e) any Account owing from an account debtor that the Required DIP
Lenders (through the Agent) have notified Borrower does not have a satisfactory
credit standing (as determined in the reasonable credit judgment of the Required
DIP Lenders),

            (f) any Account that remains unpaid for more than 90 days after the
date of the issuance of the original invoice therefor or is more than 45 days
past due,

            (g) all Accounts of any Account Debtor if more than 50% of the
aggregate amount of the Accounts owing from such Account Debtor shall at the
time have remained unpaid for more than 90 days after the date of the issuance
of the original invoices therefor or is more than 45 days past due,

            (h) all Accounts owing from any Account Debtor (other than General
Motors Company) if the Accounts owing from such Account Debtor and its
Affiliates at the time exceed 50% of all Accounts then payable to the Borrower,
but only to the extent of such excess,

            (i) any Accounts as to which there is any unresolved dispute with
the respective account debtor (but only to the extent of the amount thereof in
dispute),

            (j) any Accounts evidenced by an Instrument not in the possession of
the Agent,

            (k) any Accounts representing an obligation for goods sold on
consignment, approval or a sale-or-return basis or subject to any other
repurchase or return arrangement, and

                                       8

<PAGE>

            (l) any Accounts that Agent determines in its reasonable credit
      judgment is ineligible for any other reason.

            "ELIGIBLE INVENTORY" means, as at any date, all of the Inventory of
each Credit Party (determined without duplication) (i) that is owned by and
under the control of such Credit Party as at such date, (ii) that, in the case
of the Borrowing Base, is located in a jurisdiction in the United States of
America and as to which appropriate Uniform Commercial Code financing statements
have been filed naming the relevant Credit Party as "debtor" and the Agent as
"secured party", (iii) that is in good condition, (iv) that meets all standards
imposed by any governmental agency or department or division thereof having
regulatory authority over such Inventory, its use or sale and (v) that is either
currently usable or currently saleable in the normal course of such Credit
Party's business without any notice to, or consent of, any governmental agency
or department or division thereof which has not already been obtained; provided
that (x) in no event shall Inventory that has been held by a Credit Party as
inventory for more than 365 days be "Eligible Inventory" and (y) the Required
DIP Lenders (through the Agent) may at any time exclude from Eligible Inventory
any type of Inventory that the Required DIP Lenders (in their reasonable credit
judgment) determine to be unmarketable or obsolete.

            ENVIRONMENT" means soil, surface water, ground water, land sediment,
surface or subsurface strata or ambient air.

            "ENVIRONMENTAL LAWS" means any and all federal, state, local and
foreign statutes, laws, judicial decisions, regulations, ordinances, rules,
judgments, orders, decrees, codes, plans, injunctions, permits, concessions,
grants, franchises, licenses, agreements and governmental restrictions, whether
now or hereafter in effect, relating to the Environment or the effect of the
Environment on human health or to emissions, discharges or releases of
pollutants, contaminants, Hazardous Materials or wastes into the Environment, or
otherwise relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of pollutants, contaminants, Hazardous
Materials or wastes or the clean-up or other remediation thereof.

            "EQUIPMENT" means, collectively, "equipment" and "fixtures" (as each
term is defined in Article 9 of the UCC) of each Credit Party.

            "ERISA" means the Employee Retirement Income Security Act of 1974.

            "EVENT OF DEFAULT" has the meaning set forth in SECTION 9.1.

            "EXTENSION FEE" means an amount equal to $100,000 payable pro rata
to the DIP Lenders in connection with the extension of the Commitment Expiry
Date in accordance with the definition of such term in this DIP Credit
Agreement.

            "FINAL FINANCING ORDER" means a final order entered in the
Bankruptcy Cases after the satisfaction of the fifteen (15) day notice period
contained in Rule 4001(c) of the Federal Rules of Bankruptcy Procedure,
authorizing Borrower, among other things, to obtain the financing and to grant
the Liens contemplated by and described in this DIP Credit Agreement, in form
and substance substantially similar to the Interim Financing Order and otherwise
in form and substance satisfactory to Agent and DIP Lenders, as amended,
modified or supplemented

                                       9

<PAGE>

from time to time with the prior consent of all DIP Lenders; provided, however,
that if the purpose of such amendment, modification or supplement is solely to
reflect an amendment, modification or supplement to this DIP Credit Agreement,
then such amendment, modification or supplement of the Final Financing Order
shall only require the approval of such number of DIP Lenders as would be
required to approve such amendment, modification or supplement under SECTION
12.5 of this DIP Credit Agreement.

            "FINANCIAL OFFICER" means any of the following officers of Borrower:
chief executive offer, chief financial officer, president, vice president of
finance, treasurer or vice president and controller.

            "FINANCING ORDER" means the Interim Financing Order or the Final
Financing Order, as applicable.

            "FISCAL YEAR" means a fiscal year of Borrower.

            "FIXTURES" means "fixtures" (as defined in Article 9 of the UCC) of
each Credit Party.

            "GAAP" means generally accepted accounting principles set forth from
time to time in the opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and statements
and pronouncements of the Financial Accounting Standards Board (or agencies with
similar functions of comparable stature and authority within the U.S. accounting
profession), which are applicable to the circumstances as of the date of
determination.

            "GENERAL INTANGIBLES" means "general intangibles" (as defined in
Article 9 of the UCC) of each Credit Party.

            "GOODS" means "goods" (as defined in Article 9 of the UCC) of the
each Credit Party.

            "GUARANTEE" by any Person means any obligation, contingent or
otherwise, of such Person directly or indirectly guaranteeing any Debt or other
obligation of any other Person and, without limiting the generality of the
foregoing, any obligation, direct or indirect, contingent or otherwise, of such
Person (i) to purchase or pay (or advance or supply funds for the purchase or
payment of) such Debt or other obligation (whether arising by virtue of
partnership arrangements, by agreement to keep-well, to purchase assets, goods,
securities or services, to take-or-pay, or to maintain financial statement
conditions or otherwise) or (ii) entered into for the purpose of assuring in any
other manner the obligee of such Debt or other obligation of the payment thereof
or to protect such obligee against loss in respect thereof (in whole or in
part), provided that the term Guarantee shall not include endorsements for
collection or deposit in the ordinary course of business. The term "Guarantee"
used as a verb has a corresponding meaning.

            "GUARANTORS" means Amcast Automotive of Indiana, Inc., an Indiana
corporation, Speedline North America, Inc., an Indiana corporation, Amcast
Casting Technologies, Inc., an Indiana corporation, Izumi, Inc., a Delaware
corporation, Casting Technology Company, an Indiana corporation, Amcast
Automotive, Inc., a Michigan corporation, Amcast Plumbing, Inc.

                                       10

<PAGE>

f/k/a Elkhart Products Corporation, an Indiana corporation, LBC Group Corp., a
Delaware corporation, Lee Brass Company, a Delaware corporation, Amcast
Industrial Financial Services, Inc., an Ohio corporation, Amcast Investment
Services Corporation, a Delaware corporation, Amcast Aviation Corporation, an
Ohio corporation, Amcast Precision Products, Inc., a California corporation,
Flagg Brass Industrial, L.L.C., an Ohio limited liability company, and AS
International, Inc., a Delaware corporation.

            "HAZARDOUS MATERIALS" means (i) any "hazardous substance" as defined
in the Comprehensive Environmental Response, Compensation and Liability Act of
1980, (ii) asbestos, (iii) polychlorinated biphenyls, (iv) petroleum, its
derivatives, by-products and other hydrocarbons, and (v) any other toxic,
radioactive, caustic or otherwise hazardous substance regulated under
Environmental Laws.

            "HAZARDOUS MATERIALS CONTAMINATION" means contamination (whether now
existing or hereafter occurring) of the Environment or any part thereof that
results from a release of Hazardous Materials.

            "HERITAGE BANK" means Heritage Bank, SSB, a Texas chartered bank.

            "HIGHLAND" means Highland Capital Management, L.P., as collateral
manager for certain of the DIP Lenders.

            "INDEMNITEES" has the meaning set forth in SECTION 10.2.

            "INFORMATION CERTIFICATE" means that certain Information Certificate
dated on or about December 15, 2004 executed by each Credit Party and delivered
to Agent, a copy of which is attached as ANNEX D hereto.

            "INSTRUMENT" means an "instrument" (as defined in Article 9 of the
UCC) of each Credit Party.

            "INTELLECTUAL PROPERTY" means, with respect to any Person, all
patents, trademarks, trade names, copyrights, technology, know-how and
processes, and all applications therefor, used in or necessary for the conduct
of business by such Person.

            "INTERIM AMOUNT" means the maximum principal amount allowed to be
borrowed hereunder during the Interim Period, not to exceed $5,000,000.

            "INTERIM FINANCING ORDER" means the financing order to be entered in
the Bankruptcy Cases authorizing Borrower to, among other things, (i) obtain
interim financing, (ii) pay certain fees or expenses and (iii) authorizing each
Credit Party to grant the Liens contemplated by and described in this DIP Credit
Agreement.

            "INTERIM PERIOD" means the period commencing upon the date of entry
of the Interim Financing Order and continuing to the date of entry of the Final
Financing Order.

            "INVENTORY" means "inventory" (as defined in Article 9 of the UCC)
of each Credit Party.

                                       11

<PAGE>

            "INVESTMENT" means any investment in any Person, whether by means of
acquiring or holding securities, capital contribution, loan, time deposit,
advance, Guarantee or otherwise.

            "INVESTMENT PROPERTY" means "investment property" (as defined in
Article 9 of the UCC) of each Credit Party.

            "LETTER OF CREDIT RIGHTS" means "letter of credit rights" (as
defined in Article 9 of the UCC) of each Credit Party.

            "LIEN" means, with respect to any asset, any mortgage, lien,
adequate protection or replacement lien, pledge, charge, security interest or
encumbrance of any kind, or any other type of preferential arrangement that has
the practical effect of creating a security interest, in respect of such asset.
For the purposes of this DIP Credit Agreement and the other DIP Loan Documents,
each Credit Party shall be deemed to own subject to a Lien any asset that it has
acquired or holds subject to the interest of a vendor or lessor under any
conditional sale agreement, a lease which would be characterized as a capital
lease in accordance with GAAP or other title retention agreement relating to
such asset.

            "LOAN ACCOUNT" has the meaning set forth in SECTION 2.5(b).

            "LOAN LIMIT" means, at any time, (A) the lesser of (i) the Borrowing
Base, and (ii) the Aggregate Commitment, minus (B) Reserves; provided, however,
that during the Interim Period, if, at any time, the Loan Limit exceeds the
Interim Amount, the Loan Limit as such time shall be deemed to be equal to the
Interim Amount.

            "LOANS" has the meaning set forth in SECTION 2.1(a), and includes
all Protective Advances.

            "LOCKUP AND VOTING AGREEMENT" means that certain Lockup and Voting
Agreement dated as of November 30, 2004 by and among Borrower, the other Credit
Parties, the Prepetition Lenders, and the Prepetition Noteholders.

            "MAJOR CASUALTY PROCEEDS" means (i) the aggregate insurance proceeds
received in connection with one or more related events under any Property
Insurance Policy or (ii) any award or other compensation with respect to any
condemnation of property (or any transfer or disposition of property in lieu of
condemnation).

            "MARGIN STOCK" has the meaning assigned thereto in Regulation U of
the Federal Reserve Board.

            "MATERIAL ADVERSE EFFECT" means, with respect to any event, act,
condition or occurrence of whatever nature (including any adverse determination
in any litigation, arbitration, or governmental investigation or proceeding),
whether singly or in conjunction with any other event or events, act or acts,
condition or conditions, occurrence or occurrences, whether or not related, a
material adverse change in, or a material adverse effect upon, any of (i) the
financial condition, operations, business, properties or prospects of the Credit
Parties, taken as a whole, (ii) the rights and remedies of Agent or DIP Lenders
under any DIP Loan Document, or the ability of any Credit Party to perform any
of its obligations under any DIP Loan Document to

                                       12

<PAGE>

which it is a party, (iii) the legality, validity or enforceability of any DIP
Loan Document, or (iv) the existence, perfection or priority of any security
interest granted in any DIP Loan Document or the value of any material
Collateral, other than, in any case, on account of the filing or pendency of the
Bankruptcy Cases.

            "MAXIMUM LAWFUL RATE" has the meaning set forth in SECTION 2.6(b).

            "NET BORROWING AVAILABILITY" means, at any time, the positive
amount, if any, by which the Loan Limit at such time exceeds the Total
Outstandings at such time.

            "NET CASH PROCEEDS" means, with respect to any transaction or event,
an amount equal to the cash proceeds received by the Credit Party from or in
respect of such transaction or event (including proceeds of any non-cash
proceeds of such transaction), less (i) any out-of-pocket expenses reasonably
incurred by such Person in connection therewith (including any attorneys' fees
reasonably allocated thereto) and (ii) in the case of an Asset Disposition, the
amount of any Debt secured by a Lien on the related asset and discharged from
the proceeds of such Asset Disposition and any taxes paid or payable by such
Person in respect of such Asset Disposition.

            "NORTHWESTERN NOTE AGREEMENT" means that Note Agreement, dated as of
November 1, 1995, pursuant to which Amcast Industrial Corporation has issued
certain $25,000,000 10.09% Senior Notes due November 7, 2003, as the same has
been and may from time to time hereafter be further amended, restated or
otherwise modified.

            "NOTE" has the meaning set forth in SECTION 2.4.

            "NOTICE OF BORROWING" means a written notice of a Responsible
Officer, appropriately completed and substantially in the form of EXHIBIT D
hereto, which shall include a written certification to the effect that (a) the
proposed Loan and its intended use are consistent with the terms of this DIP
Credit Agreement, and is necessary in order to satisfy any Credit Party's
obligations in the ordinary course of business or as otherwise permitted under
the DIP Loan Documents, (b) all conditions to borrowing contained in this DIP
Credit Agreement and the other DIP Loan Documents have been satisfied in all
material respects, and (c) no Event of Default or Default is in existence.

            "OBLIGATIONS" means all obligations, liabilities and indebtedness
(monetary or otherwise) of each Credit Party under this DIP Credit Agreement or
any other DIP Loan Document, in each case howsoever created, arising or
evidenced, whether direct or indirect, absolute or contingent, now or hereafter
existing, or due or to become due. The Obligations shall include, without
limitation, each of the Loans, and all obligations, liabilities and indebtedness
arising from or in connection with all Ancillary Services.

            "OPERATING EXPENSES" means for any period, all operating expenses of
the Credit Parties for such period as reflected in the applicable Budget.

            "ORGANIZATIONAL DOCUMENTS" means, with respect to any Person other
than a natural person, the documents by which such Person was organized (such as
a certificate of incorporation, certificate of limited partnership or articles
of organization, and including, without

                                       13

<PAGE>

limitation, any certificates of designation for preferred stock or other forms
of preferred equity) and which relate to the internal governance of such Person
(such as by-laws, a partnership agreement or an operating, limited liability or
members agreement).

            "ORIGINAL RESTRUCTURING AGREEMENT" means the Restructuring Agreement
dated as of July 15, 2002 by and among Amcast Industrial Corporation, as
borrower under the Prepetition Credit Agreement, the "Guarantors" named therein,
the Prepetition Agent on behalf of the Prepetition Banks, the Prepetition
Noteholders, the Prepetition Line of Credit Lenders and the Prepetition
Collateral Agent (as amended).

            "OUTSTANDING AMOUNT" means, as to any DIP Lender, the aggregate
principal amount of Loans made by such DIP Lender that are outstanding at the
time of determination.

            "PARTICIPANT" has the meaning set forth in SECTION 12.6(b).

            "PAYMENT ACCOUNT" means the account specified on the signature pages
hereof into which all payments by or on behalf of Borrower to Agent under the
DIP Loan Documents shall be made, or such other account as Agent shall from time
to time specify by notice to Borrower.

            "PBGC" means the Pension Benefit Guaranty Corporation and any entity
succeeding to any or all of its functions under ERISA.

            "PENSION PLAN" means any "employee pension benefit plan", as such
term is defined in Section 3(2) of ERISA, which is subject to Title IV of ERISA
(other than a Multiemployer Pension Plan), and to which Borrower or any member
of the Controlled Group may have any liability, including any liability by
reason of having been a substantial employer within the meaning of Section 4063
of ERISA at any time during the preceding five years, or by reason of being
deemed to be a contributing sponsor under Section 4069 of ERISA.

            "PERMITTED CONTEST" means a contest maintained in good faith by
appropriate proceedings promptly instituted and diligently conducted and with
respect to which such reserve or other appropriate provision, if any, as shall
be required in conformity with GAAP shall have been made; provided that
compliance with the obligation that is the subject of such contest is
effectively stayed during such challenge.

            "PERMITTED LIENS" has the meaning set forth in SECTION 5.2.

            "PERSON" means any natural person, corporation, limited liability
company, professional association, limited partnership, general partnership,
joint stock company, joint venture, association, company, trust, bank, trust
company, land trust, business trust, hedge fund or other organization, whether
or not a legal entity, and any government or agency or political subdivision
thereof.

            "PETITION DATE" means the date upon which the Credit Parties
commence a voluntary petition under the Bankruptcy Code or, alternatively, the
date on which an involuntary petition is filed against the Borrower.

                                       14

<PAGE>

            "PREPETITION AGENT" means Heritage Bank in its capacity as agent for
the Prepetition Banks under the Prepetition Credit Agreement, and the successors
of Heritage Bank in such capacity.

            "PREPETITION BANKS" means the "Banks" party to the Prepetition
Credit Agreement as of the Petition Date, together with their respective
permitted successors and assigns.

            "PREPETITION COLLATERAL" means all collateral securing the
Prepetition Obligations.

            "PREPETITION COLLATERAL AGENT" means Heritage Bank in its capacity
as collateral agent for the Prepetition Lenders and Prepetition Noteholders
pursuant to the terms of the Prepetition Collateral Agency Agreement, and the
successors of Heritage Bank in such capacity.

            "PREPETITION COLLATERAL AGENCY AGREEMENT" means that certain
Collateral Agency and Intercreditor Agreement dated as of June 5, 2001 by and
among Prepetition Agent on behalf of the Prepetition Banks, the Prepetition
Noteholders, the Prepetition Line of Credit Lenders and the Prepetition
Collateral Agent.

            "PREPETITION CREDIT AGREEMENT" means that certain Credit Agreement
dated as of August 14, 1997 by and among Amcast Industrial Corporation, as
borrower, the Prepetition Banks, as lenders, and the Prepetition Agent, as
administrative agent, as amended by the First Amendment dated as of October 7,
1997, the Second Amendment dated as of August 30, 1998, the Third Amendment
dated as of November 5, 1999, the Fourth Amendment dated as of November 28,
1999, the Fifth Amendment dated as of July 7, 2000, the Sixth Amendment dated as
of June 5, 2001, the Seventh Amendment dated as of July 23, 2001, the Eighth
Amendment dated as of August 6, 2001, the Original Restructuring Agreement, the
Amended and Restated Restructuring Agreement, the Amendment, Waiver and
Appointment of Successor Agent, and as further amended, restated, supplemented,
or otherwise modified from time to time prior to the Petition Date.

            "PREPETITION LENDERS" means the Prepetition Banks and the
Prepetition Line of Credit Lenders.

            "PREPETITION LINE OF CREDIT DOCUMENTS" means the promissory notes
and other agreements evidencing or relating to the Prepetition Line of Credit
Obligations.

            "PREPETITION LINE OF CREDIT LENDERS" means the Prepetition Banks
listed on Schedule 4 to the Prepetition Credit Agreement party to the
Prepetition Line of Credit Documents as of the Petition Date, together with
their successors and assigns, so long as such Prepetition Banks remain party to
the Prepetition Credit Agreement.

            "PREPETITION LINE OF CREDIT OBLIGATIONS" means all Debt or other
obligations incurred by Borrower to the Prepetition Line of Credit Lenders,
whether for principal, interest, fees, costs or indemnities, and whether now
existing or hereafter arising; provided, however, that the principal amount
owing to any Prepetition Line of Credit Lender shall not exceed the amount set
forth opposite such Prepetition Line of Credit Lender's name on Schedule 4 to
the Prepetition Credit Agreement.

                                       15

<PAGE>

            "PREPETITION LOAN DOCUMENTS" means the Prepetition Credit Agreement
and all other agreements, instruments or documents evidencing or securing the
Prepetition Credit Agreement, including the Prepetition Collateral Agency
Agreement.

            "PREPETITION LOANS" means loans made pursuant to the Prepetition
Credit Agreement.

            "PREPETITION NOTE AGREEMENTS" means the Northwestern Note Agreement
and the Principal Note Agreement.

            "PREPETITION NOTEHOLDERS" means the noteholders party to either the
Northwestern Note Agreement or the Principal Note Agreement as of the Petition
Date, together with their respective permitted successors and assigns.

            "PREPETITION TRANSACTION DOCUMENTS" means, collectively, the
Prepetition Line of Credit Documents, the Prepetition Loan Documents and the
Prepetition Note Agreements.

            "PREPETITION OBLIGATIONS" means all of the Debt and obligations
outstanding as of the Petition Date under the Prepetition Transaction Documents.

            "PRIME RATE" means a variable per annum rate, as of any date of
determination, equal to the rate from time to time published in the "Money
Rates" section of The Wall Street Journal as being the "Prime Rate" (or, if more
than one rate is published as the Prime Rate, then the highest of such rates).
The Prime Rate will change as of the date of publication in The Wall Street
Journal of a Prime Rate that is different from that published on the preceding
Business Day. In the event that The Wall Street Journal shall, for any reason,
fail or cease to publish the Prime Rate, Agent shall choose a reasonably
comparable index or source to use as the basis for the Prime Rate and provide
prompt written notice thereof to Borrower.

            "PRIME RATE MARGIN" means 1.5% per annum with respect to the
Obligations.

            "PRINCIPAL NOTE AGREEMENT" means that Note Agreement, dated as of
November 1, 1995, pursuant to which Amcast Industrial Corporation has issued
certain $25,000,000 10.09% Senior Notes due November 7, 2003, as the same has
been and may from time to time hereafter be further amended, restated or
otherwise modified.

            "PROCEEDS" means "proceeds" (as defined in Article 9 of the UCC) of
each Credit Party.

            "PROPERTY" means any right or interest in or to property or assets
of any kind whatsoever, whether real, personal or mixed and whether tangible or
intangible.

            "PROPERTY INSURANCE POLICY" means any insurance policy maintained by
any Credit Party covering losses with respect to tangible real or personal
property or improvements or losses from business interruption.

            "PRO RATA SHARE" means the Commitment Percentage of such DIP Lender,
or in the event the Aggregate Commitment shall have been terminated, the
percentage obtained by dividing such DIP Lender's Outstanding Amount by the
Total Outstandings.

                                       16

<PAGE>

            "PROTECTIVE ADVANCES" has the meaning set forth in SECTION
2.1(a)(ii).

            "REAL PROPERTY" means the real property owned or leased by any of
the Credit Parties, together with the related rights more particularly described
in the Information Certificate, including without limitation all buildings,
structures and other improvements thereon, and all licenses, easements and
appurtenances related thereto.

            "REIMBURSEMENT OBLIGATIONS" means, at any date, the obligations of
Borrower then outstanding to reimburse Agent or any DIP Lender for payments made
by Agent or any DIP Lender on behalf of the DIP Lenders.

            "REINVESTMENT RESERVE" has the meaning set forth in SECTION 2.3.

            "RELEASE" means depositing, spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping,
migrating or disposing.

            "REQUIRED DIP LENDERS" means at any time DIP Lenders holding (i) not
less than fifty-one percent (51%) of the Aggregate Commitment or (ii) if the
Aggregate Commitment has been terminated, not less than fifty-one percent (51%)
of the Total Outstandings.

            "RESERVES" means the Carve-Out, a reserve for professional and other
fees, the Reinvestment Reserve, and such other amounts as Agent may from time to
time establish and revise, in each case in the exercise of its reasonable credit
judgment exercised in good faith, reducing the amount of Loans which would
otherwise be available to Borrower under the lending formula(s) provided for
herein: (a) to reflect events, conditions, contingencies or risks which, as
determined by Agent in the good faith exercise of its reasonable credit
judgment, adversely affect, or could reasonably be expected to adversely affect,
any of: (i) the Collateral or any other property which is security for the
Obligations or its value, (ii) the assets, business or prospects of any Credit
Party or (iii) the Liens and other rights of Agent or any DIP Lender in the
Collateral (including the enforceability, perfection and priority thereof), (b)
to reflect Agent's good faith belief that any collateral report or financial
information furnished by or on behalf of any Credit Party to Agent is or may
have been incomplete, inaccurate or misleading in any material respect, (c) to
reflect accrued and unpaid interest and fees or (d) to reflect the amount of
existing tax liens, judgments, mechanic's liens and similar liens and claims, if
any. To the extent Agent may, in accordance with any other terms hereof, revise
the lending formula(s) used to determine the Borrowing Base or establish new
criteria or revise existing criteria for Eligible Accounts or Eligible
Inventory, Agent shall not also establish a Reserve for the same purpose. The
amount of any Reserve established by Agent shall have a reasonable relationship
to the event, condition or other matter which is the basis for such Reserve as
determined by Agent in good faith. In the event that the Agent establishes any
Reserve hereunder, the Agent shall have the ability, in its sole discretion, to
eliminate all or any portion of such Reserve.

            "RESPONSIBLE OFFICER" means any of the following officers of
Borrower: chief executive officer, chief financial officer or secretary.

            "RESTRICTED DISTRIBUTION" means as to any Person (i) any dividend or
other distribution on any equity interest in such Person (except those payable
solely in its equity interests of the same class) or (ii) any payment on account
of (a) the purchase, redemption,

                                       17

<PAGE>

retirement, defeasance, surrender or acquisition of any equity interests in such
Person or any claim respecting the purchase of sale of any equity interest in
such Person or (b) any option, warrant or other right to acquire any equity
interests in such Person.

            "SCHEDULED REAL PROPERTY" means the Real Property of the Credit
Parties listed on the Information Certificate.

            "SECURITY DOCUMENTS" means any agreement, document or instrument
heretofore executed, executed concurrently herewith or executed at any time
hereafter pursuant to which one or more Credit Parties or any other Person
either (i) Guarantees payment or performance of all or any portion of the
Obligations and/or (ii) provides, as security for all or any portion of the
Obligations, a Lien on any of its assets in favor of Agent for its own benefit
and the benefit of the DIP Lenders, as any or all of the same may be amended,
supplemented, restated or otherwise modified from time to time.

            "SETTLEMENT DATE" has the meaning set forth in SECTION 11.13(a)(ii).

            "STATED RATE" has the meaning set forth in SECTION 2.6(b).

            "STRUCTURING FEE" has the meaning provided in SECTION 2.2(e).

            "SUBORDINATED INTERCOMPANY DEBT" means any Debt of any Credit Party
owing to or from any other Credit Party.

            "SUPPORTING OBLIGATIONS" means "supporting obligations" (as defined
in Article 9 of the UCC) of each Credit Party.

            "TAXES" has the meaning set forth in SECTION 2.7.

            "TERMINATION DATE" has the meaning set forth in SECTION 2.1(c).

            "TOTAL OUTSTANDINGS" means the aggregate principal amount of Loans
made by all DIP Lenders that are outstanding at the time of determination.

            "UCC" means the Uniform Commercial Code of the State of Texas or of
any other state the laws of which are required to be applied in connection with
the perfection of security interests in any Collateral.

            "UNUSED LINE FEE" has the meaning set forth in SECTION 2.2(b).

            "U.S. TRUSTEE" means the Office of the United States Trustee.

            "VEHICLES" means motor vehicles now or hereafter owned by Borrower
and required to be titled pursuant to applicable law.

            SECTION 1.2 ACCOUNTING TERMS AND DETERMINATIONS.

            Unless otherwise specified herein, all accounting terms used herein
shall be interpreted, all accounting determinations hereunder (including without
limitation determinations

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<PAGE>

made pursuant to the exhibits hereto) shall be made, and all financial
statements required to be delivered hereunder shall be prepared on a
consolidated basis in accordance with GAAP applied on a basis consistent (except
for changes concurred with by Borrower's independent public accountants) with
the most recent audited consolidated financial statements of Borrower and its
consolidated Subsidiaries delivered to Agent and each of the DIP Lenders;
provided that if (a) Borrower shall object to determining compliance with the
provisions of this DIP Credit Agreement on such basis by written notice
delivered to Agent and the DIP Lenders at the time of delivery of required
financial statements due to any change in GAAP or the rules promulgated with
respect thereto or (b) Agent or the Required DIP Lenders shall so object in
writing by written notice delivered to Borrower within sixty (60) days after
delivery of such financial statements, then such calculations shall be made on a
basis consistent with the most recent financial statements delivered by Borrower
to the DIP Lenders as to which no such objection shall have been made. All
amounts used for purposes of financial calculations required to be made herein
shall be without duplication.

            SECTION 1.3 OTHER DEFINITIONAL PROVISIONS.

            References in this DIP Credit Agreement to "Articles", "Sections",
"Annexes" or "Exhibits" shall be to Articles, Sections, Annexes or Exhibits of
or to this DIP Credit Agreement unless otherwise specifically provided. Any term
defined herein may be used in the singular or plural. "Include", "includes" and
"including" shall be deemed to be followed by "without limitation". Except as
otherwise specified herein, references to any Person include the successors and
assigns of such Person. References "from" or "through" any date mean, unless
otherwise specified, "from and including" or "through and including",
respectively. References to any statute or act shall include all related current
regulations and all amendments and any successor statutes, acts and regulations.

                                   ARTICLE 2
                                     LOANS

            SECTION 2.1 LOANS.

            (a) Loans and Borrowings.

            (i) On the terms and subject to the conditions set forth herein,
each DIP Lender severally agrees to make revolving loans ("LOANS") to Borrower
from time to time as set forth herein equal to such DIP Lender's Commitment
Percentage of the Loans requested by Borrower hereunder, provided that after
giving effect thereto, the Total Outstandings shall not exceed the Loan Limit.
Within the foregoing limits and subject to the terms and conditions set forth
herein, Borrower may borrow under this SECTION 2.1(a)(i), prepay Loans as
required or permitted under SECTION 2.3, and reborrow Loans pursuant to this
SECTION 2.1(a)(i). Notwithstanding anything to the contrary in any of the DIP
Loan Documents, until entry of the Final Financing Order, Total Outstandings
shall not exceed the Interim Amount.

            (ii) Subject to the limitations set forth in this SECTION
2.1(a)(ii), Agent is hereby authorized by Borrower and DIP Lenders, from time to
time in Required DIP Lenders' sole discretion, (A) after the occurrence of a
Default or an Event of Default, or (B) at any time that any of the other
applicable conditions precedent set forth in SECTION 8.2 have not been

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<PAGE>

satisfied (including, without limitation, the condition precedent that the Total
Outstandings not exceed the Loan Limit plus any other then outstanding
Protective Advances), to make Loans to Borrower on behalf of the DIP Lenders
which Required DIP Lenders, in their reasonable business judgment, deem
necessary or desirable (1) to preserve or protect the business conducted by
Borrower, the Collateral, or any portion thereof, (2) to enhance the likelihood
of, or maximize the amount of, repayment of the Loans and other Obligations, or
(3) to pay any amount chargeable to Borrower pursuant to the terms of this DIP
Credit Agreement, interest payments and costs, fees and expenses as described in
SECTION 10.1 and SECTION 10.4 (any of the advances described in this SECTION
2.1(a)(ii) being hereafter referred to as "PROTECTIVE ADVANCES"); provided that
(i) Protective Advances may only be made with the prior approval of Required DIP
Lenders, except for Protective Advances applied in the manner described in the
preceding CLAUSE (3), (ii) the aggregate amount of Protective Advances
outstanding at any time, exclusive of those made pursuant to the preceding
CLAUSE (3), shall not exceed $1,000,000, and (iii) Agent shall be prohibited
from making Protective Advances to the extent the making thereof would cause the
Total Outstandings (inclusive of Protective Advances) to exceed the Aggregate
Commitment.

            (b) Advancing Loans.

            (i) Borrower shall deliver to Agent a Notice of Borrowing with
respect to each proposed Borrowing (other than Protective Advances), such Notice
of Borrowing to be delivered no later than 11:00 a.m. (Central time) on the
second (2nd) Business Day prior to such proposed Borrowing. Once given, a Notice
of Borrowing shall be irrevocable and Borrower shall be bound thereby.

            (ii) Borrower hereby authorizes DIP Lenders and Agent to make Loans
based on electronic notices made by any Person which Agent, in good faith,
believes to be acting on behalf of Borrower, but only after Agent shall have
established procedures acceptable to Agent for accepting electronic Notices of
Borrowing, as indicated by Agent's written confirmation thereof. Unless
otherwise specified in the applicable Notice of Borrowing, each Loan shall be
advanced to Borrower's Account.

            (c) Termination Date. The Aggregate Commitment shall terminate upon
the earliest to occur of (i) the Commitment Expiry Date, (ii) the date on which
Agent or Required DIP Lenders elect to terminate the Aggregate Commitment and/or
accelerate the Obligations pursuant to SECTION 9.2, (iii) the occurrence of an
Event of Default under SECTION 9.1(s), (iv) the sale of all or substantially all
of Borrower's assets in violation of SECTION 5.6, or (v) the effective date of a
confirmed Bankruptcy Plan that provides for payment in full of the Obligations
or is otherwise acceptable to Agent and the DIP Lenders (such earliest date
being the "TERMINATION DATE"), and there shall become due and Borrower shall pay
on the Termination Date, the entire outstanding principal amount of each Loan,
together with accrued and unpaid interest thereon to but excluding the
Termination Date.

            (d) Optional Commitment Reductions. Borrower may from time to time,
on at least three (3) Business Days prior written notice to Agent and the
Committee specifying the date and amount of such reduction, permanently reduce
the Aggregate Commitment in part; provided that each reduction shall be in an
amount equal to $1,000,000 or a higher integral multiple of $1,000,000.

                                       20

<PAGE>

            SECTION 2.2 INTEREST, INTEREST CALCULATIONS AND CERTAIN FEES.

            (a) Interest. The Loans and the other Obligations shall bear
interest at the sum of the Prime Rate plus the applicable Prime Rate Margin;
provided, however that if the Prime Rate ever falls below 4.75% per annum, the
Prime Rate shall be deemed to be equal to 4.75% per annum.

            (b) Unused Line Fee. From and following the Effective Date, Borrower
shall pay Agent, for the benefit of the DIP Lenders in accordance with their
respective Pro Rata Shares, a fee (the "UNUSED LINE FEE") in an amount equal to
(1) (A) the Aggregate Commitment less (B) the average daily balance of the Total
Outstandings during the preceding calendar month, multiplied by (2)
three-quarters of one percent (0.75%) per annum. The Unused Line Fee is to be
paid monthly in arrears on the last day of each calendar month.

            (c) Closing Fee. Borrower shall pay to Agent, for the benefit of the
DIP Lenders, in accordance with their respective Pro Rata Shares, a closing fee
(the "CLOSING FEE") equal to $200,000, which fee shall be due and payable as
follows: (1) $100,000 payable upon entry by the Bankruptcy Court of the Interim
Financing Order, and (2) $100,000 payable upon entry by the Bankruptcy Court of
the Final Financing Order.

            (d) Administration Fee. Borrower shall pay to Agent, for the sole
account of Agent, an administration fee (the "ADMINISTRATION FEE") equal to
$6,500 per month, payable upon entry by the Bankruptcy Court of the Interim
Financing Order and on the last day of each month. Each portion of the
Administration Fee shall be fully earned when due and payable and shall not be
subject to rebate, refund or proration for any reason.

            (e) Structuring Fees. Upon the effective date of the Bankruptcy
Plan, Borrower shall pay to Highland a structuring fee (the "STRUCTURING FEE")
equal to $400,000. The Structuring Fee shall be fully earned when due and
payable and shall not be subject to rebate, refund or proration for any reason.

            (f) Audit Fee. Borrower shall pay to Agent, an audit fee (the "AUDIT
FEE") equal to $800 per day per auditor for each audit performed by employees of
Agent or Highland plus reasonable out-of-pocket expenses (other than charges for
each auditor, which charges shall be satisfied from the $800 per day per auditor
amount) incurred by such auditors, plus all reasonable actual costs and charges
of third party appraisers and third party professionals engaged by Agent or
Highland to review, audit and monitor the assets of the Credit Parties.

            (g) Computation of Interest and Related Fees; Interest Payment
Dates. All interest and fees under each DIP Loan Document shall be calculated on
the basis of a three hundred sixty (360) day year for the actual number of days
elapsed. The date of funding of a Loan shall be included in the calculation of
interest. The date of payment of a Loan shall be excluded from the calculation
of interest. If a Loan is repaid on the same day that it is made, one (1) day's
interest shall be charged. Interest on all Loans is payable in arrears on the
last day of each calendar month and on the maturity of such Loans, whether by
acceleration or otherwise.

                                       21

<PAGE>

            SECTION 2.3 PREPAYMENTS.

            (a) Mandatory Prepayments. There shall become due and payable and
Borrower shall prepay the Loans to the extent required by SECTION 2.3(c) in the
following amounts and at the following times:

            (i) on the date on which any Credit Party (or Agent as loss payee or
assignee) receives any payment which constitutes Major Casualty Proceeds, an
amount equal to the amount of such payment; provided that the recipient (other
than Agent) of any payment which constitutes Major Casualty Proceeds may
reinvest such payment within thirty (30) days, in replacement assets comparable
to the assets giving rise to such payment; provided that the aggregate amount
which may be reinvested by each Credit Party pursuant to the preceding proviso
may not exceed $100,000 in any Fiscal Year without written consent from Required
DIP Lenders;

            (ii) on the date of receipt by any Credit Party of the proceeds from
the issuance and sale of any Debt (other than the Loans) or equity securities,
an amount equal to one hundred percent (100%) of the Net Cash Proceeds of such
issuance and sale;

            (iii) on the date of receipt by any Credit Party of the proceeds of
any Asset Disposition, an amount equal to one hundred percent (100%) of the Net
Cash Proceeds of such Asset Disposition; provided that such Credit Party may
reinvest such proceeds within sixty (60) days of receipt thereof in assets
useful in such Credit Party's business; provided that the aggregate amount which
may be reinvested by each Credit Party pursuant to the preceding proviso may not
exceed $100,000 in any Fiscal Year without written consent from Required DIP
Lenders; and

            (iv) if at any time the Total Outstandings exceed the Loan Limit,
then, on the next succeeding Business Day, Borrower shall repay the Loans in the
manner specified in SECTION 2.5(a) in an aggregate amount equal to such excess.

Any amounts permitted to be reinvested pursuant to the preceding CLAUSES (i) or
(iii) shall be immediately applied by Borrower as a prepayment against then
outstanding Loans, and Agent shall establish a reserve (the "REINVESTMENT
RESERVE") against the Loan Limit in an amount equal to such permitted
reinvestment amount. So long as no Event of Default then exists, Agent shall
permit Borrowings to finance the making of reinvestments permitted pursuant to
the preceding CLAUSES (i) or (iii), and shall concurrently reduce the
Reinvestment Reserve by an equivalent amount. Any remaining portion of the
Reinvestment Reserve shall be reduced to zero (0) upon the expiration of the
applicable reinvestment periods pursuant to the preceding CLAUSES (i) or (iii)
and the Aggregate Commitment shall be immediately reduced by such amount.

            (b) Optional Prepayments. Borrower may from time to time, subject to
the provisions of SECTION 2.3(c), prepay the Loans in whole or in part; provided
that any such partial prepayment shall be in an amount equal to $100,000 or a
higher integral multiple of $25,000. No payment pursuant to this SECTION 2.3(b)
shall reduce the amount of any payment required by SECTION 2.3(a).

                                       22

<PAGE>

            (c) All Prepayments. Prior to each prepayment pursuant to this
SECTION 2.3, Borrower shall give at least one (1) Business Day's prior written
notice to Agent specifying the date and amount of such prepayment and Agent
shall notify each DIP Lender of such notice. Any prepayment of a Loan shall
include interest on the principal amount being repaid. Any amounts prepaid under
this SECTION 2.3 shall be applied in accordance with SECTION 9.5 hereof.

            SECTION 2.4 NOTES.

            If requested by any DIP Lender, the portion of the Loans made by
such DIP Lender shall be evidenced by a promissory note executed by Borrower (a
"NOTE") in an original principal amount equal to such DIP Lender's Pro Rata
Share of the Aggregate Commitment.

            SECTION 2.5 GENERAL PROVISIONS REGARDING PAYMENT; LOAN ACCOUNT.

            (a) All payments to be made by Borrower under any DIP Loan Document,
including payments of principal and interest on the Loans, and all fees,
expenses, indemnities and reimbursements, shall be made without set-off or
counterclaim, in lawful money of the United States of America and in immediately
available funds. If any payment hereunder becomes due and payable on a day other
than a Business Day, such payment shall be extended to the next succeeding
Business Day and, with respect to payments of principal, interest thereon shall
be payable at the then applicable rate during such extension. Borrower shall
make all payments in immediately available funds to the Payment Account before
noon (Central time) on the date when due. Notwithstanding anything to the
contrary set forth in this SECTION 2.5(a), Agent shall be permitted, in its sole
discretion, but subject to the limitations set forth in SECTION 2.1(a)(ii), to
satisfy any of the payment obligations described in this SECTION 2.5(a) through
the making of Protective Advances.

            (b) Agent shall maintain a loan account (the "LOAN ACCOUNT") on its
books to record Loans and other extensions of credit made by the DIP Lenders
hereunder or under any other DIP Loan Document, and all payments thereon made by
Borrower. All entries in the Loan Account shall be made in accordance with
Agent's customary accounting practices as in effect from time to time. The
balance in the Loan Account, as recorded on Agent's most recent printout or
other written statement, shall be conclusive and binding evidence of the amounts
due and owing to Agent by Borrower absent clear and convincing evidence to the
contrary, subject to review by the Bankruptcy Court; provided that any failure
to so record or any error in so recording shall not limit or otherwise affect
Borrower's duty to pay all amounts owing hereunder or under any other DIP Loan
Document. Unless Borrower notifies Agent in writing of any objection to any such
printout or statement (specifically describing the basis for such objection)
within thirty (30) days after the date of receipt thereof, it shall be deemed
final, binding and conclusive upon Borrower in all respects as to all matters
reflected therein.

            SECTION 2.6 MAXIMUM INTEREST.

            (a) In no event shall the interest charged with respect to the Loans
or any other Obligations of Borrower under any DIP Loan Document exceed the
maximum amount permitted under the laws of the State of Texas or of any other
applicable jurisdiction.

                                       23

<PAGE>

            (b) Notwithstanding anything to the contrary herein or elsewhere, if
at any time the rate of interest payable hereunder or under any Note or other
DIP Loan Document (the "STATED RATE") would exceed the highest rate of interest
permitted under any applicable law to be charged (the "MAXIMUM LAWFUL RATE"),
then for so long as the Maximum Lawful Rate would be so exceeded, the rate of
interest payable shall be equal to the Maximum Lawful Rate; provided that if at
any time thereafter the Stated Rate is less than the Maximum Lawful Rate,
Borrower shall, to the extent permitted by law, continue to pay interest at the
Maximum Lawful Rate until such time as the total interest received is equal to
the total interest which would have received had the Stated Rate been (but for
the operation of this provision) the interest rate payable. Thereafter, the
interest rate payable shall be the Stated Rate unless and until the Stated Rate
again would exceed the Maximum Lawful Rate, in which event this provision shall
again apply.

            (c) In no event shall the total interest received by any DIP Lender
exceed the amount which it could lawfully have received had the interest been
calculated for the full term hereof at the Maximum Lawful Rate. If,
notwithstanding the prior sentence, any DIP Lender has received interest
hereunder in excess of the Maximum Lawful Rate, such excess amount shall be
applied to the reduction of the principal balance of the Loans or to other
amounts (other than interest) payable hereunder, and if no such principal or
other amounts are then outstanding, such excess or part thereof remaining shall
be paid to Borrower.

            (d) In computing interest payable with reference to the Maximum
Lawful Rate applicable to any DIP Lender, such interest shall be calculated at a
daily rate equal to the Maximum Lawful Rate divided by the number of days in the
year in which such calculation is made.

            SECTION 2.7 TAXES.

            (a) All payments of principal and interest on the Loans and all
other amounts payable hereunder shall be made free and clear of and without
deduction for any present or future income, excise, stamp, documentary, excise,
property or franchise taxes and other taxes, fees, duties, levies, withholdings
or other charges of any nature whatsoever imposed by any taxing authority,
excluding taxes imposed on or measured by Agent's or any DIP Lender's net income
by the jurisdictions under which Agent or such DIP Lender is organized or
conducts business (all non-excluded items being called "TAXES"). If any
withholding or deduction from any payment to be made by Borrower hereunder is
required in respect of any Taxes pursuant to any applicable law, rule or
regulation, then Borrower will: (a) pay directly to the relevant authority the
full amount required to be so withheld or deducted; (b) promptly forward to
Agent an official receipt or other documentation satisfactory to Agent
evidencing such payment to such authority; and (c) pay to Agent for the account
of Agent and DIP Lenders such additional amount or amounts as is necessary to
ensure that the net amount actually received by Agent and each DIP Lender will
equal the full amount Agent and such DIP Lender would have received had no such
withholding or deduction been required. If any Taxes are directly asserted
against Agent or any DIP Lender with respect to any payment received by Agent or
such DIP Lender hereunder, Agent or such DIP Lender may pay such Taxes and
Borrower will promptly pay such additional amounts (including any penalty,
interest or expense) as is necessary in order that the net amount received by
such Person after the payment of such Taxes (including any Taxes on such
additional amount) shall equal the amount such Person would have received had
such Taxes not been asserted so long as such amounts have accrued on or after
the day which is one hundred

                                       24

<PAGE>

eighty (180) days prior to the date on which Agent or such DIP Lender first made
demand therefor.

            (b) If Borrower fail to pay any Taxes when due to the appropriate
taxing authority or fails to remit to Agent, for the account of Agent and the
respective DIP Lenders, the required receipts or other required documentary
evidence, Borrower shall indemnify Agent and DIP Lenders for any incremental
Taxes, interest or penalties that may become payable by Agent or any DIP Lender
as a result of any such failure.

            (c) Each DIP Lender that (i) is organized under the laws of a
jurisdiction other than the United States of America and (ii)(A) is a party
hereto on the Closing Date or (B) becomes an assignee of an interest under this
DIP Credit Agreement under SECTION 12.6(a) after the Closing Date (unless such
DIP Lender was already a DIP Lender hereunder immediately prior to such
assignment) shall execute and deliver to Borrower and Agent one or more (as
Borrower or Agent may reasonably request) Forms W-8ECI, W-8BEN, W-8IMY (as
applicable) or other applicable form, certificate or document prescribed by the
United States Internal Revenue Service certifying as to such DIP Lender's
entitlement to exemption from withholding or deduction of Taxes. Borrower shall
not be required to pay additional amounts to any DIP Lender pursuant to this
SECTION 2.7 to the extent that the obligation to pay such additional amounts
would not have arisen but for the failure of such DIP Lender to comply with this
paragraph.

            SECTION 2.8 CAPITAL ADEQUACY.

            If any DIP Lender shall reasonably determine that any change in, or
the adoption or phase-in of, any applicable law, rule or regulation regarding
capital adequacy, 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, or the compliance by any DIP
Lender or any Person controlling such DIP Lender 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, has or would have the effect of
reducing the rate of return on such DIP Lender's or such controlling Person's
capital as a consequence of such DIP Lender's obligations hereunder to a level
below that which such DIP Lender or such controlling Person could have achieved
but for such change, adoption, phase-in or compliance (taking into consideration
such DIP Lender's or such controlling Person's policies with respect to capital
adequacy) by an amount deemed by such DIP Lender or such controlling Person to
be material, then from time to time, upon demand by such DIP Lender (which
demand shall be accompanied by a statement setting forth the basis for such
demand and a calculation of the amount thereof in reasonable detail, a copy of
which shall be furnished to Agent), Borrower shall pay to such DIP Lender such
additional amount as will compensate such DIP Lender or such controlling Person
for such reduction, so long as such amounts have accrued on or after the day
which is one hundred eighty (180) days prior to the date on which such DIP
Lender first made demand therefor.

            SECTION 2.9 ANCILLARY SERVICES.

            Borrower may from time to time request, and Agent or any DIP Lender
that is an Affiliate of a Designated DIP Lender Affiliate may, in its sole
discretion, from time to time

                                       25

<PAGE>

arrange for Borrower to obtain from Agent or any Designated DIP Lender
Affiliate, Ancillary Services although Borrower is not required to do so. To the
extent Ancillary Services are provided, Borrower agrees to indemnify and hold
Agent and DIP Lenders harmless from any and all costs and obligations now or
hereafter incurred by Agent or any DIP Lenders which arise from the indemnity
given by Agent or any DIP Lender to any Designated Lender Affiliates related to
such Ancillary Services. The agreement contained in this SECTION 2.9 shall
survive termination of this DIP Credit Agreement. Borrower acknowledges and
agrees that the obtaining of Ancillary Services (a) is in the sole and absolute
discretion of Agent and each Designated DIP Lender Affiliate, and (b) is subject
to all rules and regulations of Agent and each applicable Designated DIP Lender
Affiliate.

                                   ARTICLE 3
                          REPRESENTATION AND WARRANTIES

            To induce Agent and DIP Lenders to enter into this DIP Credit
Agreement and to make the Loans and other credit accommodations contemplated
hereby, Borrower hereby represents and warrants to Agent and each DIP Lender
that:

            SECTION 3.1 EXISTENCE AND POWER.

            Except as set forth in the Information Certificate, each Credit
Party is an entity as specified on the Information Certificate, duly organized,
validly existing and in good standing under the laws of the jurisdiction
specified on the Information Certificate, has an organizational identification
number (if any) as specified on the Information Certificate, and has all powers
and all governmental licenses, authorizations, consents and approvals required
to carry on its business as now conducted, except where the failure to have such
licenses, authorizations, consents and approvals could not reasonably be
expected to have a Material Adverse Effect. Each Credit Party is qualified to do
business as a foreign entity in each jurisdiction in which it is required to be
so qualified, which jurisdictions as of the Closing Date are specified on the
Information Certificate, except where the failure to be so qualified could not
reasonably be expected to have a Material Adverse Effect.

            SECTION 3.2 ORGANIZATION AND GOVERNMENTAL AUTHORIZATION; NO
CONTRAVENTION.

            The execution, delivery and performance by each Credit Party of the
DIP Loan Documents to which it is a party are within its powers, have been duly
authorized by all necessary action pursuant to its Organizational Documents,
require no further action by or in respect of, or filing with, any governmental
body, agency or official that has not been obtained or taken (except for the
entry of the Financing Orders), will not result in the creation of any Lien
(other than Liens permitted under SECTION 5.2) and, upon entry of the applicable
Financing Order, do not violate, conflict with or cause a breach or a default
under any provision of applicable law or regulation or of the Organizational
Documents of any Credit Party or of any agreement entered into after the
Petition Date, judgment, injunction, order, decree or other instrument entered
into after the Petition Date binding upon it, except for such violations,
conflicts, breaches or defaults as could not reasonably be expected to have a
Material Adverse Effect.

                                       26

<PAGE>

            SECTION 3.3 BINDING EFFECT.

            Each of the DIP Loan Documents to which any Credit Party is a party
constitutes a valid and binding agreement or instrument of such Credit Party,
enforceable against such Credit Party in accordance with its respective terms,
subject to the Financing Order.

            SECTION 3.4 CAPITALIZATION.

            The authorized equity securities of each of the Credit Parties as of
the Closing Date is as set forth on the Information Certificate. All issued and
outstanding equity securities of each of the Credit Parties are duly authorized
and validly issued, fully paid, nonassessable, and other than with respect to
the equity securities of Borrower, free and clear of all Liens other than Liens
in favor of Agent for the benefit of Agent and the DIP Lenders and Liens on the
Prepetition Collateral securing the Prepetition Obligations, and such equity
securities were issued in compliance with all applicable state, federal and
foreign laws concerning the issuance of securities. The identity as of the
Closing Date, of the holders of the equity securities of each of the Credit
Parties and the percentage of their fully-diluted ownership of the equity
securities of each of the Credit Parties as of the Closing Date is set forth on
the Information Certificate; provided that, with respect to Borrower, the
Information Certificate shows the identity and ownership of equity holders that
hold five percent (5%) or more of the equity securities of Borrower or who are
officers or directors of Borrower. No shares of the capital stock or other
equity securities of any Credit Party, other than those described above, are
issued and outstanding. Except as set forth on the Information Certificate, as
of the Closing Date there are no preemptive or other outstanding rights,
options, warrants, conversion rights or similar agreements or understandings for
the purchase or acquisition from any Credit Party of any equity securities of
any such entity.

            SECTION 3.5 FINANCIAL INFORMATION.

            (a) The consolidated balance sheet of the Credit Parties as of
December 31, 2003 and the related consolidated statements of operations,
stockholders' equity (or comparable calculation, if such Person is not a
corporation) and cash flows for the fiscal year then ended, reported on by Ernst
& Young, copies of which have been delivered to Agent, fairly present, in
conformity with GAAP, the consolidated financial position of Borrower and its
consolidated Subsidiaries as of such date and their consolidated results of
operations, changes in stockholders' equity (or comparable calculation) and cash
flows for such period.

            (b) The unaudited consolidated balance sheet of Borrower and its
consolidated Subsidiaries as of September 30, 2004 and the related unaudited
consolidated statements of operations and cash flows for the 3 fiscal months
then ended, copies of which have been delivered to Agent, fairly present, in
conformity with GAAP applied on a basis consistent with the financial statements
referred to in SECTION 3.5(a), the consolidated financial position of Borrower
and its consolidated Subsidiaries as of such date and their consolidated results
of operations and cash flows for the 3 fiscal months then ended (subject to
normal year-end adjustments and the absence of footnote disclosures).

                                       27

<PAGE>

            (c) The information contained in the most recently delivered
Borrowing Base Certificate is complete and correct and the amounts shown therein
as "Eligible Receivables" and "Eligible Inventory" have been determined as
provided in the DIP Loan Documents.

            SECTION 3.6 LITIGATION.

            Except as set forth in the Information Certificate, and other than
the Bankruptcy Cases, as of the Closing Date, there are no (a) lawsuits,
actions, investigations, or other proceedings pending or, to any Credit Party's
knowledge, threatened against any Credit Party, or in respect of which any
Credit Party may have any liability, in any court or before any governmental
authority, arbitration board, or other tribunal; (b) orders, writs, injunctions,
judgments, or decrees of any court or government agency or instrumentality to
which any Credit Party is a party or by which the property or assets of any
Credit Party are bound; or (c) grievances, disputes, or controversies
outstanding with any union or other organization of the employees of any Credit
Party or threats of work stoppage, strike, or pending demands for collective
bargaining, in which an adverse decision could reasonably be expected to have a
Material Adverse Effect or which in any manner draws into question the validity
of any of the DIP Loan Documents.

            SECTION 3.7 OWNERSHIP OF PROPERTY.

            Each Credit Party is the lawful owner of, has good and defensible
title to and is in lawful possession of, or has valid leasehold interests in,
all properties and other assets (real or personal, tangible, intangible or
mixed) purported to be owned or leased (as the case may be) by such Person,
except as disposed of in accordance with SECTION 5.6, and such properties and
assets are free and clear of all Liens, except those permitted under SECTION 5.2
hereto.

            SECTION 3.8 NO DEFAULT.

            No Default or Event of Default has occurred and is continuing; and
no Credit Party is in breach or default under or with respect to any contract,
agreement, lease or other instrument to which it is a party or by which its
property is bound or affected (other than solely as a result of the filing of
the Bankruptcy Cases), which breach or default could reasonably be expected to
have a Material Adverse Effect.

            SECTION 3.9 LABOR MATTERS.

            As of the Closing Date, there are no strikes or other labor disputes
pending or, to any Credit Party's knowledge, threatened against any Credit
Party. Hours worked and payments made to the employees of the Credit Parties
have not been in violation of the Fair Labor Standards Act or any other
applicable law dealing with such matters. All payments due from the Credit
Parties, or for which any claim may be made against any of them, on account of
wages and employee and retiree health and welfare insurance and other benefits
have been paid or accrued as a liability on their books, as the case may be. The
consummation of the transactions contemplated by the DIP Loan Documents will not
give rise to a right of termination or right of renegotiation on the part of any
union under any collective bargaining agreement to which it is a party or by
which it is bound.

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            SECTION 3.10 REGULATED ENTITIES.

            No Credit Party is an "investment company" or a company "controlled"
by an "investment company" or a "subsidiary" of an "investment company," all
within the meaning of the Investment Company Act of 1940. No Credit Party is a
"holding company", or a "subsidiary company" of a "holding company", or an
"affiliate" of a "holding company" or of a "subsidiary company" of a "holding
company", within the meaning of the Public Utility Holding Company Act of 1935.

            SECTION 3.11 MARGIN REGULATIONS.

            None of the proceeds from the Loans have been or will be used,
directly or indirectly, for the purpose of purchasing or carrying any Margin
Stock, for the purpose of reducing or retiring any indebtedness which was
originally incurred to purchase or carry any Margin Stock or for any other
purpose which might cause any of the Loans to be considered a "purpose credit"
within the meaning of Regulation T, U or X of the Federal Reserve Board.

            SECTION 3.12 COMPLIANCE WITH LAWS

            As of the Closing Date, each Credit Party is in compliance with the
requirements of all applicable laws, ordinances, rules, regulations and
requirements of governmental authorities, except where the noncompliance with
which could not reasonably be expected to have a Material Adverse Effect.

            SECTION 3.13 TAXES.

            All Federal, state and local tax returns, reports and statements
required to be filed by or on behalf of each Credit Party have been filed with
the appropriate governmental agencies in all jurisdictions in which such
returns, reports and statements are required to be filed, and all Taxes
(including real property Taxes) and other charges shown to be due and payable in
respect thereof have been timely paid prior to the date on which any fine,
penalty, interest, late charge or loss may be added thereto for nonpayment
thereof, except where subject to a Permitted Contest. All state and local sales
and use Taxes required to be paid by each Credit Party have been paid except
where subject to a Permitted Contest. All Federal and state returns have been
filed by each Credit Party for all periods for which returns were due with
respect to employee income tax withholding, social security and unemployment
taxes, and the amounts shown thereon to be due and payable have been paid in
full or adequate provisions therefor have been made except where subject to a
Permitted Contest.

            SECTION 3.14 COMPLIANCE WITH ERISA.

            (a) All required reports and documents with respect to any Pension
Plan have been properly filed with the appropriate governmental agencies. All
Pension Plans (and related trusts and insurance contracts) comply in form and in
operation in all material respects with the current applicable provisions of
ERISA and the Code. With respect to each Pension Plan, there have been no
non-exempt prohibited transactions as defined in Section 406 of ERISA or Section
4975 of the Code that have not been reported and corrected.

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<PAGE>

            (b) During the twelve (12) fiscal month period prior to the Closing
Date or the making of any Loan, (i) no steps have been taken to terminate any
Pension Plan and (ii) no contribution failure has occurred with respect to any
Pension Plan sufficient to give rise to a Lien under Section 302(f) of ERISA or
Regulation 2510.3 - 102(b)(1) of ERISA. No condition exists or event or
transaction has occurred with respect to any Pension Plan which could result in
the incurrence by any Credit Party of any material liability, fine or penalty.
No Credit Party has incurred liability to the PBGC (other than for current
premiums) with respect to any employee Pension Plan. All contributions (if any)
have been made to any Multiemployer Pension Plan that are required to be made by
any Credit Party or any other member of the Controlled Group under the terms of
the plan or of any collective bargaining agreement or by applicable law; no
Credit Party nor any member of the Controlled Group has withdrawn or partially
withdrawn from any Multiemployer Pension Plan, incurred any withdrawal liability
with respect to any such plan or received notice of any claim or demand for
withdrawal liability or partial withdrawal liability from any such plan, and no
condition has occurred which, if continued, could result in a withdrawal or
partial withdrawal from any such plan, and no Credit Party nor any member of the
Controlled Group has received any notice that any Multiemployer Pension Plan is
in reorganization, that increased contributions may be required to avoid a
reduction in plan benefits or the imposition of any excise tax, that any such
plan is or has been funded at a rate less than that required under Section 412
of the Code, that any such plan is or may be terminated, or that any such plan
is or may become insolvent.

            SECTION 3.15 BROKERS.

            Except as set forth in the Information Certificate, no broker,
finder or other intermediary retained by any Credit Party has brought about the
obtaining, making or closing of the transactions contemplated by the DIP Loan
Documents, and no Credit Party has or will have any obligation to any Person in
respect of any finder's or brokerage fees in connection herewith or therewith.

            SECTION 3.16 BUDGETS.

            Each Budget, at the time prepared and delivered to Agent, was
prepared by the Credit Parties' financial personnel and represents the good
faith belief of such Persons at such time as to the probable course of the
Credit Parties' business and financial affairs, over the periods shown therein,
subject to the assumptions stated therein.

            SECTION 3.17 EMPLOYMENT, EQUITYHOLDERS AND SUBSCRIPTION AGREEMENTS.

            Except for the DIP Loan Documents and the other agreements set forth
in the Information Certificate, as of the Closing Date there are no (i)
employment agreements covering the management of any Credit Party, (ii)
collective bargaining agreements or other labor agreements covering any
employees of any Credit Party, (iii) agreements, in any way material to any
Credit Party, for managerial, consulting or similar services to which any Credit
Party is a party or by which it is bound or (iv) material agreements regarding
any Guarantor, its assets or operations or any investment therein to which any
of its equityholders is a party or by which it is bound.

                                       30

<PAGE>

            SECTION 3.18 COMPLIANCE WITH ENVIRONMENTAL REQUIREMENTS; NO
HAZARDOUS MATERIALS.

            Except in each case as set forth on the Information Certificate, to
the knowledge of Borrower:

            (a) No Hazardous Materials are located on any properties now or
previously owned, leased or operated by any Credit Party or have been released
into the environment, or deposited, discharged, placed or disposed of at, on,
under or near any of such properties in a manner that would require the taking
of any remedial action under any Environmental Law or which could reasonably be
expected to have a Material Adverse Effect. No portion of any such property is
being used, or has been used at any previous time, for the disposal, storage,
treatment, processing or other handling of Hazardous Materials in violation of
any Environmental Law which could reasonably be expected to have a Material
Adverse Effect, nor is any such property affected by any Hazardous Materials
Contamination which could reasonably be expected to have a Material Adverse
Effect.

            (b) No underground storage tanks are located on any properties now
or previously owned, leased or operated by any Credit Party, or were located on
any such property and subsequently removed or filled.

            (c) None of the following are or will hereafter be located in or on,
or constitute part of, any property now or previously owned, leased or operated
by any Credit Party in any significant quantity: friable asbestos or friable
asbestos-containing material in any form or condition; urea formaldehyde
insulation; transformers or other Equipment which contain dielectric fluid
containing polychlorinated biphenyls; or leaded paint, except as may be brought
on such property for use or sale in connection with the current use of such
property.

            (d) There are no existing or closed sanitary landfills, solid waste
disposal sites, or hazardous waste treatment, storage or disposal facilities on
any property now or previously owned, leased or operated by any Credit Party.

            (e) No notice, notification, demand, request for information,
complaint, citation, summons, investigation, administrative order, consent order
and agreement, litigation or settlement with respect to more than an
insignificant quantity of Hazardous Materials or Hazardous Materials
Contamination is in existence or, to Borrower's knowledge, proposed, threatened
or anticipated with respect to or in connection with the operation of any
properties now or previously owned, leased or operated by any Credit Party. All
such properties and their existing and prior uses, and any disposal of Hazardous
Materials from any thereof, comply and at all times have complied with all
Environmental Laws applicable at the time thereof, except to the extent that the
failure to so comply would not reasonably be expected to have a Material Adverse
Effect. There is no condition on any of such properties which is in violation in
any material respect of any Environmental Laws and no Credit Party has received
any communication from or on behalf of any governmental authority that any such
condition exists.

            (f) There has been no environmental investigation, study, audit,
test, review or other analysis conducted of which Borrower has knowledge in
relation to the current or prior business of Borrower or any property or
facility now or previously owned, leased or operated by

                                       31

<PAGE>

any Credit Party which has not been delivered to Agent or a consultant retained
by Agent, other than prior environmental reports relating to facilities for
which current reports have been delivered and other than environmental reports
relating to facilities disposed of by Borrower prior to the Closing Date.

            (g) For purposes of this SECTION 3.18, each Credit Party shall be
deemed to include any business or business entity (including a corporation)
which is, in whole or in part, a predecessor of such Credit Party.

            SECTION 3.19 INTELLECTUAL PROPERTY.

            Each Credit Party owns, is licensed to use or otherwise has the
right to use, all Intellectual Property that is material to the condition
(financial or other), business or operations of such Credit Party and all
Intellectual Property owned or licensed by any Credit Party as of the Closing
Date and registered with the U.S. government, any foreign government or any
agency or department thereof or for which applications are pending in the name
of any Credit Party is set forth on the Information Certificate. All material
Intellectual Property of each Credit Party is fully protected and/or duly and
properly registered, filed or issued in the appropriate office and jurisdictions
for such registrations, filings or issuances. To Borrower's knowledge, each
Credit Party conducts its business without infringement or claim of infringement
of any Intellectual Property rights of others and there is no infringement or
claim of infringement by others of any Intellectual Property rights of any
Credit Party, which infringement or claim of infringement could reasonably be
expected to have a Material Adverse Effect.

            SECTION 3.20 REAL PROPERTY INTERESTS.

            Except for the ownership, leasehold or other interests set forth in
the Information Certificate, no Credit Party has, as of the Closing Date, any
ownership, leasehold or other interest in real property.

            SECTION 3.21 MATTERS RELATING TO COLLATERAL.

            (a) The entry of the Financing Order is effective to create in favor
of Agent, for the benefit of DIP Lenders, as security for the Obligations, a
valid first priority Lien on all of the Collateral, subject only to the Liens
described in the Financing Order as being senior to the Obligations.

            (b) Except for the Financing Order, no authorization, approval or
other action by, and no notice to or filing with, any government authority is
required for either (i) the pledge or grant by each Credit Party of the Liens
purported to be created in favor of Agent pursuant to this DIP Credit Agreement
or any of the Security Documents or (ii) the exercise by Agent of any rights or
remedies in respect of any Collateral (whether specifically granted or created
pursuant to this DIP Credit Agreement, any of the Security Documents or created
or provided for by applicable law), except for any necessary filings or
recordings and except as may be required, in connection with the disposition of
any pledged Collateral, by laws generally affecting the offering and sale of
securities.

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<PAGE>

            SECTION 3.22 CONTINUED BUSINESS.

            Other than as a result of the filing and pendency of the Bankruptcy
Cases, there exists no actual, pending, or, to Borrower's knowledge, any
threatened termination, cancellation or limitation of, or any modification or
change in the business relationship of any Credit Party and any customer or
supplier, or any group of customers or suppliers, whose purchases or supplies,
individually or in the aggregate, are material to the business of any Credit
Party, and there exists no present condition or state of facts or circumstances
which would materially affect adversely any Credit Party in any respect or
prevent a Credit Party from conducting such business or the transactions
contemplated by this Agreement in substantially the same manner which it was
theretofore conducted.

            SECTION 3.23 INSURANCE.

            Each Credit Party maintains with financially sound and reputable
insurers insurance with coverage and limits as required by law and as is
customary with persons engaged in the same business as such Credit Party.

            SECTION 3.24 FULL DISCLOSURE.

            None of the information (financial or otherwise) furnished by or on
behalf of any Credit Party to Agent or any DIP Lender in connection with the
consummation of the transactions contemplated by the DIP Loan Documents,
including without limitation the information set forth in the Information
Certificate, contains any untrue statement of a material fact or omits to state
a material fact necessary to make the statements contained herein or therein not
misleading in the light of the circumstances under which such statements were
made. After due inquiry by Borrower, there is no known fact which Borrower has
not disclosed to Agent and the DIP Lenders which has a material adverse effect
on the business, operations or condition (financial or otherwise) of any Credit
Party. The Information Certificate is true, correct and complete as of the date
of this DIP Credit Agreement.

            SECTION 3.25 CONSENTS OR APPROVALS.

            No consent, approval or authorization of, or filing, registration or
qualification with, any governmental authority or any other Person is required
to be obtained or completed by any Credit Party in connection with the
execution, delivery or performance of any of the DIP Loan Documents which has
not already been obtained or completed, other than the consents, authorizations
and approvals of the Bankruptcy Court.

            SECTION 3.26 REPRESENTATIONS AND WARRANTIES INCORPORATED FROM OTHER
DIP LOAN DOCUMENTS.

            As of the Closing Date, each of the representations and warranties
made in the other DIP Loan Documents by each Credit Party is true and correct in
all material respects, and such representations and warranties are hereby
incorporated herein by reference with the same effect as though set forth in
their entirety herein, as qualified therein, except to the extent that such
representation or warranty relates to a specific date, in which case such
representation and warranty shall be true as of such earlier date.

                                       33

<PAGE>

                                   ARTICLE 4
                              AFFIRMATIVE COVENANTS

            Borrower agrees that, so long as any Credit Exposure exists:

            SECTION 4.1 FINANCIAL STATEMENTS AND OTHER REPORTS.

            Each Credit Party will maintain a system of accounting established
and administered in accordance with sound business practices to permit
preparation of financial statements in accordance with GAAP and to provide the
information required to be delivered to the DIP Lenders hereunder, and will
deliver to Agent, and, in the case of the deliveries required by PARAGRAPHS (a)
through (f) and (l) through (t), each DIP Lender:

            (a) as soon as practicable and in any event within thirty (30) days
after the end of each fiscal month (including the last fiscal month of
Borrower's Fiscal Year), a consolidated and consolidating balance sheet of the
Credit Parties as at the end of such fiscal month and the related consolidated
statements of operations and cash flows for such fiscal month, and for the
portion of the Fiscal Year ended at the end of such fiscal month setting forth
in each case in comparative form the figures for the corresponding periods of
the previous Fiscal Year and the figures for such fiscal month and for such
portion of the Fiscal Year ended at the end of such fiscal month set forth in
the annual operating and capital expenditure budgets and cash flow forecast
delivered pursuant to SECTION 4.1(l), all in reasonable detail and certified by
a Financial Officer as fairly presenting the financial condition and results of
operations of the Credit Parties and as having been prepared in accordance with
GAAP applied on a basis consistent with the audited financial statements of
Borrower, subject to changes resulting from audit and normal year-end
adjustments and the absence of footnote disclosures; notwithstanding the
foregoing, for each fiscal month that is the last month of Borrower's Fiscal
Year, Borrower shall (i) within thirty (30) days after the end of such month,
deliver to Agent and each DIP Lender a preliminary unaudited earnings statement
and (ii) within sixty (60) days after the end of such month, deliver to Agent
and each DIP Lender the other financial statements and reports described
hereinabove;

            (b) as soon as available and in any event within ninety (90) days
after the end of each Fiscal Year, a consolidated and consolidating balance
sheet of the Credit Parties as of the end of such Fiscal Year and the related
consolidated and consolidating statements of operations, stockholders' equity
and cash flows for such Fiscal Year, setting forth in each case in comparative
form the figures for the previous Fiscal Year and the figures for such Fiscal
Year set forth in the annual operating and capital expenditure budgets and cash
flow forecast delivered pursuant to SECTION 4.1(l), certified (solely with
respect to such consolidated statements (and not with respect to such annual
operating and capital expenditure budgets and cash flow forecasts)) without
qualification (except for a going concern qualification) by independent public
accountants acceptable to Agent of nationally recognized standing;

            (c) together with each delivery of financial statements pursuant to
SECTIONS 4.1(a) and 4.1(b), a Compliance Certificate;

            (d) together with each delivery of financial statements pursuant to
4.1(b) above, a written statement by the independent public accountants giving
the report thereon

                                       34

<PAGE>

stating that their audit examination has included a review of the terms of this
DIP Credit Agreement as it relates to accounting matters;

            (e) promptly upon receipt thereof, copies of all reports submitted
to any Credit Party by independent public accountants in connection with each
annual, interim or special audit of the financial statements of any Credit Party
made by such accountants, including the comment letter submitted by such
accountants to management in connection with their annual audit;

            (f) promptly upon their becoming available, copies of (i) all
financial statements, reports, notices and proxy statements sent or made
available generally by any Credit Party to its security holders, (ii) all
regular and periodic reports and all registration statements and prospectuses
filed by any Credit Party with any securities exchange or with the Securities
and Exchange Commission or any successor and (iii) all press releases and other
statements made available generally by any Credit Party concerning material
developments in the business of any Credit Party;

            (g) promptly upon any officer of any Credit Party obtaining
knowledge (i) of the existence of any Event of Default or Default, or becoming
aware that the holder of any Debt of any Credit Party has given any notice or
taken any other action with respect to a claimed default thereunder, (ii) of any
change in any Credit Party's certified accountant or any resignation, or
decision not to stand for re-election, by any member of any Credit Party's board
of directors (or comparable body), (iii) that any Person has given any notice to
any Credit Party or taken any other action with respect to a claimed default
under any material agreement or instrument (other than the DIP Loan Documents)
to which any Credit Party is a party or by which any of its assets is bound,
(iv) of the institution of any litigation or arbitration (other than the
Bankruptcy Cases and related matters) involving an alleged liability of any
Credit Party equal to or greater than $250,000 or any adverse determination in
any litigation or arbitration involving a potential liability of any Credit
Party equal to or greater than $250,000 or (v) the assertion of any indemnity
claim against any Credit Party in an amount equal to or greater than $250,000, a
certificate of a Responsible Officer specifying the nature and period of
existence of any such condition or event, or specifying the notice given or
action taken by such holder or Person and the nature of such claimed default
(including any Event of Default or Default), event or condition, and what action
the applicable Credit Party has taken, is taking or proposes to take with
respect thereto;

            (h) promptly upon any officer of any Credit Party obtaining
knowledge of (i) the institution of any steps by any member of the Controlled
Group or any other Person to terminate any Pension Plan, (ii) the failure of any
member of the Controlled Group to make a required contribution to any Pension
Plan (if such failure is sufficient to give rise to a Lien under Section 302(f)
of ERISA) or to any Multiemployer Pension Plan, (iii) the taking of any action
with respect to a Pension Plan which could result in the requirement that
Borrower or any Guarantor furnish a bond or other security to the PBGC or such
Pension Plan, (iv) the occurrence of any event with respect to any Pension Plan
or Multiemployer Pension Plan which could result in the incurrence by any member
of the Controlled Group of any material liability, fine or penalty (including
any claim or demand for withdrawal liability or partial withdrawal from any
Multiemployer Pension Plan), (v) any material increase in the contingent
liability of each Credit Party with respect to any post-retirement welfare plan
benefit or (vi) any notice that any

                                       35

<PAGE>

Multiemployer Pension Plan is in reorganization, that increased contributions
may be required to avoid a reduction in plan benefits or the imposition of an
excise tax, that any such Plan is or has been funded at a rate less than that
required under Section 412 of the Code, that any such Plan is or may be
terminated, or that any such Plan is or may become insolvent, a certificate of a
Responsible Officer specifying the nature and period of existence of any such
condition or event, or specifying the notice given or action taken by such
holder or Person, and what action the applicable Credit Party has taken, is
taking or proposed to take with respect thereto;

            (i) promptly upon any officer of any Credit Party obtaining
knowledge of any complaint, order, citation, notice or other written
communication from any Person delivered to any Credit Party with respect to, or
if any officer of any Credit Party becomes aware of (x) the existence or alleged
existence of a violation of any Environmental Law by any Credit Party or the
incurrence of any material liability, obligation, loss, damage, cost, expense,
fine, penalty or sanction by any Credit Party or the requirement on any Credit
Party to commence any remedial action resulting from or in connection with any
air emission, water discharge, noise emission, Hazardous Material or any other
environmental, health or safety matter at, upon, under or within any of the
properties now or previously owned, leased or operated by any Credit Party, or
due to the operations or activities of any Credit Party or any other Person on
or in connection with any such property or any part thereof or (y) any Release
or threatened Release on any of such properties of Hazardous Material, a
certificate of a Responsible Officer specifying the nature and period of
existence of any such condition or event, or specifying the notice given or
action taken by such holder or Person, and what action the applicable Credit
Party has taken, is taking or proposes to take with respect thereto, provided
that for the purposes of this Section each Credit Party shall be deemed to
include any business or business entity which is, in whole or in part, a
predecessor of such Credit Party;

            (j) promptly upon any officer of any Credit Party obtaining
knowledge that any Credit Party has either (x) registered or applied to register
any Intellectual Property with the U.S. government, any foreign government or
any agency or department thereof, or (y) acquired any interest in real property
(including leasehold interests in real property), a certificate of a Responsible
Officer describing such Intellectual Property and/or such real property in such
detail as Agent shall reasonably require;

            (k) copies of any reports or notices related to any material taxes
and any other material reports or notices received by any Credit Party from, or
filed by any Credit Party with, any Federal, state or local governmental agency
or body, other than tax returns; and, upon reasonable request by Agent, copies
of tax returns filed by any Credit Party;

            (l) on or before the Tuesday of each week hereafter, a variance
report reflecting, on a line-item basis, the actual cash receipts and
expenditures for the preceding week and the percentage variance of such actual
results (and brief explanation of variances) from those reflected in the Budget
for such week, in form and substance reasonably satisfactory to Agent and the
Required DIP Lenders;

            (m) as soon as available and in any event no later than noon
(Central time) on the second (2nd) Business Day of each week, and from time to
time upon the request of Agent (which request may be made more frequently, as
requested by Agent, but only to the extent that Borrower is able to produce such
more frequent reporting), a Borrowing Base Certificate as of

                                       36

<PAGE>

the prior Saturday (or, in the case of Borrowing Base Certificates requested
more frequently than weekly, as of the second preceding Business Day), in each
case accompanied by schedules of sales made, credits issued and cash received
for and during the period since the Borrowing Base Certificate most recently
delivered to Agent, and also accompanied by schedules detailing the weekly
accrued and unpaid fees and expenses included in the Carve-Out, with detailed
back-up as to each professional, rolling forward its respective balance
reflecting payments made and bills accrued;

            (n) as soon as available and in any event no later than noon
(Central time) on each Tuesday, and from time to time upon the request of Agent
(which request may be made as frequently as daily), Account and Inventory
eligibility calculations and supporting detail, which may include (i) agings of
Accounts, (ii) separate identification of Accounts arising prior to, on and
after, the Petition Date, and (iii) reconciliation reports with respect to the
Borrowing Base Certificate most recently delivered to Agent, the financial
statements of Borrower delivered to Agent, Borrower's general ledger and/or the
reports required pursuant to this paragraph and PARAGRAPH (o) below, each in
form and substance, and with such supporting detail and documentation, as may be
reasonably requested by Agent;

            (o) as soon as available and in any event no later than noon
(Central time) on each Tuesday, (i) perpetual Inventory reports, (ii) separate
listings of Inventory arising prior to, on and after, the Petition Date, and
(iii) Inventory reports by location and category (and including the amounts of
Inventory and the value thereof at, any leased locations and at premises of
warehouses, consignees, processors or other third parties);

            (p) upon Agent's reasonable request, (i) agings of accounts payable
(and including information indicating the amounts owing to owners and lessors of
leased premises, warehouses, consignees, processors and other third parties from
time to time in possession of any Collateral), (ii) copies of customer
statements and credit memos, remittance advices and reports and copies of
deposit slips and bank statements, (iii) copies of shipping and delivery
documents, and (iv) copies of purchase orders, invoices and delivery documents
for Inventory and Equipment acquired by any Credit Party;

            (q) within two (2) Business Days after any request therefor, such
additional information in such detail concerning the amount, composition and
manner of calculation of the Borrowing Base as Agent or any DIP Lender may
reasonably request;

            (r) upon the request of Agent from time to time, a report of an
independent collateral auditor satisfactory to Agent (which may be, or be
affiliated with, a DIP Lender) with respect to the components of the Borrowing
Base, which report shall indicate whether or not the information set forth in
the Borrowing Base Certificate most recently delivered is accurate and complete
in all material respects based upon a review by such auditors of the Accounts
(including verification with respect to the amount, aging, identity and credit
of the respective Account Debtors and the billing practices of the respective
Credit Party) and Inventory (including verification as to the value, location
and respective types);

            (s) upon the request of Agent from time to time, updated schedules
of Equipment and Real Property, showing location of each such item of
Collateral;

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<PAGE>

            (t) upon the reasonable request of Agent, Agent may require the
Borrower to obtain and deliver to Agent, or may itself, or through any of its
officers, employees or agents, obtain, in either case at Borrower's expense,
appraisal reports in form, substance, scope and methodology, and from
appraisers, satisfactory to Agent, stating the then current market values of all
or any portion of the Collateral (including, without limitation, Inventory, Real
Property and Equipment); Borrower shall allow Agent or Highland to obtain such
appraisals of Collateral not less frequently than once per calendar quarter (or
twice per year with respect to Collateral constituting Equipment); in addition,
from time to time, if Agent or any DIP Lender determines that obtaining
appraisals is necessary in order for Agent or such DIP Lender to comply with
applicable laws or regulations, Borrower shall obtain and deliver to Agent, or
Agent may itself, or through any of its officers, employees or agents, obtain,
in either case at Borrower's expense, appraisal reports, in form and substance,
and from appraisers, satisfactory to Agent stating the then current fair market
values of all or any portion of the Collateral;

            (u) on or before the Tuesday of each week hereafter, an updated
Budget, including an updated rolling 13-week financial forecast and cash flow
projection in form and substance satisfactory to Agent, reflecting, on a
line-item basis, anticipated cash receipts and expenditures and anticipated Net
Borrowing Availability for each week during the succeeding month, in form
reasonably satisfactory to Agent and the Required DIP Lenders; and

            (v) with reasonable promptness, such other information and data with
respect to any Credit Party as from time to time may be reasonably requested by
Agent or any DIP Lender.

            SECTION 4.2 PAYMENT AND PERFORMANCE OF OBLIGATIONS.

            Each Credit Party (i) will pay and discharge, at or before maturity,
all of their respective obligations and liabilities, including tax liabilities,
except for such obligations and/or liabilities which are the subject of a
Permitted Contest or are otherwise effectively stayed or the nonpayment or
nondischarge of which could not reasonably be expected to have a Material
Adverse Effect, (ii) will maintain, in accordance with GAAP, appropriate
reserves for the accrual of all of their respective obligations and liabilities
and (iii) will not breach, or permit to exist any default under, the terms of
any lease, commitment, contract, instrument or obligation to which it is a
party, or by which its properties or assets are bound, except for such breaches
or defaults which could not reasonably be expected to have a Material Adverse
Effect or are otherwise effectively stayed.

            SECTION 4.3 CONDUCT OF BUSINESS AND MAINTENANCE OF EXISTENCE.

            Each Credit Party will continue to engage in business of the same
general type as they now conduct and will preserve, renew and keep in full force
and effect, their respective existence and their respective rights, privileges
and franchises necessary or desirable in the normal conduct of business.

            SECTION 4.4 MAINTENANCE OF PROPERTY; INSURANCE.

            (a) Each Credit Party will keep all property useful and necessary in
its business in good working order and condition, ordinary wear and tear
excepted.

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            (b) Borrower will maintain, and will cause each Guarantor to
maintain, (i) physical damage insurance on all real and personal property on an
all risks basis (including the perils of flood and quake), covering the repair
and replacement cost (subject to the deductibles provided for in such policies)
of all such property and consequential loss coverage for business interruption
and public liability insurance (including products/completed operations
liability coverage) in each case of the kinds customarily carried or maintained
by Persons of established reputation engaged in similar businesses and in
amounts acceptable to Agent and (ii) such other insurance coverage in such
amounts and with respect to such risks as Agent may reasonably request. All such
insurance shall be provided by insurers having an A.M. Best policyholders rating
reasonably acceptable to Agent.

            (c) On or prior to the Effective Date, each Credit Party will cause
Agent to be named as an additional insured, assignee and loss payee, as
applicable, on each insurance policy required to be maintained pursuant to this
SECTION 4.4 pursuant to endorsements in form and content acceptable to Agent.
Each Credit Party will deliver to Agent and the DIP Lenders (i) on the Effective
Date, a certificate from each Credit Party's insurance broker dated such date
showing the amount of coverage as of such date, and that such policies will
include effective waivers (whether under the terms of any such policy or
otherwise) by the insurer of all claims for insurance premiums against all loss
payees and additional insureds and all rights of subrogation against all loss
payees and additional insureds, and that if all or any part of such policy is
canceled, terminated or expires, the insurer will forthwith give notice thereof
to each additional insured and loss payee and that no cancellation, reduction in
amount or material change in coverage thereof shall be effective until at least
thirty (30) days after receipt by each additional insured and loss payee of
written notice thereof, (ii) on an annual basis, and upon the request of any DIP
Lender through Agent from time to time, full information as to the insurance
carried, (iii) within five (5) days of receipt of notice from any insurer, a
copy of any notice of cancellation, nonrenewal or material change in coverage
from that existing on the date of this DIP Credit Agreement and (iv) forthwith,
notice of any cancellation or nonrenewal of coverage by each Credit Party.

            (d) In the event each Credit Party fails to provide Agent with
evidence of the insurance coverage required by this DIP Credit Agreement, Agent
may purchase insurance at each Credit Party's expense to protect Agent's
interests in the Collateral. This insurance may, but need not, protect each
Credit Party's interests. The coverage purchased by Agent may not pay any claim
made by any Credit Party or any claim that is made against any Credit Party in
connection with the Collateral. A Credit Party may later cancel any insurance
purchased by Agent, but only after providing Agent with evidence that such
Credit Party has obtained insurance as required by this DIP Credit Agreement. If
Agent purchases insurance for the Collateral, the Credit Parties will be
responsible for the costs of that insurance, including interest and other
charges imposed by Agent in connection with the placement of the insurance,
until the effective date of the cancellation or expiration of the insurance. The
costs of the insurance may be added to the Obligations. The costs of the
insurance may be more than the cost of insurance each Credit Party is able to
obtain on its own.

            SECTION 4.5 COMPLIANCE WITH LAWS.

            Each Credit Party will comply with the requirements of all
applicable laws, ordinances, rules, regulations, and requirements of
governmental authorities (including

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<PAGE>

Environmental Laws and ERISA and the rules and regulations thereunder), except
as otherwise permitted by the Bankruptcy Court or where the noncompliance with
which could not reasonably be expected to have a Material Adverse Effect.

            SECTION 4.6 INSPECTION OF PROPERTY, BOOKS AND RECORDS.

            Each Credit Party will keep proper books of record and account in
accordance with GAAP in which full, true and correct entries shall be made of
all dealings and transactions in relation to its business and activities; and
will permit, at the sole cost of the respective Credit Party, representatives of
Agent and Highland and of any DIP Lender to visit and inspect any of their
respective properties, to examine and make abstracts or copies from any of their
respective books and records, to conduct a collateral audit and analysis of the
Collateral and to discuss their respective affairs, finances and accounts with
their respective officers, employees and independent public accountants as often
as may be warranted in the reasonable credit judgment of the Agent or the
Required DIP Lenders, it being the intent of certain of the DIP Lenders to make
such visits and inspections and conduct such audits and analyses no less
frequently than quarterly (semi-annually for Collateral comprised of Equipment).
In the absence of an Event of Default, Agent or any DIP Lender exercising any
rights pursuant to this SECTION 4.6 shall give such Credit Party commercially
reasonable prior notice of such exercise and shall take reasonable steps not to
interfere with the conduct of Borrower's business during such inspection. No
notice shall be required during the existence and continuance of any Event of
Default.

            SECTION 4.7 USE OF PROCEEDS.

            Borrower will use the proceeds of the Loans solely for the following
purposes and in the following order of application: (a) for payment of
transaction fees and expenses incurred in connection with the preparation,
filing and administration of the Bankruptcy Cases and the DIP Loan Documents, in
accordance with the Budget, (b) to pay interest, fees, and expenses under the
DIP Loan Documents in accordance with the terms thereof, (c) for operating
expenses and working capital needs of the Credit Parties in a manner consistent
with the Budget, and (d) to pay permitted pre-petition claim payments, adequate
protection payments as set forth in the Financing Order, and certain other
administrative costs and expenses, in each case, to the extent consistent with
the Budget. In particular, Borrower shall be entitled to use proceeds of the
Loans to pay all fees and reasonable professional fees and expenses payable to
Agent and Highland hereunder (including without limitation legal, financial
advisors and consultants, appraisal, audit and valuation-related fees and
expenses), regardless of whether incurred prior to or after the Closing Date.
Except as otherwise provided in the Financing Order, in no event shall any
portion of the Loans be used to pay costs or expenses incurred in connection
with the investigation, commencement of, or prosecution or other action
regarding, or any objection, defense or counterclaim to, (a) any claims that are
adverse to the Prepetition Transaction Documents or any Liens securing the
Prepetition Obligations or against the Prepetition Agent, any Prepetition
Lender, any Prepetition Noteholder, or any of their agents, attorneys, advisors
or representatives, (b) any claims that are adverse to the DIP Loan Documents or
any Liens securing the Obligations or against the Agent, any DIP Lender, or any
of their agents, attorneys, advisors or representatives, or (c) to fund the
acquisitions, Capital Expenditures, capital leases, or other transactions of any
Credit Party that are not in the ordinary course of such Credit Party's business
other than as set forth in the Budget. Notwithstanding the foregoing, with
respect to the

                                       40

<PAGE>

sixty (60) day investigation period for the Committee, fees and expenses for
such investigation not to exceed $25,000 shall be available from the proceeds of
the Loans.

            SECTION 4.8 DIP LENDERS' MEETINGS.

            Within forty-five (45) days after the end of each Fiscal Year, and
at such other times as are reasonably requested by Agent or the Required DIP
Lenders, Borrower will conduct a meeting of Agent and the DIP Lenders to discuss
the applicable fiscal period's results and the financial condition of the Credit
Parties at which shall be present a Financial Officer and such officers of the
Credit Parties as may be reasonably requested to attend by Agent or the Required
DIP Lenders, such request or requests to be made within a reasonable time prior
to the scheduled date of such meeting. Such meetings shall be held at a time and
place convenient to the DIP Lenders and to Borrower.

            SECTION 4.9 HAZARDOUS MATERIALS; REMEDIATION.

            Each Credit Party will provide Agent within thirty (30) days after
demand therefor with a bond, letter of credit or similar financial assurance
evidencing to the satisfaction of Agent that sufficient funds are available to
pay the cost of removing, treating and disposing of any Hazardous Materials or
Hazardous Materials Contamination and discharging any assessment which may be
established on any property as a result thereof, such demand to be made, if at
all, upon Agent's reasonable business determination that the failure to remove,
treat or dispose of any Hazardous Materials or Hazardous Materials
Contamination, or the failure to discharge any such assessment could reasonably
be expected to have a Material Adverse Effect.

            SECTION 4.10 FURTHER ASSURANCES.

            Each Credit Party will, at their own cost and expense, cause to be
promptly and duly taken, executed, acknowledged and delivered all such further
acts, documents and assurances as may from time to time be necessary or as Agent
or the Required DIP Lenders may from time to time reasonably request in order to
carry out the intent and purposes of the DIP Loan Documents and the transactions
contemplated thereby, including all such actions to establish, preserve, protect
and perfect a first priority Lien (subject only to Permitted Liens) in favor of
Agent for the benefit of the DIP Lenders on the Collateral (including Collateral
acquired after the date hereof), including on any and all assets of each Credit
Party, whether now owned or hereafter acquired.

            SECTION 4.11 COOPERATION.

            Each Credit Party will cooperate with Agent and its financial
advisors in providing to Agent and such advisors such information as is
necessary in order to permit Agent and such advisors to evaluate the Budgets
delivered hereunder, and to prepare periodic reconciliations of the Credit
Parties' actual performance to their performance projected in such Budgets.

            SECTION 4.12 DEBT RATINGS.

            As soon as practicable and at its own expense, Borrower shall use
commercially reasonable efforts to obtain a rating of the Debt evidenced by the
DIP Loan Documents.

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<PAGE>

            SECTION 4.13 BUDGET.

            Borrower shall deliver to Agent a Budget for the period through
April 30, 2005 at least three (3) days prior to any hearing related to the Final
Financing Order and must be attached to the Final Financing Order.

                                    ARTICLE 5
                               NEGATIVE COVENANTS

            Borrower agrees that, so long as any Credit Exposure exists:

            SECTION 5.1 DEBT.

            Borrower will not, and will not permit any Guarantor to, directly or
indirectly, create, incur, assume, guarantee or otherwise become or remain
directly or indirectly liable with respect to, any Debt, or any contingent
obligations that would be Debt hereunder if they were non-contingent, except
for:

            (a) Debt under the DIP Loan Documents; and

            (b) Debt or such contingent obligations outstanding on the date of
this DIP Credit Agreement as set forth in the Information Certificate.

            SECTION 5.2 LIENS.

            Borrower will not, and will not permit any Guarantor to, directly or
indirectly, create, assume or suffer to exist any Lien on any asset now owned or
hereafter acquired by it, except:

            (a) Liens created by the Security Documents securing the
Obligations;

            (b) Liens existing on the date of this DIP Credit Agreement other
than the Liens of the Prepetition Lenders and the Prepetition Noteholders as set
forth in the Information Certificate ("PERMITTED LIENS") or as otherwise
disclosed in the title policies, if any, issued in connection with the execution
and delivery of the Security Documents;

            (c) Liens for taxes or other governmental charges not at the time
delinquent or thereafter payable without penalty;

            (d) Liens arising in the ordinary course of business (i) in favor of
carriers, warehousemen, mechanics and materialmen, and other similar Liens
imposed by law and (ii) in connection with worker's compensation, unemployment
compensation and other types of social security (excluding Liens arising under
ERISA) or in connection with surety bonds, bids, performance bonds and similar
obligations for sums not overdue and not involving any deposits or advances or
borrowed money or the deferred purchase price of property or services and, in
each case, for which it maintains adequate reserves;

            (e) attachments, appeal bonds, judgments and other similar Liens,
for sums not exceeding $100,000 arising in connection with court proceedings;
provided that the

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<PAGE>

execution or other enforcement of such Liens is effectively stayed and the
claims secured thereby are the subject of a Permitted Contest;

            (f) Liens granted under the Financing Order;

            (g) any interest of a lessor or sublessor under any lease entered
into by Borrower or any Guarantor in the ordinary course of business and
covering only the assets so leased;

            (h) easements, rights of way, restrictions, minor defects or
irregularities in title and other similar Liens not interfering in any material
respect with the ordinary conduct of the business of Borrower or any Guarantor;

            (i) Liens on Prepetition Collateral securing the Prepetition
Obligations;

            (j) the Carve-Out; and

            (k) the replacement, extension or renewal of any lien permitted
above arising out of the permitted extension, renewal or replacement of the Debt
secured thereby.

            SECTION 5.3 RESTRICTED DISTRIBUTIONS.

            Borrower will not, and will not permit any Guarantor to, directly or
indirectly, declare, order, pay, make or set apart any sum for any Restricted
Distribution; provided that the foregoing shall not restrict or prohibit any
wholly-owned Guarantor from making dividends or distributions to Borrower or any
other wholly-owned Guarantor (other than a CTC Company).

            SECTION 5.4 RESTRICTIVE AGREEMENTS.

            Borrower will not, and will not permit any Guarantor to, directly or
indirectly (i) enter into or assume any agreement (other than the DIP Loan
Documents) prohibiting the creation or assumption of any Lien upon its
properties or assets, whether now owned or hereafter acquired or (ii) create or
otherwise cause or suffer to exist or become effective any consensual
encumbrance or restriction of any kind on the ability of any Guarantor to: (1)
pay or make Restricted Distributions to Borrower or any other Guarantor; (2) pay
any Debt owed to Borrower or any other Guarantor; (3) make loans or advances to
Borrower or any other Guarantor; or (4) transfer any of its property or assets
to Borrower or any other Guarantor, in each case, other than the Prepetition
Transaction Documents.

            SECTION 5.5 PAYMENTS AND MODIFICATIONS OF CERTAIN DEBT.

            (a) Borrower will not, and will not permit any Guarantor to,
directly or indirectly, (i) declare, pay, make or set aside any amount for
payment in respect of Subordinated Intercompany Debt; or (ii) amend or otherwise
modify the terms of any Subordinated Intercompany Debt.

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<PAGE>

            SECTION 5.6 CONSOLIDATIONS, MERGERS AND SALES OF ASSETS.

            Borrower will not, and will not permit any Guarantor to, directly or
indirectly (a) consolidate or merge with or into any other Person or (b) sell,
lease, license or otherwise transfer, directly or indirectly, any of its or
their assets, other than (i) sales of Inventory in the ordinary course of their
respective businesses, (ii) dispositions of Cash Equivalents, (iii) disposition
of obsolete, worn-out or unused Equipment, or other dispositions of Equipment
for cash and fair value (as determined by a duly authorized officer of
Borrower), if all of the following conditions are met: (A) the market value of
Equipment sold or otherwise disposed of in any single transaction or series of
related transactions does not exceed $25,000 and the aggregate market value of
Equipment sold or otherwise disposed of in any Fiscal Year of Borrower does not
exceed $125,000; (B) the Net Cash Proceeds of such Asset Disposition are applied
as required by SECTION 2.3; (C) after giving effect to the Asset Disposition and
the repayment of Debt with the proceeds thereof, Borrower is in compliance on a
pro forma basis with the covenants set forth in ARTICLE 7 recomputed for the
most recently ended fiscal month for which information is available and is in
compliance with all other terms and conditions of this DIP Credit Agreement; and
(D) no Default or Event of Default then exists or would result from such Asset
Disposition; and (iv) the sale or other dispositions of Vehicles in the ordinary
course of business for cash and fair value.

            SECTION 5.7 PURCHASE OF ASSETS, INVESTMENTS.

            Borrower will not, and will not permit any Guarantor to, directly or
indirectly acquire any assets other than in the ordinary course of business.
Borrower will not, and will not permit any Guarantor to, directly or indirectly
make, acquire or own any Investment in any Person other than (a) Investments set
forth on the Information Certificate; (b) Cash Equivalents; (c) Investments in
domestic Guarantors (other than a CTC Company), so long as (i) Borrower has
pledged to Agent all of the outstanding capital stock or other equity interests
of any such domestic Guarantor and (ii) any such domestic Guarantor has
Guaranteed the Obligations and secured such Guarantee by granting in favor of
Agent, for its benefit and the benefit of the DIP Lenders, a Lien on all or
substantially all of the assets; (d) bank deposits established in accordance
with SECTION 5.14; and (e) Investments in securities of Account Debtors received
pursuant to any plan of reorganization or similar arrangement upon the
bankruptcy or insolvency of such Account Debtors. Without limiting the
generality of the foregoing, Borrower will not, and will not permit any
Guarantor to, (i) acquire or create any subsidiary or (ii) engage in any joint
venture or partnership with any other Person.

            SECTION 5.8 TRANSACTIONS WITH AFFILIATES.

            Except (i) as otherwise disclosed in the Information Certificate,
(ii) dividends or distributions permitted by SECTION 5.3, and (iii) for
transactions that are disclosed to Agent in writing in advance of being entered
into and which contain terms that are no less favorable to Borrower or any
Guarantor, as the case may be, than those which might be obtained from a third
party, Borrower will not, and will not permit any Guarantor to, directly or
indirectly, enter into or permit to exist any transaction (including the
purchase, sale, lease or exchange of any property or the rendering of any
service) with any Affiliate of Borrower; provided, however, that for a
transaction or series of related transactions involving value of $500,000 or
more, such determination of fair value shall be made in good faith by a majority
of the disinterested

                                       44

<PAGE>

members of the Board of Directors of Borrower and evidenced by a board
resolution; provided further that for a transaction or series of related
transactions involving value of $5,000,000 or more, the Board of Directors of
Borrower shall have received an opinion from a nationally recognized investment
banking firm that such transaction is on terms no less favorable than those that
might reasonably have been obtained in a comparable transaction on an arm's
length basis from a Person that is not an Affiliate. The foregoing restrictions
shall not apply to reasonable and customary directors' fees, indemnification and
similar arrangements and payments thereunder.

            SECTION 5.9 MODIFICATION OF ORGANIZATIONAL DOCUMENTS.

            Borrower will not, and will not permit any Guarantor to, directly or
indirectly amend or otherwise modify any Organizational Documents of such
Person, except for such amendments or other modifications required by law or in
connection with the Bankruptcy Cases and fully disclosed to Agent.

            SECTION 5.10 FISCAL YEAR.

            Borrower will not, and will not permit any Guarantor to, change its
Fiscal Year.

            SECTION 5.11 CONDUCT OF BUSINESS.

            Borrower will not, and will not permit any Guarantor to, directly or
indirectly, engage in any line of business other than those businesses engaged
in on the Closing Date and businesses reasonably related thereto.

            SECTION 5.12 CORPORATE NAMES; JURISDICTION OF ORGANIZATION.

            Borrower will not, and will not permit any Guarantor to, change its
corporate name, identity, or its jurisdiction of formation or organization,
unless in each case, Borrower shall provide Agent and each DIP Lender with at
least thirty (30) days prior written notice thereof.

            SECTION 5.13 PREPETITION TRANSACTION DOCUMENTS.

            Borrower will not, and will not permit any Guarantor to, dispute (a)
the validity or enforceability of any of the Prepetition Transaction Documents,
or any of Borrower's or Guarantors' obligations thereunder, (b) the validity,
priority, enforceability, scope or extent of any Lien in favor of Prepetition
Collateral Agent or against any of the Prepetition Collateral or (c) the
validity of any of the Prepetition Obligations, whether such dispute is brought
in the Bankruptcy Cases or in another judicial, administrative or other
proceeding.

            SECTION 5.14 LEASE PAYMENTS.

            Borrower will not, and will not permit any Guarantor to, directly or
indirectly, incur or assume, whether pursuant to a Guarantee or otherwise, any
liability for rental payments under a lease with a lease term of one year or
more or extensions or renewals of existing leases (other than those set forth on
the Information Certificate), in each case without the consent of the Required
DIP Lenders; provided, however, that the aggregate amount of lease payments that

                                       45

<PAGE>

Borrower and its consolidated Subsidiaries have so incurred or assumed may not
exceed, on a consolidated basis, $2,000,000 for any calendar year under all such
leases (excluding Capital Leases).

            SECTION 5.15 BANK ACCOUNTS.

            Without limiting the provisions of, and except as required by,
SECTION 6.1(D), Borrower will not, and will not permit any Guarantor to,
directly or indirectly, establish any new bank account without prior written
notice to Agent and unless Agent, Borrower or such Guarantor and the bank at
which the account is to be opened enter into a Deposit Account Control Agreement
regarding such bank account pursuant to which such bank acknowledges the
security interest of Agent in such bank account, agrees to comply with
instructions originated by Agent directing disposition of the funds in the bank
account without further consent from Borrower, and agrees to subordinate and
limit any security interest the bank may have in the bank account on terms
satisfactory to Agent.

            SECTION 5.16 HEDGING TRANSACTIONS.

            Borrower shall not, and shall not permit any Guarantor to, engage in
any hedging or similar transactions, including without limitation interest rate
agreements.

            SECTION 5.17 PAYMENTS TO PREPETITION UNSECURED CREDITORS.

            Except for payments approved by the Bankruptcy Court following at
least 10 day's prior written notice to Agent, Borrower shall not, and shall not
permit any Guarantor to, make any payment of any proceeds constituting part of
the Collateral or other cash (including, without limitation, proceeds of Loans)
to any unsecured creditor of Borrower on account of claims arising prior to the
commencement of the Bankruptcy Cases (including without limitation payments in
respect of reclamation claims of unpaid suppliers of goods delivered to such
Borrower prior to the commencement of the Bankruptcy Cases (regardless of
whether such claims have been granted administrative expense priority status
pursuant to Section 546(c) of the Bankruptcy Code)) prior to confirmation of a
Bankruptcy Plan.

            SECTION 5.18 PENSION PLAN PAYMENTS.

            On and after the Effective Date, Borrower shall not, and shall not
permit any Guarantor to, make any cash Pension Plan payments, including payment
of expenses unless otherwise required by law or permitted by the Bankruptcy
Court.

            SECTION 5.19 REGULATIONS U AND X.

            Borrower shall not, and shall not permit any Guarantor to, take any
action that would result in any non-compliance of the Loans with Regulations U
and X of the Board of Governors of the Federal Reserve System.

                                       46

<PAGE>

                                   ARTICLE 6
                     ACCOUNTS AND INVENTORY REPRESENTATIONS,
                      WARRANTIES, COVENANTS AND AGREEMENTS

            To induce Agent and DIP Lenders to enter into this DIP Credit
Agreement and to make the Loans and other credit accommodations contemplated
hereby, Borrower hereby represents and warrants to Agent and each DIP Lender,
and further agrees with Agent and each DIP Lender, that:

            SECTION 6.1 ACCOUNTS AND ACCOUNT COLLECTIONS.

            (a) Each Credit Party shall notify Agent promptly of: (i) any
material delay in the performance by each Credit Party of any of its material
obligations to any Account Debtor or the assertion of any material claims,
offsets, defenses or counterclaims by any Account Debtor, or any material
disputes with Account Debtors, or any settlement, adjustment or compromise
thereof, (ii) all material adverse information known to any Credit Party
relating to changes in the financial condition of any Account Debtor and (iii)
any event or circumstance which, to any Credit Party's knowledge, would result
in any Account no longer constituting an Eligible Account. Each Credit Party
hereby agrees not to grant to any Account Debtor any credit, discount, allowance
or extension, or to enter into any agreement for any of the foregoing, without
Agent's consent, except in the ordinary course of business in accordance with
practices and policies previously disclosed in writing to Agent. So long as no
Event of Default exists or has occurred and is continuing, each Credit Party may
settle, adjust or compromise any claim, offset, counterclaim or dispute with any
Account Debtor. At any time that an Event of Default exists or has occurred and
is continuing, Agent shall, at its option, have the exclusive right to settle,
adjust or compromise any claim, offset, counterclaim or dispute with Account
Debtors of any Credit Party or grant any credits, discounts or allowances.

            (b) With respect to each Account: (i) the amounts shown on any
invoice delivered to Agent or schedule thereof delivered to Agent shall be true
and complete in all material respects, (ii) no payments shall be received
thereon except payments immediately delivered to Agent pursuant to the terms of
this DIP Credit Agreement or any applicable Security Document (to the extent so
required), (iii) there shall be no setoffs, deductions, contras, defenses,
counterclaims or disputes existing or asserted with respect thereto except as
reported to Agent in accordance with the terms of SECTION 6.1(a) of this DIP
Credit Agreement, and (iv) none of the transactions giving rise thereto will
violate any applicable laws or regulations, all documentation relating thereto
will be legally sufficient under such laws and regulations and all such
documentation will be legally enforceable in accordance with its terms.

            (c) Agent shall have the right at any time or times, in Agent's name
or in the name of a nominee of Agent, to verify the validity, amount or any
other matter relating to any Account or other Collateral, by mail, telephone,
e-mail, facsimile transmission or otherwise. To facilitate the exercise of the
right described in the immediately preceding sentence, each Credit Party hereby
agrees to provide Agent upon request the name and address of each Account Debtor
of each Credit Party.

            (d) At Agent's request, each Credit Party shall establish and
maintain, at its sole expense, blocked accounts or lockboxes and related blocked
accounts (in either case,

                                       47

<PAGE>

"BLOCKED ACCOUNTS"), as Agent may specify, with such banks as are acceptable to
Agent into which each Credit Party shall promptly deposit and direct their
respective Account Debtors to directly remit all payments on Accounts and all
payments constituting proceeds of Inventory or other Collateral in the identical
form in which such payments are made, whether by cash, check or other manner.
Each Credit Party shall deliver, or cause to be delivered, to Agent Deposit
Account Control Agreements duly authorized, executed and delivered by
substantially all (as determined by Agent in its sole discretion) of the banks
where Blocked Accounts for the benefit of any Credit Party are maintained, and
by substantially all (as determined by Agent in its sole discretion) banks where
any other Deposit Accounts are from time to time maintained. At Agent's request,
each Credit Party shall also establish and maintain, at its sole expense, a
concentration account (the "CONCENTRATION ACCOUNT") with a bank acceptable to
Agent, which shall also be subject to a Deposit Account Control Agreement. The
Deposit Account Control Agreements executed with respect to each Blocked Account
shall provide, at Agent's discretion, either that the Concentration Account bank
shall, on a daily basis, sweep all funds in such Blocked Accounts to the
Concentration Account by reverse ACH transfer, or that the Blocked Account bank
shall initiate daily wire transfers of funds in such Blocked Account to the
Concentration Account. The Deposit Account Control Agreement executed with
respect to the Concentration Account shall provide that all funds in the
Concentration Account shall be swept daily to the Payment Account or such other
account as instructed by Agent. At Agent's request, each Credit Party shall
further execute and deliver such agreements and documents as Agent may require
in connection with such Blocked Accounts, Deposit Accounts, Concentration
Account and such Deposit Account Control Agreements. Without limiting the
provisions of SECTION 5.14, no Credit Party shall establish any Deposit Accounts
not existing as of the Closing Date, unless each Credit Party or its Guarantors
(as applicable) have complied in full with the provisions of this SECTION 6.1
with respect to such Deposit Accounts. Each Credit Party agrees that all
payments made to such Blocked Accounts, the Concentration Account or other funds
received and collected by Agent or any DIP Lender, whether in respect of the
Accounts, as proceeds of Inventory or other Collateral or otherwise shall be
treated as payments to Agent and DIP Lenders in respect of the Obligations and
therefore shall constitute the property of Agent and DIP Lenders to the extent
of the then outstanding Obligations.

            (e) For purposes of calculating the amount of the Loans available to
Borrower and interest on the Obligations, payments made to a Blocked Account or
the Concentration Account will be applied (conditional upon final collection) to
the Obligations on the Business Day of receipt by Agent of immediately available
funds in the Payment Account provided such payments and notice thereof are
received in accordance with Agent's usual and customary practices as in effect
from time to time and with sufficient time to credit the Loan Account on such
day, and if not, then on the next Business Day.

            (f) Each Credit Party and its directors, employees, agents, and
other Affiliates shall, acting as trustee for Agent, receive, as the property of
Agent, any monies, checks, notes, drafts or any other payment relating to and/or
proceeds of Accounts, Inventory or other Collateral which come into their
possession or under their control and immediately upon receipt thereof, shall
deposit or cause the same to be deposited in the Blocked Accounts or the
Concentration Account, or remit the same or cause the same to be remitted, in
kind, to Agent. In no event shall the same be commingled with each Credit
Party's own funds. Each Credit Party agrees to reimburse Agent on demand for any
amounts owed or paid to any bank at which a Blocked Account or the Concentration
Account is established or any other bank or Person

                                       48

<PAGE>

involved in the transfer of funds to or from the Blocked Accounts or the
Concentration Account arising out of Agent's payments to or indemnification of
such bank or Person.

            SECTION 6.2 INVENTORY.

            With respect to the Inventory: (i) Borrower shall at all times
maintain, and cause each of its Guarantors to maintain, records of Inventory
reasonably satisfactory to Agent, keeping correct and accurate records itemizing
and describing the kind, type, quality and quantity of Inventory, the cost
therefor and daily withdrawals therefrom and additions thereto; (ii) Borrower
shall conduct, and cause each of its Guarantors to conduct, a physical count of
the Inventory at least once each year but at any time or times as Agent may
request on or after an Event of Default, and promptly following such physical
inventory shall supply Agent with a report in the form and with such specificity
as may be reasonably satisfactory to Agent concerning such physical count; (iii)
upon Agent's request from time to time, permit a third party designated by Agent
to conduct physical counts and verifications of each Credit Party's Inventory on
a complete or spot basis, with reconciliations back to each Credit Party's
records, all at each Credit Party's expense; (iv) upon Agent's request from time
to time, which request will be made on at least a calendar quarterly basis, each
Credit Party shall provide access to the Inventory to Agent's Inventory
appraisal firm; (v) each Credit Party shall not sell Inventory to any customer
on approval, or any other basis which entitles the customer to return (except
for the right of customers for Inventory which is defective or non-conforming)
or may obligate any Credit Party to repurchase such Inventory (other than
customary warranties or guarantees); (vi) each Credit Party shall keep the
Inventory in good and marketable condition; and (vii) each Credit Party shall
not acquire or accept without prior written notice to Agent, any Inventory on
consignment or approval.

                                   ARTICLE 7
                              PERFORMANCE COVENANTS

            Each Credit Party agrees that, so long as any Credit Exposure
exists, the Credit Parties, as of the last day of each week, beginning with the
week ending on Saturday, January 8, 2005, (i) shall have achieved, on a
cumulative basis from the Petition Date through such date, at least 90% of the
sales and collections set forth in the Budget for such period, and (ii) shall
have not made, on a cumulative basis, from the Petition Date through such date,
more than 110% of the aggregate disbursements as set forth in the Budget for
such period.

                                   ARTICLE 8
                                   CONDITIONS

            SECTION 8.1 CONDITIONS TO EFFECTIVENESS OF THIS DIP CREDIT
AGREEMENT.

            The obligation of each DIP Lender to make the initial Loans, on the
Effective Date shall be subject to the consummation of the following conditions
precedent, each to the satisfaction of Agent and Required DIP Lenders in their
sole discretion:

            (a) the Interim Financing Order shall have been entered by the
Bankruptcy Court in the Bankruptcy Cases after notice and a hearing conducted in
accordance with the Bankruptcy Code and rules thereunder, which shall not have
been modified, reversed or stayed

                                       49

<PAGE>

pending appeal, in form and substance satisfactory to Agent and DIP Lenders,
authorizing and approving the transactions contemplated in this DIP Credit
Agreement and, among other things, (i) finding that Agent and DIP Lenders are
extending credit to Borrower in good faith within the meaning of Section 364(e)
of the Bankruptcy Code, (ii) approving payment by Borrower of all fees and
expenses described hereunder, including without limitation the Unused Line Fee,
the Structuring Fee, the Closing Fee, the Administration Fee, the Audit Fee, and
all costs and expenses to be paid or reimbursed by Borrower hereunder, (iii)
providing for the automatic perfection of Agent's Liens on the Collateral, and
Pre-Petition Agent's adequate protection liens on the Collateral, (iv) granting
the Obligations superpriority status pursuant to Section 364(c)(1) of the
Bankruptcy Code, subject to the Carve-Out and Permitted Liens, (v) granting the
Liens priority pursuant to Sections 364(c)(2), 364(c)(3) and 364(d) of the
Bankruptcy Code to secure the Obligations subject to the Carve-Out and Permitted
Liens; (vi) subject to the Bankruptcy Court's power to issue appropriate orders
under Section 105 of the Bankruptcy Code, providing for the modification of the
automatic stay upon the occurrence of an Event of Default, in order to permit
enforcement of remedies under the Loan Documents, including without limitation
the enforcement upon three (3) Business Days' prior written notice to the
Borrower's counsel, the Committee and the U.S. Trustee, of remedies against the
Collateral, (vii) providing that upon the occurrence of an Event of Default,
Agent and DIP Lenders shall be permitted to immediately cease making Loans and
that each Credit Party shall be prohibited from using Cash Collateral in which
Agent and DIP Lenders have an interest without Agent's prior written consent,
(viii) providing that proceeds of the Loans shall be used as provided herein and
in the Budget, (ix) providing that Agent's Liens on the Collateral are first
priority Liens, subject only to Permitted Liens and the Carve-Out, (x) providing
for Borrower (and successors and assigns, but without prejudice to the rights of
an official committee in the Bankruptcy Cases or other parties in interest to
assert claims on behalf of each Credit Party's estate within sixty (60) days of
entry of the Interim Financing Order), to forever release, discharge and acquit
Prepetition Agent, the Prepetition Collateral Agent, each Prepetition Lender,
and each Prepetition Noteholder, and their respective officers, directors,
agents, attorneys and predecessors in interest, of and from any claims, demands,
liabilities, responsibilities, disputes, remedies, causes of action,
indebtedness and obligations of every type, including without limitation any
so-called "lender liability" claims or defenses, which occurred or arose on or
prior to the Closing Date with respect to Borrower or other parties in interest,
the Prepetition Obligations, the Prepetition Transaction Documents, this DIP
Credit Agreement, the Obligations or the DIP Loan Documents, and (xi) otherwise
being in form and substance reasonably satisfactory to Agent and the Required
DIP Lenders;

            (b) Agent and DIP Lenders shall have received a Budget for the first
60 days of the Bankruptcy Cases that is attached to the Interim Financing Order
at least three (3) days prior to the Petition Date, in form and substance
reasonably satisfactory to Agent and the Required DIP Lenders;

            (c) Agent shall have received an initial 13-week cash flow
projection together with all financial information and projections regarding the
Credit Parties as requested by Agent and the Required DIP Lenders, all in form
and substance reasonably satisfactory to Agent and the Required DIP Lenders;

            (d) Agent shall have completed all due diligence deemed necessary by
Agent, with satisfactory results;

                                       50

<PAGE>

            (e) Agent shall have received satisfactory evidence of the
appropriate authorization of Borrower's board of directors to execute, deliver
and perform the obligations of Borrower under the DIP Loan Documents;

            (f) (i) satisfactory evidence that each Credit Party has obtained
all required consents and approvals of all Persons including all requisite
governmental authorities and third parties, to the execution, delivery and
performance of this DIP Credit Agreement and the other DIP Loan Documents or
(ii) an officer's certificate in form and substance reasonably satisfactory to
Agent affirming that no such consents or approvals are required;

            (g) the payment of all reasonable fees, expenses and other amounts
due and payable on or prior to the Effective Date under each DIP Loan Document,
including, without limitation, the Closing Fee;

            (h) subject to the terms and provisions of ARTICLE VI of this
Agreement, satisfactory evidence that Borrower's cash management system on the
Effective Date shall be substantially similar to the Borrower's cash management
system prior to the Effective Date, unless any material changes have been
approved by Agent and the Required DIP Lenders; and

            (i) receipt by Agent of such other documents, instruments and/or
agreements as Agent may reasonably request.

            SECTION 8.2 CONDITIONS TO EACH LOAN.

            The obligation of the DIP Lenders to make any Loan (including on the
Effective Date) is subject to the satisfaction of the following additional
conditions:

            (a) the receipt by Agent of each agreement, document and instrument
set forth on the Closing Checklist, each in form and substance reasonably
satisfactory to Agent;

            (b) receipt by Agent of a Notice of Borrowing in accordance with
SECTION 2.1(b);

            (c) the fact that, immediately after such Borrowing and after
application of the proceeds thereof, the Total Outstandings will not exceed the
Loan Limit;

            (d) the fact that, immediately before and after such Borrowing, no
Default or Event of Default shall have occurred and be continuing; and

            (e) the fact that the representations and warranties of each Credit
Party contained in the DIP Loan Documents shall be true and correct in all
material respects on and as of the date of such Borrowing, except to the extent
that any such representation or warranty relates to a specific date in which
case such representation or warranty shall be true and correct as of such
earlier date.

            Each borrowing and each giving of a Notice of Borrowing hereunder
shall be deemed to be a representation and warranty by Borrower on the date of
such borrowing or notice as to the facts specified in SECTIONS 8.2(c), 8.2(d),
and 8.2(e).

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<PAGE>

                                   ARTICLE 9
                               EVENTS OF DEFAULT

            SECTION 9.1 EVENTS OF DEFAULT.

            For purposes of the DIP Loan Documents, the occurrence of any of the
following conditions and/or events, whether voluntary or involuntary, by
operation of law or otherwise, shall constitute an "EVENT OF DEFAULT":

            (a) Any Credit Party shall fail to pay when due (whether by
acceleration of otherwise) any principal, interest, premium or fee under any DIP
Loan Document or any other amount payable under any DIP Loan Document;

            (b) Any Credit Party shall fail to observe or perform any covenant
contained in SECTION 4.1, SECTION 4.4, SECTION 4.7, SECTION 4.9, SECTION 4.11,
SECTION 4.12, ARTICLE 5, ARTICLE 6 or ARTICLE 7;

            (c) any Credit Party shall default in the performance of or
compliance with any term contained in this DIP Credit Agreement, in any other
DIP Loan Document (other than the applicable Financing Order) or in any
document, agreement or instrument entered into in connection with Ancillary
Services (other than occurrences described in other provisions of this SECTION
9.1 for which a different grace or cure period is specified or which constitute
immediate Events of Default) and such default is not remedied or waived within
twenty (20) days after the earlier of (1) receipt by Borrower of notice from
Agent or Required DIP Lenders of such default or (2) actual knowledge of
Borrower or any other Credit Party of such default;

            (d) any representation, warranty, certification or statement made by
any Credit Party or any other Person in any DIP Loan Document or in any
certificate, financial statement or other document delivered pursuant to any DIP
Loan Document is incorrect or misleading in any respect (or in any material
respect if such representation, warranty, certification or statement is not by
its terms already qualified as to materiality) when made (or deemed made);

            (e) any Credit Party shall default in the performance or observance
of any term, covenant, condition or agreement contained in the applicable
Financing Order;

            (f) failure of any Credit Party to pay when due or within any
applicable grace period any principal, interest or other amount on Debt (other
than the Loans) in excess of $100,000, or the occurrence of any breach, default,
condition or event with respect to any Debt (other than the Loans), in either
case entered into on or after the Petition Date, assumed during the course of
the Bankruptcy Cases or otherwise required to be paid during the pendency of the
Bankruptcy Cases;

            (g) failure of the Credit Parties to pay any fees and expenses set
forth in SECTION 10.1 when the same becomes due;

            (h) (1) institution of any steps by any Person to terminate a
Pension Plan if as a result of such termination any Credit Party or any member
of the Controlled Group could be required to make a contribution to such Pension
Plan, or could incur a liability or obligation to

                                       52
<PAGE>

such Pension Plan, in excess of $250,000, (2) the commencement of proceedings by
the PBGC to terminate or to appoint a trustee to administer any Pension Plan,
(3) a contribution failure occurs with respect to any Pension Plan sufficient to
give rise to a Lien under Section 302(f) of ERISA, or (4) there shall occur any
withdrawal or partial withdrawal from a Multiemployer Pension Plan and the
withdrawal liability (without unaccrued interest) to Multiemployer Pension Plans
as a result of such withdrawal (including any outstanding withdrawal liability
that any Credit Party or any member of the Controlled Group have incurred on the
date of such withdrawal) exceeds $250,000;

            (i) one or more judgments or orders for the payment of money
aggregating in excess of $250,000 shall be rendered against any or all of the
Credit Parties and such judgments or orders shall continue unsatisfied and
unstayed for a period of ten (10) days;

            (j) dismissal or resignation of the CRO and a replacement acceptable
to Agent and the Required DIP Lenders is not appointed, subject to Bankruptcy
Court approval, within 15 business days, or a material modification in the terms
of the engagement of the CRO is made that is not acceptable to the Agent and the
Required DIP Lenders;

            (k) dismissal or resignation of the chief executive officer or the
chief financial officer of the Borrower and a replacement acceptable to Agent
and the Required DIP Lenders is not appointed, subject to Bankruptcy Court
approval, within 15 business days;

            (l) the accountant's report or reports on the audited statements
delivered pursuant to SECTION 4.1(b) shall include any material qualification
(including with respect to the scope of audit) or exception, other than a going
concern qualification;

            (m) any Lien created by any of the Security Documents shall at any
time fail to constitute a valid and perfected Lien on any significant portion of
the Collateral purported to be secured thereby, subject to no prior or equal
Lien except Liens permitted hereunder, or any Credit Party shall so assert in
writing;

            (n) any Credit Party shall be prohibited or otherwise materially
restrained from conducting the business theretofore conducted by it by virtue of
any casualty, any labor strike, any determination, ruling, decision, decree or
order of any court or regulatory authority of competent jurisdiction or any
other event and such casualty, labor strike, determination, ruling, decision,
decree, order or other event remains unstayed and in effect for any period of
ten (10) days;

            (o) any of the DIP Loan Documents shall for any reason fail to
constitute the valid and binding agreement of any Credit Party thereto, or any
such Credit Party shall so assert in writing; or any Credit Party shall assert
any claim arising under Section 506(c) of the Bankruptcy Code against Agent, any
DIP Lender or the Collateral, other than with respect to the Carve-Out; or any
Person other than Borrower shall assert any claim arising under Section 506(c)
of the Bankruptcy Code against Agent, any DIP Lender or the Collateral; or any
Credit Party shall commence any action in the Bankruptcy Cases adverse to Agent
or its rights and remedies under the DIP Loan Documents, the applicable
Financing Order or any other order of the Bankruptcy Court in the Bankruptcy
Cases;

                                       53
<PAGE>

            (p) prior to the entry of a Final Financing Order, the Interim
Financing Order shall be stayed, revised, reversed, vacated, or modified without
the prior written consent of Agent and the Required DIP Lenders;

            (q) a Final Financing Order has not been entered on or before the
forty-fifth (45th) day from the Petition Date (unless a subsequent date for
entering of a Final Financing Order has been agreed to in writing by Agent and
Required DIP Lenders) or any such Final Financing Order is stayed, revised,
reversed, vacated, or modified without the prior written consent of Agent and
the Required DIP Lenders;

            (r) the terms of this DIP Credit Agreement or the terms in any of
the other DIP Loan Documents shall be revised or modified by order of the
Bankruptcy Court in a manner not acceptable to Agent and DIP Lenders;

            (s) an order shall be entered dismissing the Bankruptcy Cases or
converting them into a proceeding under Chapter 7 of the Bankruptcy Code;

            (t) a trustee shall be appointed or elected in the Bankruptcy Cases,
or an examiner (with expanded powers) is appointed in the Bankruptcy Cases with
powers to operate any Credit Party's business;

            (u) (i) a proposed Chapter 11 plan of reorganization shall be filed,
or Chapter 11 plan of reorganization shall be confirmed, for Borrower that does
not provide for payment in full in cash of all Obligations, and termination of
the Aggregate Commitment on or before the effective date of, or substantial
consummation of, such plan of reorganization, or (ii) any Credit Party shall
file a Chapter 11 plan in the Bankruptcy Cases that does not provide for the
full, final and indefeasible payment of all Obligations in immediately available
funds and the termination of the Aggregate Commitment, or is otherwise in form
and substance not acceptable to Agent or any DIP Lender;

            (v) an order shall be entered in the Bankruptcy Cases that (a)
permits any Credit Party to incur Indebtedness (other than the Loans) secured by
any claim under Bankruptcy Code Section 364(c)(1) or by a Lien pari passu with
or superior to the Lien granted to Agent hereunder, unless (i) there are no
Obligations outstanding at the time of the entry of such an order and there is
no requirement that Agent or any DIP Lender extend any additional Obligations,
(ii) such Indebtedness is used immediately to indefeasibly and finally pay the
Obligations in cash in full, or (iii) such Indebtedness constitutes Debt
permitted under SECTION 5.1 or (b) permits any Credit Party the right to use
Collateral other than in accordance with the terms of the applicable Financing
Order, unless (i) there are no Obligations outstanding at the time of the entry
of such an order and there is no requirement that Agent or any DIP Lender extend
any additional Obligations or (ii) such Collateral is used immediately to
indefeasibly and finally pay the Obligations in cash in full;

            (w) an order shall be entered in the Bankruptcy Cases granting any
Person relief from the automatic stay so as to permit such Person to proceed
against any property of any Credit Party with a value in excess of $275,000;

                                       54
<PAGE>

            (x) (i) an "Event of Default" as defined in the Accommodation
Agreement dated as of August 28, 2003 by and among Amcast Industrial
Corporation, General Motors Corporation, the Prepetition Agent on behalf of the
Prepetition Lenders, and the Prepetition Noteholders (the "ACCOMMODATION
AGREEMENT") or a "Default" as defined in the Access and Security Agreement dated
as of August 28, 2003 by and among Amcast Industrial Corporation and General
Motors Corporation (the "ACCESS AND SECURITY AGREEMENT") shall have occurred, or
(ii) the Accommodation Agreement or the Access and Security Agreement shall have
terminated;

            (y) failure of Borrower to reach an agreement (subject to approval
of the Bankruptcy Court) on terms and conditions reasonably satisfactory to
Agent and the Required DIP Lenders to hire a chief restructuring officer ("CRO")
within 25 days of the Petition Date;

            (z) notice shall be given of a sale of all or any portion of the
Collateral pursuant to Section 363 of the Bankruptcy Code, which sale (A) is not
permitted hereunder, (B) affects assets with a value in excess of $500,000 in
Required DIP Lenders' reasonable judgment, or (C) to which the Required DIP
Lenders hereunder have not consented;

            (aa) any payment on, or application is made with the Bankruptcy
Court for authority to pay, any prepetition claim owing to terminated employees,
bond claims, principal on any Debt of any Credit Party incurred prior to the
Petition Date, and lease rejection damages, other than those permitted to be
paid in accordance with the DIP Loan Documents, without the prior written
consent of the Required DIP Lenders;

            (bb) any change shall occur after the Effective Date in any Credit
Party's business, assets, prospects, financial conditions or income, taken as a
whole, or any event or condition exists, which in any case would, in the
reasonable judgment of Agent and Required DIP Lenders, be reasonably likely to
have a Material Adverse Effect;

            (cc) filing of a proposed plan of reorganization by any Credit Party
that is inconsistent with the Lockup and Voting Agreement;

            (dd) any attempt by Borrower to obtain, or if any other party in
interest obtains, an order of the Bankruptcy Court or other judgment, the effect
of which is to invalidate, reduce or otherwise impair Agent's, Prepetition
Agent's, Prepetition Collateral Agent's, any DIP Lender's, any Prepetition
Lender's, or any Prepetition Noteholder's claims, or to subject the Collateral
or the Prepetition Collateral to a material surcharge pursuant to Section 506(c)
of the Bankruptcy Code; or

            (ee) any Credit Party shall apply for an order substituting any
assets for all or any portion of the Post-Petition Collateral, except as
provided in the DIP Loan Documents.

            SECTION 9.2 ACCELERATION AND SUSPENSION OR TERMINATION OF AGGREGATE
COMMITMENT.

            Upon the occurrence and during the continuance of an Event of
Default, Agent may, and shall if requested by Required DIP Lenders (i) by notice
to Borrower suspend or terminate the Aggregate Commitment, in whole or in part
(and, if in part, such reduction shall be pro rata in accordance with each DIP
Lender's Commitment Percentage) and/or (ii) by notice to

                                       55
<PAGE>

Borrower declare the Obligations to be, and the Obligations shall thereupon
become, immediately due and payable without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by Borrower and
Borrower will pay the same, subject to the applicable Financing Order. Without
limiting the foregoing, following acceleration of the Obligations (or any
portion thereof), subject to the Bankruptcy Court's power to issue appropriate
orders under Section 105 of the Bankruptcy Code, the Agent shall have the
ability to exercise, or refrain from exercising, any and all rights available to
it pursuant to the DIP Loan Documents and applicable law; provided that prior to
the repayment in full of all Obligations in immediately available funds, and the
termination of the Aggregate Commitment, the Agent shall, subject to the
indemnification provisions and all other provisions set forth in ARTICLE 11
hereof, act, with respect to the Collateral, in the manner directed by the
Required DIP Lenders.

            SECTION 9.3 DEFAULT RATE OF INTEREST.

            Effective immediately upon the occurrence of an Event of Default and
for so long as the Event of Default continues, the Loans and other Obligations
shall bear interest at rates that are two percent (2.0%) per annum in excess of
the rates otherwise payable under this DIP Credit Agreement.

            SECTION 9.4 SETOFF RIGHTS.

            During the continuance of any Event of Default, each DIP Lender is
hereby authorized by Borrower at any time or from time to time, with reasonably
prompt subsequent notice to Borrower (any prior or contemporaneous notice being
hereby expressly waived) to set off and to appropriate and to apply any and all
(A) balances held by such DIP Lender at any of its offices for the account of
Borrower or any Guarantors (regardless of whether such balances are then due to
Borrower or such Guarantors), and (B) other property at any time held or owing
by such DIP Lender to or for the credit or for Borrower's account or any
Guarantors, against and on account of any of the Obligations; except that no DIP
Lender shall exercise any such right without the prior written consent of Agent.
Any DIP Lender exercising a right to set off shall, in a manner which gives full
effect to the order of application of proceeds set forth in SECTION 9.6,
purchase for cash (and the other DIP Lenders shall sell) interests in each of
such other DIP Lender's Pro Rata Share of the Obligations as would be necessary
to cause all DIP Lenders to share the amount so set off with each other DIP
Lender in accordance with their respective Pro Rata Share of the Obligations.
Each Credit Party agrees, to the fullest extent permitted by law, that any DIP
Lender may exercise its right to set off with respect to the Obligations as
provided in this SECTION 9.4.

            SECTION 9.5 APPLICATION OF PROCEEDS.

            Notwithstanding anything to the contrary contained in this DIP
Credit Agreement, subject to the applicable Financing Order, (a) Borrower
irrevocably waives the right to direct the application of any and all payments
at any time or times received by Agent from or on behalf of Borrower or any
Guarantor of all or any part of the Obligations, and Agent shall have the
continuing and exclusive right to apply and to reapply any and all payments
received at any time or times against the Obligations in such manner as Agent
may deem advisable notwithstanding any previous application by Agent or DIP
Lenders (provided that as among the Agent and the DIP Lenders, for so long as no
Event of Default exists, all accrued and unpaid interest, to the

                                       56
<PAGE>

extent due and payable in cash hereunder, shall be satisfied with payments made
by Borrower to the Agent, prior to the satisfaction of any principal
Obligations) and (b) the proceeds of any sale of, or other realization upon, all
or any part of the Collateral and all payments and distributions made by any
Credit Party with respect to the Obligations, shall be applied (subject to the
Reinvestment Reserve absent an Event of Default): first, to all fees, costs,
indemnities and expenses incurred by or owing to Agent, with respect to this DIP
Credit Agreement, the other DIP Loan Documents or the Collateral; second, to all
fees, costs, indemnities and expenses incurred by or owing to any DIP Lender
with respect to this DIP Credit Agreement, the other DIP Loan Documents, or the
Collateral, third, to accrued and unpaid interest on the Obligations (including
any interest which but for the provisions of the Bankruptcy Code, would have
accrued on such amounts), fourth, to the principal amount of the Obligations
outstanding; and fifth, to any other indebtedness or obligations of Borrower
owing to Agent, any DIP Lender or any Designated DIP Lender Affiliate under the
DIP Loan Documents or with respect to Ancillary Services, including without
limitation fees, costs, indemnities and expenses thereunder. Any balance
remaining shall be delivered to whomever may be lawfully entitled to receive
such balance or as a court of competent jurisdiction may direct.

                                   ARTICLE 10
                EXPENSES, INDEMNITY, TAXES AND RIGHT TO PERFORM

            SECTION 10.1 EXPENSES.

            Each Credit Party jointly and severally hereby agrees to promptly
pay within two business day's of receipt of an invoice therefor (except where
subject to a reasonable dispute) (i) all reasonable costs and expenses of Agent
and Highland (including, without limitation, the reasonable fees, costs and
expenses of counsel to, and independent appraisers and consultants retained by
Agent or Highland including, without limitation, Haynes and Boone, LLP, Hahn,
Loeser & Parks LLP, and Barrier Advisors, L.P. in connection with the
examination, review, due diligence investigation (including, without limitation,
environmental due diligence investigation), documentation, negotiation, closing
and syndication of the transactions contemplated by the DIP Loan Documents, in
connection with the performance by Agent and such holders of their respective
rights and remedies under the DIP Loan Documents and in connection with the
continued administration of the DIP Loan Documents including any amendments,
modifications, consents and waivers to and/or under any and all DIP Loan
Documents, (ii) without limitation of the preceding CLAUSE (i), all costs and
expenses of Agent, Highland or their designee in connection with the creation,
perfection and maintenance of Liens pursuant to the DIP Loan Documents,
including title investigations, (iii) without limitation of the preceding CLAUSE
(i), expenses of Agent, Highland, or their designee in connection with the
Bankruptcy Cases (including reasonable attorneys' fees and expenses incurred in
connection with any action to lift the automatic stay of Section 362 of the
Bankruptcy Code, any other action or participation by Agent, Highland or their
designee or any such holder in the Bankruptcy Cases, or any other action or
participation by Agent, Highland or their designee in a suit or proceeding
brought in a venue other than the Bankruptcy Court, or any defense or
participation by Agent, Highland or their designee or any such holder) with
respect to any DIP Lender liability or other actions in the Bankruptcy Cases
involving Agent, Highland or their designee or any such holder), (iv) without
limitation of the preceding CLAUSE (i), expenses of Agent, Highland or their
designee in connection with protecting, storing, insuring, handling, maintaining
or selling any Collateral and in connection with any workout, collection,
bankruptcy, insolvency and other

                                       57
<PAGE>

enforcement proceedings under any and all of the DIP Loan Documents, and (v) all
costs and expenses incurred by DIP Lenders in connection with any workout,
collection, bankruptcy, insolvency and other enforcement proceedings under any
and all DIP Loan Documents.

            SECTION 10.2 INDEMNITY.

            Each Credit Party jointly and severally hereby agrees to indemnify,
pay and hold harmless Agent, Highland, and DIP Lenders and the officers,
directors, employees, agents, and counsel of Agent, Highland, and DIP Lenders
(collectively called the "INDEMNITEES") from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs, taxes, governmental assessments, expenses and disbursements of
any kind or nature whatsoever (including the fees and disbursements of counsel
for such Indemnitee) in connection with any investigative, administrative or
judicial proceeding, whether or not such Indemnitee shall be designated a party
thereto and including any such proceeding initiated by or on behalf of a Credit
Party, and the reasonable expenses of investigation by engineers, environmental
consultants and similar technical personnel and any commission, fee or
compensation claimed by any broker (other than any broker retained by Agent or
DIP Lenders) asserting any right to payment for the transactions contemplated
hereby, which may be imposed on, incurred by or asserted against such Indemnitee
as a result of or in connection with the transactions contemplated hereby or by
the other DIP Loan Documents (including (i)(A) as a direct or indirect result of
the presence on, under or about, or escape, seepage, leakage, spillage,
discharge, emission or Release or threatened Release from, any property now or
previously owned, leased or operated by Borrower or any Guarantor of any
Hazardous Materials or any Hazardous Materials Contamination, (B) arising out of
or relating to the offsite disposal of any materials generated or present on any
such property generated or disposed of by any Credit Party or (C) arising out of
or resulting from the environmental condition of any such property or the
applicability of any governmental requirements relating to Hazardous Materials,
whether or not occasioned wholly or in part by any condition, accident or event
caused by any act or omission of Borrower or any Guarantor, and (ii) proposed
and actual extensions of credit under this DIP Credit Agreement) and the use or
intended use of the proceeds of the Loans, except that no Credit Party shall
have any obligation hereunder to an Indemnitee with respect to any liability
resulting from the gross negligence or willful misconduct of such Indemnitee, as
determined in a final non-appealable judgment by a court of competent
jurisdiction. To the extent that the undertaking set forth in the immediately
preceding sentence may be unenforceable, Borrower shall contribute the maximum
portion which it is permitted to pay and satisfy under applicable law to the
payment and satisfaction of all such indemnified liabilities incurred by the
Indemnitees or any of them. If and to the extent the Committee obtains a final
judgment against the Agent and DIP Lenders in connection with a claim or cause
of action prosecuted by it pursuant to SECTION 10(a) of the Financing Order, or
to the extent the Committee receives a payment from the Agent and DIP Lenders in
settlement or compromise thereof, the foregoing indemnity shall not be
applicable; provided, however, that such indemnity shall be applicable to the
extent of Agent's and the DIP Lenders' fees, costs and expenses incurred in
connection with any such action that is resolved by settlement or compromise.
This indemnification obligation includes both statutory and common law strict
liability claims, as well as negligence, strict liability and all other claims
arising under Environmental Laws, the Comprehensive Environmental Response
Compensation and Liability Act and ambiguous state laws.

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            SECTION 10.3 TAXES.

            Each Credit Party jointly and severally agrees to pay all
governmental assessments, charges or taxes (except income or other similar taxes
imposed on Agent or DIP Lenders), including any interest or penalties thereon,
at any time payable or ruled to be payable in respect of the existence,
execution or delivery of this DIP Credit Agreement or the other DIP Loan
Documents and to indemnify and hold Agent and DIP Lenders harmless against
liability in connection with any such assessments, charges or taxes.

            SECTION 10.4 RIGHT TO PERFORM.

            If any Credit Party fails to perform any obligation hereunder or
under any other DIP Loan Document, Agent itself may, but shall not be obligated
to, cause such obligation to be performed at the Credit Parties' expense and
each Credit Party agrees to reimburse Agent therefor on demand. All amounts
owing hereunder or under any other DIP Loan Document may be satisfied in full,
subject to the provisions of SECTION 2.1(a)(ii), through the making of
Protective Advances.

                                   ARTICLE 11
                                     AGENT

            SECTION 11.1 APPOINTMENT AND AUTHORIZATION.

            Each DIP Lender hereby irrevocably ratifies Agent's prior entry
into, and appoints and authorizes Agent to enter into, each of the Security
Documents on its behalf and to take such actions as Agent on its behalf and to
exercise such powers under the DIP Loan Documents as are delegated to Agent by
the terms thereof, together with all such powers as are reasonably incidental
thereto. Except as otherwise expressly provided in SECTION 12.5 or by the terms
of the DIP Loan Documents, Agent is authorized and empowered to amend, modify,
or waive any provisions of this DIP Credit Agreement or the other DIP Loan
Documents on behalf of DIP Lenders. The provisions of this ARTICLE 11 are solely
for the benefit of Agent and DIP Lenders and neither Borrower nor any other
Credit Party shall have any rights as a third party beneficiary of any of the
provisions hereof. In performing its functions and duties under this DIP Credit
Agreement, Agent shall act solely as agent of DIP Lenders and does not assume
and shall not be deemed to have assumed any obligation toward or relationship of
agency or trust with or for Borrower or any other Credit Party. Agent may
perform any of its duties hereunder, or under the DIP Loan Documents, by or
through its agents, designees, or employees.

            SECTION 11.2 AGENT AND AFFILIATES.

            Agent shall have the same rights and powers under the DIP Loan
Documents as any other DIP Lender and may exercise or refrain from exercising
the same as though it were not Agent, and Agent and its Affiliates may lend
money to, invest in and generally engage in any kind of business with each
Credit Party or Affiliate of any Credit Party as if it were not Agent hereunder.

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            SECTION 11.3 ACTION BY AGENT.

            The duties of Agent shall be mechanical and administrative in
nature. Agent shall not have by reason of this DIP Credit Agreement a fiduciary
relationship in respect of any DIP Lender. Nothing in this DIP Credit Agreement
or any of the DIP Loan Documents, express or implied, is intended to or shall be
construed to impose upon Agent any obligations in respect of this DIP Credit
Agreement or any of the DIP Loan Documents except as expressly set forth herein
or therein.

            SECTION 11.4 CONSULTATION WITH EXPERTS.

            Agent may consult with legal counsel, independent public accountants
and other experts selected by it and shall not be liable for any action taken or
omitted to be taken by it in good faith in accordance with the advice of such
counsel, accountants or experts.

            SECTION 11.5 LIABILITY OF AGENT.

            Neither Agent nor any of its directors, officers, agents or
employees shall be liable to any DIP Lender for any action taken or not taken by
it in connection with the DIP Loan Documents, except that Agent shall be liable
to the extent of its own gross negligence or willful misconduct as determined by
a court of competent jurisdiction. Neither Agent nor any of its directors,
officers, agents or employees shall be responsible for or have any duty to
ascertain, inquire into or verify (i) any statement, warranty or representation
made in connection with any DIP Loan Document or any borrowing hereunder; (ii)
the performance or observance of any of the covenants or agreements specified in
any DIP Loan Document; (iii) the satisfaction of any condition specified in any
DIP Loan Document, except receipt of items required to be delivered to Agent;
(iv) the validity, effectiveness, sufficiency or genuineness of any DIP Loan
Document, any Lien purported to be created or perfected thereby or any other
instrument or writing furnished in connection therewith; (v) the existence or
non-existence of any Default or Event of Default; or (vi) the financial
condition of any Credit Party. Agent shall not incur any liability by acting in
reliance upon any notice, consent, certificate, statement, or other writing
(which may be a bank wire, telex, facsimile or electronic transmission or
similar writing) believed by it to be genuine or to be signed by the proper
party or parties. Agent shall not be liable for any apportionment or
distribution of payments made by it in good faith and if any such apportionment
or distribution is subsequently determined to have been made in error the sole
recourse of any DIP Lender to whom payment was due but not made, shall be to
recover from other DIP Lenders any payment in excess of the amount to which they
are determined to be entitled (and such other DIP Lenders hereby agree to return
to such DIP Lender any such erroneous payments received by them).

            SECTION 11.6 INDEMNIFICATION.

            Each DIP Lender shall, in accordance with its Pro Rata Share,
indemnify Agent (to the extent not reimbursed pursuant to SECTIONS 10.1 or 10.2)
against any cost, expense (including counsel fees and disbursements), claim,
demand, action, loss or liability (except such as result from Agent's gross
negligence or willful misconduct as determined in a non-appealable judgment by a
court of competent jurisdiction) that Agent may suffer or incur in connection
with the DIP Loan Documents or any action taken or omitted by Agent hereunder or
thereunder. If

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any indemnity furnished to Agent for any purpose shall, in the opinion of Agent,
be insufficient or become impaired, Agent may call for additional indemnity and
cease, or not commence, to do the acts indemnified against even if so directed
by Required DIP Lenders, or such other portion of the DIP Lenders as shall be
prescribed by this DIP Credit Agreement, until such additional indemnity is
furnished. The obligations of DIP Lenders under this SECTION 11.6 shall survive
the payment in full of the Obligations, any Bankruptcy Cases, and the
termination of this DIP Credit Agreement.

            SECTION 11.7 RIGHT TO REQUEST AND ACT ON INSTRUCTIONS.

            Agent may at any time request instructions from DIP Lenders with
respect to any actions or approvals which by the terms of this DIP Credit
Agreement or of any of the DIP Loan Documents Agent is permitted or desires to
take or to grant, and if such instructions are promptly requested, Agent shall
be absolutely entitled to refrain from taking any action or to withhold any
approval and shall not be under any liability whatsoever to any Person for
refraining from any action or withholding any approval under any of the DIP Loan
Documents until it shall have received such instructions from Required DIP
Lenders or all or such other portion of the DIP Lenders as shall be prescribed
by this DIP Credit Agreement. Without limiting the foregoing, no DIP Lender
shall have any right of action whatsoever against Agent as a result of Agent
acting or refraining from acting under this DIP Credit Agreement or any of the
other DIP Loan Documents in accordance with the instructions of Required DIP
Lenders or such other portion of DIP Lenders and, notwithstanding the
instructions of Required DIP Lenders or such other portion of DIP Lenders, Agent
shall have no obligation to take any action if it believes, in good faith, that
such action exposes Agent to any liability for which it has not received
satisfactory indemnification in accordance with the provisions of SECTION 11.6.

            SECTION 11.8 CREDIT DECISION.

            Each DIP Lender acknowledges that it has, independently and without
reliance upon Agent or any other DIP Lender, and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this DIP Credit Agreement. Each DIP Lender also
acknowledges that it will, independently and without reliance upon Agent or any
other DIP 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 any action under the DIP Loan Documents.

            SECTION 11.9 COLLATERAL MATTERS.

            DIP Lenders irrevocably authorize Agent, at its option and in its
discretion, to release any Lien granted to or held by Agent under any Security
Document (i) upon termination of the Aggregate Commitment and payment in full of
all Obligations (other than contingent indemnification claims which have not
been asserted), or (ii) constituting property sold or to be sold or disposed of
as part of or in connection with any disposition permitted under any DIP Loan
Document (it being understood and agreed that Agent may conclusively rely
without further inquiry on a certificate of a Responsible Officer as to the sale
or other disposition of property being made in full compliance with the
provisions of the DIP Loan Documents). Upon request by Agent at any time, DIP
Lenders will confirm in writing Agent's authority to release particular types or
items of Collateral pursuant to this SECTION 11.9.

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            SECTION 11.10 AGENCY FOR PERFECTION.

            Agent and each DIP Lender hereby appoint each other DIP Lender as
agent for the purpose of perfecting Agent's security interest in assets which,
in accordance with the Uniform Commercial Code in any applicable jurisdiction,
can be perfected by possession or control. Should any DIP Lender (other than
Agent) obtain possession or control of any such assets, such DIP Lender shall
notify Agent thereof, and, promptly upon Agent's request therefore, shall
deliver such assets to Agent or in accordance with Agent's instructions or
transfer control to Agent in accordance with Agent's instructions. Each DIP
Lender agrees that it will not have any right individually to enforce or seek to
enforce any Security Document or to realize upon any Collateral for the Loans
unless instructed to do so by Agent, it being understood and agreed that such
rights and remedies may be exercised only by Agent.

            SECTION 11.11 NOTICE OF DEFAULT.

            Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default except with respect to defaults in
the payment of principal, interest and fees required to be paid to Agent for the
account of DIP Lenders, unless Agent shall have received written notice from a
DIP Lender or Borrower referring to this DIP Credit Agreement, describing such
Default or Event of Default and stating that such notice is a "notice of
default". Agent will notify each DIP Lender of its receipt of any such notice.
Agent shall take such action with respect to such Default or Event of Default as
may be requested by Required DIP Lenders, or such other portion of the DIP
Lenders as shall be prescribed by this DIP Credit Agreement, in accordance with
the terms hereof. Unless and until Agent has received any such request, Agent
may (but shall not be obligated to) take such action, or refrain from taking
such action, with respect to such Default or Event of Default as it shall deem
advisable or in the best interests of DIP Lenders.

            SECTION 11.12 SUCCESSOR AGENT.

            Agent may resign at any time by giving 30 days' written notice
thereof to the DIP Lenders and Borrower. Upon any such resignation, Required DIP
Lenders shall have the right to appoint a successor Agent. If no successor Agent
shall have been so appointed by Required DIP Lenders, and shall have accepted
such appointment, within thirty (30) days after the retiring Agent gives notice
of resignation, then the retiring Agent may, on behalf of DIP Lenders, appoint a
successor Agent, which shall be a financial institution organized or licensed
under the laws of the United States of America or of any State thereof. Upon the
acceptance of its appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the rights
and duties of the retiring Agent, and the retiring Agent shall be discharged
from its duties and obligations hereunder. After any retiring Agent's
resignation hereunder as Agent, the provisions of this Article shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Agent.

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            SECTION 11.13 DISBURSEMENTS OF LOANS; PAYMENT.

            (a) Loan Advances, Payments and Settlements; Interest and Fee
Payments.

            (i) Agent shall have the right, on behalf of DIP Lenders, to
disburse funds to Borrower for all Loans requested by Borrower pursuant to the
terms of this DIP Credit Agreement. Absent the prior receipt by Agent of a
written notice from any DIP Lender pursuant to which such DIP Lender notifies
Agent that such DIP Lender shall cease making Loans (whether due to the
existence of a Default or Event of Default or otherwise), Agent shall be
conclusively entitled to assume, for purposes of the preceding sentence, that
each DIP Lender will fund its Pro Rata Share of all Loans requested by Borrower.
Each DIP Lender shall reimburse Agent on demand, in accordance with the
provisions of the immediately following paragraph, for all funds disbursed on
its behalf by Agent pursuant to the preceding sentence, or if Agent so requests,
each DIP Lender will remit to Agent its Pro Rata Share of any Loan before Agent
disburses the same to Borrower. If Agent elects to require that each DIP Lender
make funds available to Agent, prior to a disbursement by Agent to Borrower,
Agent shall advise each DIP Lender by telephone, facsimile or e-mail of the
amount of such DIP Lender's Pro Rata Share of the Loan requested by Borrower no
later than noon (Central time) on the date of funding of such Loan, and each
such DIP Lender shall pay Agent on such date such DIP Lender's Pro Rata Share of
such requested Loan, in same day funds, by wire transfer to the Payment Account,
or such other account as may be identified in writing by Agent to DIP Lenders
from time to time. If any DIP Lender fails to pay the amount of its Pro Rata
Share within one (1) Business Day after Agent's demand, Agent shall promptly
notify Borrower, and Borrower shall repay such amount to Agent within two (2)
Business Days. Any repayment required pursuant to this SECTION 11.13 shall be
without premium or penalty. Nothing in this SECTION 11.13 or elsewhere in this
DIP Credit Agreement or the other DIP Loan Documents shall be deemed to require
Agent to advance funds on behalf of any DIP Lender or to relieve any DIP Lender
from its obligation to fulfill its commitments hereunder or to prejudice any
rights that Agent or Borrower may have against any DIP Lender as a result of any
default by such DIP Lender hereunder.

            (ii) Upon any DIP Lender's request from time to time (each such day
being a "SETTLEMENT DATE"), Agent will advise each DIP Lender by telephone,
facsimile or e-mail of the amount of each such DIP Lender's Pro Rata Share of
the Loan balance (including any Protective Advances) as of the close of business
of the Business Day immediately preceding. In the event that payments are
necessary to adjust the amount of such DIP Lender's actual Pro Rata Share of the
Loan balance to such DIP Lender's required Pro Rata Share of the Loan balance as
of any Settlement Date, the party from which such payment is due (i) shall be
deemed, irrevocably and unconditionally, to have purchased, without recourse or
warranty, an undivided interest and participation in the Loans sufficient to
equate such DIP Lender's actual Pro Rata Share of the Loan balance as of such
Settlement Date with such DIP Lender's required Pro Rata Share of the Loans as
of such date and (ii) shall pay Agent, without setoff or discount, in same day
funds, by wire transfer to the Payment Account not later than noon (Central
time) on the Business Day following such date the full purchase price for such
interest and participation, equal to one hundred percent (100%) of the principal
amount of the Loans being purchased and sold. In the event settlement shall not
have occurred by the date and time specified in the immediately preceding
sentence, interest shall accrue on the unsettled amount at the Federal Funds
Rate, for

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the first three (3) days following the scheduled date of settlement, and
thereafter at the Prime Rate plus the Prime Rate Margin.

            (iii) Upon receipt, Agent shall advise each DIP Lender by telephone,
facsimile or e-mail of the amount of such DIP Lender's Pro Rata Share of
principal, interest and fees paid for the benefit of DIP Lenders with respect to
each applicable Loan, to the extent of such DIP Lender's credit exposure with
respect thereto, and shall make payment to such DIP Lender not later than noon
(Central time) on the Business Day following the date of receipt of such amounts
in accordance with wire instructions delivered by such DIP Lender to Agent, as
the same may be modified from time to time by written notice to Agent; provided
that, in the case such DIP Lender is a Defaulted DIP Lender, Agent shall be
entitled to set off the funding short-fall against that Defaulted DIP Lender's
respective share of all payments received from Borrower.

            (iv) The provisions of this SECTION 11.13(a) shall be deemed to be
binding upon Agent and DIP Lenders notwithstanding the occurrence of any Default
or Event of Default, or any insolvency or bankruptcy proceeding pertaining to
Borrower or any other Credit Party.

            (b) Return of Payments.

            (i) If Agent pays an amount to a DIP Lender under this DIP Credit
Agreement in the belief or expectation that a related payment has been or will
be received by Agent from Borrower or any Guarantor and such related payment is
not received by Agent, then Agent will be entitled to recover such amount from
such DIP Lender on demand without setoff, counterclaim or deduction of any kind,
together with interest accruing on a daily basis at the Federal Funds Rate.

            (ii) If Agent determines at any time that any amount received by
Agent under this DIP Credit Agreement must be returned to Borrower or paid to
any other Person pursuant to any insolvency law or otherwise, then,
notwithstanding any other term or condition of this DIP Credit Agreement or any
other DIP Loan Document, Agent will not be required to distribute any portion
thereof to any DIP Lender. In addition, each DIP Lender will repay to Agent on
demand any portion of such amount that Agent has distributed to such DIP Lender,
together with interest at such rate, if any, as Agent is required to pay to
Borrower or such other Person, without setoff, counterclaim or deduction of any
kind.

            (c) Defaulted DIP Lenders. The failure of any Defaulted DIP Lender
to make any Loan, or any payment required by it hereunder shall not relieve any
other DIP Lender of its obligations to make such Loan or payment, but neither
any DIP Lender nor Agent shall be responsible for the failure of any Defaulted
DIP Lender to make a Loan, or make any other payment required hereunder.
Notwithstanding anything set forth herein to the contrary, at the election of
Agent, a Defaulted DIP Lender shall not have any voting or consent rights under
or with respect to any DIP Loan Document or constitute a "DIP Lender" (or be
included in the calculation of "Required DIP Lenders" hereunder) for any voting
or consent rights under or with respect to any DIP Loan Document. At Borrower's
request, Agent or a Person reasonably acceptable to Agent shall have the right
with Agent's consent and in Agent's sole discretion (but shall have no
obligation) to purchase from any Defaulted DIP Lender, and each Defaulted DIP
Lender agrees that it shall, at Agent's request, sell and assign to Agent or
such Person, all of the lending commitments and commitment interests of that
Defaulted DIP Lender for an amount

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equal to the principal balance of all Loans held by such Defaulted DIP Lender
and all accrued interest and fees with respect thereto through the date of sale,
such purchase and sale to be consummated pursuant to an executed Assignment
Agreement.

                                   ARTICLE 12
                                    GUARANTY

            Each Guarantor hereby absolutely and unconditionally guarantees, as
a guarantee of payment and not merely as a guarantee of collection, prompt
payment when due, whether at stated maturity, upon acceleration or otherwise,
and at all times thereafter, of any and all existing and future indebtedness and
liabilities of every kind, nature and character, direct or indirect, absolute or
contingent, liquidated or unliquidated, voluntary or involuntary, of Borrower to
Agent and the DIP Lenders arising under this DIP Credit Agreement and all
instruments, agreements and other documents of every kind and nature now or
hereafter executed in connection with this DIP Credit Agreement (including all
renewals, extensions and modifications thereof and all costs, reasonable
attorneys' fees and expenses incurred by Agent or any DIP Lender in connection
with the collection or enforcement thereof) (collectively, the "GUARANTEED
OBLIGATIONS"). Agent's and the DIP Lenders' books and records showing the amount
of the Guaranteed Obligations shall be admissible in evidence in any action or
proceeding, and shall, absent manifest error, be binding upon each Guarantor and
conclusive for the purpose of establishing the amount of the Guaranteed
Obligations. This Guaranty shall not be affected by the genuineness, validity,
regularity or enforceability of the Guaranteed Obligations or any instrument or
agreement evidencing any Guaranteed Obligations, or by the existence, validity,
enforceability, perfection, or extent of any collateral therefor, or by any fact
or circumstance relating to the Guaranteed Obligations which might otherwise
constitute a defense to the obligations of the Guarantors hereunder. This
Guaranty is a continuing and irrevocable guaranty of all Guaranteed Obligations
now or hereafter existing and shall remain in full force and effect until all
Guaranteed Obligations and any other amounts payable under this Guaranty are
indefeasibly paid and performed in full and any commitments of the DIP Lenders
or facilities provided by the DIP Lenders with respect to the Guaranteed
Obligations are terminated. The obligations of each Guarantor hereunder are
those of primary obligor, and not merely as surety, and are independent of the
Guaranteed Obligations. Each Guarantor waives diligence by Agent or any DIP
Lender and action on delinquency in respect of the Guaranteed Obligations or any
part thereof, including, without limitation any provisions of law requiring
Agent or any DIP Lender to exhaust any right or remedy or to take any action
against Borrower, any other guarantor or any other person, entity or property
before enforcing this Guaranty against the Guarantors. Each Guarantor waives
notice of the acceptance of this Guaranty and of the extension or continuation
of the Guaranteed Obligations or any part thereof. Each Guarantor further waives
presentment, protest, notice, dishonor or default, demand for payment and any
other notices to which any Guarantor might otherwise be entitled.

            No Guarantor shall exercise any right of subrogation, contribution
or similar rights with respect to any payments it makes hereunder until all of
the Guaranteed Obligations and any amounts payable hereunder are indefeasibly
paid and performed in full and any commitments of the DIP Lenders or facilities
provided by the DIP Lenders with respect to the Guaranteed Obligations are
terminated. If any amounts are paid to any Guarantor in violation of

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the foregoing limitation, then such amounts shall be held in trust for the
benefit of Agent and the DIP Lenders and shall forthwith be paid to Agent to
reduce the amount of the Guaranteed Obligations, whether matured or unmatured.

            Each Guarantor agrees that Agent and the DIP Lenders may, at any
time and from time to time, and without notice to the Guarantors, make any
agreement with Borrower or with any other person or entity liable on any of the
Guaranteed Obligations or providing collateral as security for the Guaranteed
Obligations, for the extension, renewal, payment, compromise, discharge or
release of the Guaranteed Obligations or any collateral (in whole or in part),
or for any modification or amendment of the terms thereof or of any instrument
or agreement evidencing the Guaranteed Obligations or the provision of
collateral, all without in any way impairing, releasing, discharging or
otherwise affecting the obligations of any Guarantor hereunder. Each Guarantor
waives any defense arising by reason of any disability or other defense of any
Borrower or any other guarantor and waives the benefit of any statute of
limitations affecting the liability of the Guarantors hereunder. Each Guarantor
waives any right to enforce any remedy which Agent or the DIP Lenders now have
or may hereafter have against Borrower and waives any benefit of and any right
to participate in any security now or hereafter held by Agent or any DIP Lender.
Further, each Guarantor consents to the taking of, or failure to take, any
action which might in any manner or to any extent vary the risks of the
Guarantors hereunder or which, but for this provision, might operate as a
discharge of the Guarantors.

            Each Guarantor acknowledges and agrees that it has the sole
responsibility for, and has adequate means of, obtaining from Borrower such
information concerning the financial condition, business and operations of
Borrower as such Guarantor requires, and that neither Agent nor any of the DIP
Lenders have any duty, and each such Guarantor is not relying on Agent or any
DIP Lender at any time, to disclose to the Guarantors any information relating
to the business, operations or financial condition of Borrower.

                                   ARTICLE 13
                                 MISCELLANEOUS

            SECTION 13.1 SURVIVAL.

            All agreements, representations and warranties made herein and in
every other DIP Loan Document shall survive the execution and delivery of this
DIP Credit Agreement and the other DIP Loan Documents. The indemnities and
agreements set forth in ARTICLE 6 and ARTICLE 10 shall survive the payment of
the Obligations and any termination of this DIP Credit Agreement.

            SECTION 13.2 NO WAIVERS.

            No failure or delay by Agent or any DIP Lender in exercising any
right, power or privilege under any DIP Loan Document shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies herein and therein provided shall be cumulative and not
exclusive of any rights or remedies provided by law.

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            SECTION 13.3 NOTICES.

            All notices, requests and other communications to any party
hereunder shall be in writing (including prepaid overnight courier, facsimile
transmission, similar writing, or in the case of communications among Agent and
DIP Lenders only, e-mail) and shall be given to such party at its address,
facsimile number or e-mail address set forth on ANNEX C attached hereto (or, in
the case of any such DIP Lender who becomes a DIP Lender after the date hereof,
in an Assignment Agreement or in a notice delivered to Borrower and Agent by the
assignee DIP Lender forthwith upon such assignment) or at such other address,
facsimile number or e-mail address as such party may hereafter specify for the
purpose by notice to Agent and Borrower. Each such notice, request or other
communication shall be effective (i) if given by facsimile or e-mail, when such
notice is transmitted to the facsimile number or e-mail address specified by
this Section or (ii) if given by mail, prepaid overnight courier or any other
means, when received at the applicable address specified by this Section. Notice
required to be sent hereunder to the Committee shall be sent by e-mail or
facsimile.

            SECTION 13.4 SEVERABILITY.

            In case any provision of or obligation under this DIP Credit
Agreement or any other DIP 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 13.5 AMENDMENTS AND WAIVERS.

            Any provision of this DIP Credit Agreement or the Notes may be
amended or waived if, but only if, such amendment or waiver is in writing and is
signed by Borrower and, prior to the repayment in full of all Obligations in
immediately available funds and termination of the Aggregate Commitment, the
Required DIP Lenders; provided that no such amendment or waiver shall, unless
signed by all the DIP Lenders: (i) increase any DIP Lender's Commitment Amount,
(ii) reduce the principal of, rate of interest on or any fees with respect to
the Obligations; (iii) postpone the date fixed for any payment (other than a
prepayment pursuant to SECTION 2.3) of principal of any Loan, or of interest
thereon, or any fees hereunder with respect thereto or for any termination of
any commitment; (iv) change the definition of the term Required DIP Lenders or
the percentage of DIP Lenders which shall be required for DIP Lenders to take
any action hereunder; (v) amend or waive this SECTION 13.5 or the definitions of
the terms used in this SECTION 13.5 insofar as the definitions affect the
substance of this SECTION 13.5; (vi) consent to the assignment, delegation or
other transfer by any Credit Party of any of its rights and obligations under
any DIP Loan Document; (viii) amend the definition of the term "Borrowing Base",
except as expressly provided herein; (ix) amend the provisions of SECTION 9.6;
(x) release all or substantially all of the Collateral (provided that the
consent of Required DIP Lenders only will be necessary to approve a sale that
results in the repayment in full of all Obligations in immediately available
funds, and the termination of the Aggregate Commitment); or (xi) amend or waive
any provision of any DIP Loan Document that expressly requires the consent and
approval of "the DIP Lenders" or "all DIP Lenders."

                                       67
<PAGE>

            Borrower will provide copies of all amendments and waivers to the
Committee, promptly following the execution thereof.

            SECTION 13.6 ASSIGNMENTS; PARTICIPATIONS.

            (a) Assignments.

            (i) Any DIP Lender may at any time, following not less than three
(3) Business Days' prior written notice to Agent, assign to one or more Persons
(any such Person, an "ASSIGNEE") all or any portion of such DIP Lender's Loans
and interest in the Aggregate Commitment with the prior written consent of Agent
(which consent shall not be unreasonably withheld or delayed and shall not be
required for an assignment by a DIP Lender to another DIP Lender or to an
Affiliate of a DIP Lender), provided however, that any such Assignee shall be
bound by and subject to the terms and conditions of the Lockup and Voting
Agreement as though an original signatory thereto and each such assignment of
any DIP Lender's Loans shall specifically provide that the Assignee shall be
bound by and subject to the terms and conditions of the Lockup and Voting
Agreement as a condition to the effectiveness of any such assignment. Except as
Agent may otherwise agree, any such assignment shall be in a minimum aggregate
amount equal to $1,000,000 or, if less, the assignor's entire interests in the
Aggregate Commitment and outstanding Loans. Borrower and Agent shall be entitled
to continue to deal solely and directly with such DIP Lender in connection with
the interests so assigned to an Assignee until Agent shall have received and
accepted an effective Assignment Agreement executed, delivered and fully
completed by the applicable parties thereto and, unless such Assignee is a DIP
Lender or an Affiliate of a DIP Lender, a processing fee of $3,500. Any
attempted assignment not made in accordance with this SECTION 13.6(a) shall be
treated as the sale of a participation under SECTION 13.6(b).

            (ii) From and after the date on which the conditions described above
have been met, (i) such Assignee shall be deemed automatically to have become a
party hereto and to the Lockup and Voting Agreement and, to the extent that
rights and obligations hereunder have been assigned to such Assignee pursuant to
such Assignment Agreement, shall have the rights and obligations of a DIP Lender
hereunder and (ii) the assigning DIP Lender, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment
Agreement, shall be released from its rights (other than its indemnification
rights) and obligations hereunder. Upon the request of the Assignee (and, as
applicable, the assigning DIP Lender) pursuant to an effective Assignment
Agreement, Borrower shall execute and deliver to Agent for delivery to the
Assignee (and, as applicable, the assigning DIP Lender) a Note in the aggregate
principal amount of the Assignee's percentage interest in the Aggregate
Commitment (and, as applicable, a Note in the principal amount of that portion
of the Aggregate Commitment retained by the assigning DIP Lender). Upon receipt
by the assigning DIP Lender of such Note, the assigning DIP Lender shall return
to Borrower any prior Note held by it.

            (iii) Agent shall maintain at one of its offices a copy of each
Assignment Agreement delivered to it and a register for the recordation of the
names and addresses of each DIP Lender, and the commitments of, and principal
amount of the Loans owing to, such DIP Lender pursuant to the terms hereof. The
entries in such register shall be conclusive, and Borrower, Agent and DIP
Lenders may treat each Person whose name is recorded therein pursuant to the
terms hereof as a DIP Lender hereunder for all purposes of this DIP Credit

                                       68
<PAGE>

Agreement, notwithstanding notice to the contrary. Such register shall be
available for inspection by Borrower and any DIP Lender, at any reasonable time
upon reasonable prior notice to Agent.

            (iv) Notwithstanding the foregoing provisions of this SECTION
13.6(a) or any other provision of this DIP Credit Agreement, any DIP Lender may
at any time assign all or any portion of its Loans and its Note as collateral
security to a Federal Reserve Bank or, as applicable, to such DIP Lender's
trustee for the benefit of its investors (but no such assignment shall release
any DIP Lender from any of its obligations hereunder).

            (b) Participations.

            Any DIP Lender may at any time sell to one or more Persons
participating interests in its Loans, commitments or other interests hereunder
(any such Person, a "PARTICIPANT"). In the event of a sale by a DIP Lender of a
participating interest to a Participant, (a) such DIP Lender's obligations
hereunder shall remain unchanged for all purposes, (b) Borrower and Agent shall
continue to deal solely and directly with such DIP Lender in connection with
such DIP Lender's rights and obligations hereunder and (c) all amounts payable
by Borrower shall be determined as if such DIP Lender had not sold such
participation and shall be paid directly to such DIP Lender. No Participant
shall have any direct or indirect voting rights hereunder except with respect to
any event described in SECTION 13.5 expressly requiring the unanimous vote of
all DIP Lenders or, as applicable, all affected DIP Lenders. Each DIP Lender
agrees to incorporate the requirements of the preceding sentence into each
participation agreement which such DIP Lender enters into with any Participant.
Borrower agrees that if amounts outstanding under this DIP Credit Agreement are
due and payable (as a result of acceleration or otherwise), each Participant
shall be deemed to have the right of set-off in respect of its participating
interest in amounts owing under this DIP Credit Agreement to the same extent as
if the amount of its participating interest were owing directly to it as a DIP
Lender under this DIP Credit Agreement; provided that such right of set-off
shall be subject to the obligation of each Participant to share with DIP
Lenders, and DIP Lenders agree to share with each Participant, as provided in
SECTION 9.5.

            SECTION 13.7 HEADINGS.

            Headings and captions used in the DIP Loan Documents (including the
Exhibits, Schedules and Annexes hereto and thereto) are included for convenience
of reference only and shall not be given any substantive effect.

            SECTION 13.8 CONFIDENTIALITY.

            In handling any confidential information of any Credit Party, Agent
and each DIP Lender shall exercise the same degree of care that it exercises
with respect to its own proprietary information of the same types to maintain
the confidentiality of any non-public information thereby received or received
pursuant to this DIP Credit Agreement, except that disclosure of such
information may be made (i) to agents, employees, Guarantors, Affiliates,
attorneys and advisors of such Person in connection with its present or
prospective business relations with the Credit Parties arising out of the DIP
Loan Documents, (ii) to prospective transferees or purchasers of any interest in
the Loans, provided that they have agreed to be bound by the

                                       69
<PAGE>

provision of this SECTION 13.8, (iii) as required by law, regulation, rule,
request or order, subpoena, judicial order or similar order and in connection
with any litigation and (iv) as may be required in connection with the
examination, audit or similar investigation of such Person. Confidential
information shall include all financial projections delivered by any Credit
Party pursuant to this DIP Credit Agreement and such other information
identified as confidential at the time provided to Agent and shall not include
information that either: (a) is in the public domain, or becomes part of the
public domain after disclosure to such Person through no fault of such Person,
or (b) is disclosed to such Person by a third party, provided Agent does not
have actual knowledge that such third party is prohibited from disclosing such
information.

            SECTION 13.9 GOVERNING LAW; SUBMISSION TO JURISDICTION.

            THIS DIP CREDIT AGREEMENT, EACH NOTE AND EACH OTHER DIP LOAN
DOCUMENT TO THE EXTENT APPLICABLE, AND SUBJECT TO THE BANKRUPTCY CODE, SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF OHIO, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. EACH PARTY
HERETO, IN EACH CASE FOR ITSELF, ITS SUCCESSORS AND ASSIGNS, HEREBY (A)
IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE BANKRUPTCY COURT AND AGREES AND
CONSENTS THAT SERVICE OF PROCESS MAY BE MADE UPON IT IN ANY LEGAL PROCEEDING
ARISING OUT OF OR IN CONNECTION WITH THE DIP LOAN DOCUMENTS AND THE OBLIGATIONS
BY SERVICE OF PROCESS AS PROVIDED BY OHIO LAW, (B) IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY LITIGATION ARISING OUT OF OR IN CONNECTION
WITH THE DIP LOAN DOCUMENTS AND THE OBLIGATIONS BROUGHT IN SUCH COURT, (C)
IRREVOCABLY WAIVES ANY CLAIMS THAT ANY LITIGATION BROUGHT IN SUCH COURT HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM, (D) IRREVOCABLY CONSENTS TO THE SERVICE OF
PROCESS OUT OF THE COURT IN ANY SUCH LITIGATION BY THE MAILING OF COPIES THEREOF
BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, POSTAGE PREPAID, AT ITS ADDRESS SET
FORTH HEREIN, AND (E) IRREVOCABLY AGREES THAT ANY LEGAL PROCEEDING AGAINST ANY
PARTY HERETO ARISING OUT OF OR IN CONNECTION WITH THE DIP LOAN DOCUMENTS OR THE
OBLIGATIONS SHALL BE BROUGHT IN THE BANKRUPTCY COURT. IF (I) THE BANKRUPTCY
CASES ARE DISMISSED OR (II) THE BANKRUPTCY COURT ABSTAINS FROM HEARING, OR
REFUSES TO EXERCISE JURISDICTION OVER, ANY ACTIONS OR PROCEEDINGS ARISING IN
CONNECTION WITH THIS DIP CREDIT AGREEMENT OR ANY OTHER DIP LOAN DOCUMENTS OR IN
ANY WAY CONNECTED WITH, OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO IN RESPECT OF THIS DIP CREDIT AGREEMENT OR ANY OTHER DIP LOAN DOCUMENTS
OR THE TRANSACTIONS RELATED HERETO OR THERETO, THEN EACH CREDIT PARTY HEREBY
CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED
WITHIN THE COUNTY OF MONTGOMERY, STATE OF OHIO AND IRREVOCABLY AGREES THAT,
SUBJECT TO AGENT'S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR
RELATING TO THIS DIP

                                       70
<PAGE>

CREDIT AGREEMENT OR THE OTHER DIP LOAN DOCUMENTS SHALL BE LITIGATED IN SUCH
COURTS. EACH CREDIT PARTY EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF
THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. EACH CREDIT
PARTY HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL
SUCH SERVICE OF PROCESS MAY BE MADE UPON SUCH CREDIT PARTY BY CERTIFIED OR
REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO SUCH CREDIT PARTY AT THE
ADDRESS SET FORTH IN THIS DIP CREDIT AGREEMENT AND SERVICE SO MADE SHALL BE
COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.

            SECTION 13.10 WAIVER OF JURY TRIAL.

            (a) EACH CREDIT PARTY, AGENT AND THE DIP LENDERS HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THE DIP LOAN DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED THEREBY AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE
TRIED BEFORE A COURT AND NOT BEFORE A JURY.

            SECTION 13.11 COUNTERPARTS; INTEGRATION.

            This DIP Credit Agreement and the other DIP Loan Documents may be
signed in any number of counterparts, each of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same
instrument. THIS DIP CREDIT AGREEMENT AND THE OTHER DIP LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE
NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

            SECTION 13.12 USA PATRIOT ACT NOTICE.

            Each DIP Lender that is subject to the Act (as hereinafter defined)
and the Agent (for itself and not on behalf of any DIP Lender) hereby notifies
each of the Credit Parties that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
"ACT"), each DIP Lender and the Agent is required to obtain, verify and record
information that identifies each Credit Party, which information includes the
name and address of each Credit Party and other information that will allow such
DIP Lender or the Agent, as applicable, to identify each Credit Party in
accordance with the Act.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                          [SIGNATURE PAGES TO FOLLOW]

                                       71
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the date first above written.

                              BORROWER:

                              AMCAST INDUSTRIAL CORPORATION

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President, Finance and Chief Financial
                                     Officer

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              GUARANTORS:

                              AMCAST INVESTMENT SERVICES CORPORATION

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              AS INTERNATIONAL, INC.

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              AMCAST PLUMBING, INC. F/K/A ELKHART PRODUCTS
                              CORPORATION

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              AMCAST AUTOMOTIVE OF INDIANA, INC.

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              LBC GROUP CORP.

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              LEE BRASS COMPANY

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              AMCAST INDUSTRIAL FINANCIAL SERVICES, INC.

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              CASTING TECHNOLOGY COMPANY

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              IZUMI, INC.

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              SPEEDLINE NORTH AMERICA, INC.

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              AMCAST CASTING TECHNOLOGIES, INC.

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              AMCAST AUTOMOTIVE, INC.

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              AMCAST AVIATION CORPORATION

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              AMCAST PRECISION PRODUCTS, INC.

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              FLAGG BRASS INDUSTRIAL, L.L.C.

                              By: /s/ Richard A. Smith
                                  ----------------------------------------------
                              Name: Richard A. Smith
                              Title: Vice President

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              HERITAGE BANK, SSB, as Agent

                              By: /s/ David Deadman
                                  ----------------------------------------------
                              Name: David Deadman
                              Title: CEO

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              DIP LENDERS:

                              HERITAGE BANK, SSB

                              By: /s/ David Deadman
                                  ----------------------------------------------
                              Name: David Deadman
                              Title: CEO

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              CITIGROUP FINANCIAL PRODUCTS, INC.

                              By: /s/ Paul C. Zingarini
                                  ----------------------------------------------
                              Name: Paul C. Zingarini
                              Title: Director

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                              STEEL PARTNERS II, L.P.

                              By: /s/ Jack L. Howard
                                  ----------------------------------------------
                              Name: Jack L. Howard
                              Title: Partner

                        [THIS IS A SIGNATURE PAGE TO THE
                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT]
<PAGE>

                                                                         ANNEX A

                                  COMMITMENTS
                           AND APPLICABLE PERCENTAGES

<TABLE>
<CAPTION>
                                           COMMITMENT          COMMITMENT
DIP LENDER                                   AMOUNT            PERCENTAGE
----------                                   ------            ----------
<S>                                      <C>                 <C>
Heritage Bank, SSB                       $ 11,585,021.00      77.233473333%

Citigroup Financial Products, Inc.       $  2,714,554.00      18.097026667%

Steel Partners II, L.P.                  $    700,425.00       4.669500000%
                                         ---------------     -------------

Total                                    $ 15,000,000.00     100.000000000%

</TABLE>

                                ANNEX A - Page 1

<PAGE>

                                                                         ANNEX B

                               CLOSING CHECKLIST

                     DEBTOR-IN-POSSESSION CREDIT AGREEMENT
                                     AMONG
                  AMCAST INDUSTRIAL CORPORATION, AS BORROWER;
                       THE GUARANTORS PARTY THERETO; AND
                         THE DIP LENDERS PARTY THERETO

                                      AND

                          HERITAGE BANK, SSB, AS AGENT

                        CLOSING DATE: DECEMBER __, 2004

Heritage Bank, SSB ("HERITAGE")
Highland Capital Management, L.P. ("HIGHLAND")
Amcast Industrial Corporation ("BORROWER")
Amcast Automotive of Indiana, Inc., Speedline North America,
Inc., Amcast Casting Technologies, Inc., Izumi, Inc., Casting
Technology Company, Amcast Automotive, Inc., Amcast Plumbing,
Inc. LBC Group Corp., Lee Brass Company, Amcast Industrial
Financial Services, Inc., Amcast Investment Services
Corporation, Amcast Aviation Corporation, Amcast Precision
Products, Inc., Flagg Brass Industrial, L.L.C., and AS
International, Inc.
("GUARANTORS")
Thompson Hine ("TH") (Counsel to Borrower and Guarantors)
Haynes and Boone, LLP ("HB") (Counsel to Heritage and Highland)
DIP Lenders ("LENDERS")

<TABLE>
<CAPTION>
                                                                   RESPONSIBLE
                           ITEM                                       PARTY            STATUS       COMMENTS
                           ----                                       -----            ------       --------
<S>                                                                <C>                 <C>          <C>
 I. LOAN DOCUMENTS

    A. Debtor-in-Possession Credit Agreement, together
       with:                                                           HB

       1. Annex A - Commitment Annex                                   HB

       2. Annex B - Closing Checklist                                  HB

       3. Annex C - Addresses for Notice                               HB

       4. Annex D - Information Certificate                            HB

       5. Exhibit A - Form of Assignment Agreement                     HB

       6. Exhibit B - Form of Compliance Certificate                   HB

       7. Exhibit C - Form of Borrowing Base Certificate               HB

       8. Exhibit D - Form of Notice of Borrowing                      HB

    B. Notes (if requested by any DIP Lender)                      HB/Borrower

    C. Notice of Borrowing                                           Borrower
</TABLE>

                                ANNEX B - Page 1

<PAGE>

<TABLE>
<CAPTION>
                                                                   RESPONSIBLE
                           ITEM                                       PARTY            STATUS       COMMENTS
                           ----                                       -----            ------       --------
<S>                                                                <C>                 <C>          <C>
    D. Borrowing Base Certificate                                    Borrower

II. RELATED DIP FINANCING DOCUMENTS

    A. Interim Financing Order                                       Borrower

    B. Interim Financing Order Budget                                Borrower

    C. 13-Week Cash Flow Projection                                  Borrower

III. CORPORATE DOCUMENTS

    A. Omnibus Certificate including Incumbency,
       Resolutions authorizing transaction, and
       organizational documents

       1. Amcast Industrial Corporation                            Borrower/TH

       2. Amcast Automotive of Indiana, Inc.                       Borrower/TH

       3. Speedline North America, Inc.                            Borrower/TH

       4. Amcast Casting Technologies, Inc.                        Borrower/TH

       5. Izumi, Inc.                                              Borrower/TH

       6. Casting Technology Company                               Borrower/TH

       7. Amcast Automotive, Inc.                                  Borrower/TH

       8. Amcast Plumbing, Inc.                                    Borrower/TH

       9. LBC Group Corp.                                          Borrower/TH

       10. Lee Brass Company                                       Borrower/TH

       11. Amcast Industrial Financial Services, Inc.              Borrower/TH

       12. Amcast Investment Services Corporation                  Borrower/TH

       13. Amcast Aviation Corporation                             Borrower/TH

       14. Amcast Precision Products, Inc.                         Borrower/TH

       15. Flagg Brass Industrial, L.L.C.                          Borrower/TH

       16. AS International, Inc.                                  Borrower/TH

    B. Officer's Certificate as to required consents
       and approvals                                               Borrower/TH

IV. INSURANCE CERTIFICATE(S)                                         Borrower

V. FEES

    A. Work Fee (to Highland)                                        Borrower

    B. Closing Fee (to Agent for benefit of Lenders)                 Borrower

    C. Administration Fee                                            Borrower
</TABLE>

                                ANNEX B - Page 2

<PAGE>

<TABLE>
<CAPTION>
                                                                   RESPONSIBLE
                           ITEM                                       PARTY            STATUS       COMMENTS
                           ----                                       -----            ------       --------
<S>                                                                <C>                 <C>          <C>
    D. Professional Fees

       1. Haynes and Boone, LLP                                      Borrower

       2. Hahn, Loeser & Parks LLP                                   Borrower

       3. Barrier Advisors, L.P.                                     Borrower
</TABLE>

                                ANNEX B - Page 3

<PAGE>

                                                                         ANNEX C

                             ADDRESSES FOR NOTICES

HERITAGE BANK, SSB
13455 Noel Road, Suite 2220
Dallas, Texas 75240
Attn:  Kristen Mitchell
Facsimile: 972-931-4785
E-mail: kristen.mitchell@bankheritage.com

with a copy to:

HAYNES AND BOONE, LLP
One Houston Center
1221 McKinney, Suite 2100
Houston, TX 77010
Attn.: Tom A. Howley
Facsimile: (713) 236-5407
E-mail: tom.howley@haynesboone.com

CITIGROUP FINANCIAL PRODUCTS, INC.

c/o Citigroup Global Markets Inc.
333 West 34th Street, 9th Floor
New York, New York 10001
Attn.: Vincent J. Farrell
Facsimile: (302) 894-6032
E-mail: vincent.j.farrell@citigroup.com@citigroup.com

STEEL PARTNERS II, L.P.
590 Madison Ave .
New York, New York  10022
Attn.: Jack Howard
Facsimile: (212) 546-9217
E-mail: jlhoward@sonic.net

                                ANNEX C - Page 1

<PAGE>

ADDRESS OF THE CREDIT PARTIES FOR NOTICE PURPOSES:

7887 Washington Village Drive
Dayton, Ohio  45459
Attn:  Jeffrey McWilliams
Facsimile: 937-291-7007
E-mail: jeffrey.mcwilliams@amcast.com

With a copy to:

THOMPSON HINE LLP
3900 Key Center - 127 Public Square
Cleveland, Ohio 44114-1291
Attn:  Alan R. Lepene
Facsimile: (216) 566-5800
E-mail: alan.lepene@thompsonhine.com

                                ANNEX C - Page 2

<PAGE>

                                                                         ANNEX D

                             INFORMATION CERTIFICATE

                                ANNEX D - Page 1

<PAGE>

                                   EXHIBIT A

                          FORM OF ASSIGNMENT AGREEMENT

            This Assignment Agreement (this "ASSIGNMENT AGREEMENT") is entered
into as of ________, 200__, by and between the Assignor named on the signature
page hereto ("ASSIGNOR") and the Assignee named on the signature page hereto
("ASSIGNEE"). Reference is made to the Debtor-In-Possession Credit Agreement
dated as of December 15, 2004 (as amended or otherwise modified from time to
time, the "DIP CREDIT AGREEMENT") among AMCAST INDUSTRIAL CORPORATION, a chapter
11 debtor and debtor-in-possession ("BORROWER"), the Guarantors named therein,
the lenders party thereto from time to time, as DIP Lenders, and Heritage Bank,
SSB, as Agent. Capitalized terms used herein and not otherwise defined shall
have the meanings assigned to them in the DIP Credit Agreement.

            Assignor and Assignee hereby agree as follows:

            1. Assignor hereby sells and assigns to Assignee, and Assignee
hereby purchases and assumes from Assignor the interests set forth on the
schedule attached hereto (the "SCHEDULE"), in and to Assignor's rights and
obligations under the DIP Credit Agreement as of the effective date set forth on
the Schedule (the "EFFECTIVE DATE"). Such purchase and sale is made without
recourse, representation or warranty except as expressly set forth herein. On
the Effective Date, Assignee shall pay to Assignor an amount equal to the
aggregate amount assigned pursuant to the Schedule (exclusive of unfunded
portion of the Commitment) and Assignor shall pay to Assignee a closing fee (if
applicable) in respect of the transactions contemplated hereby in the amount
specified on the Schedule.

            2. Assignor (i) represents that as of the Effective Date, that it is
the legal and beneficial owner of the interests assigned hereunder free and
clear of any adverse claim, (ii) makes no other representation or warranty and
assumes no responsibility with respect to any statement, warranties or
representations made in or in connection with the DIP Credit Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of the DIP Credit Agreement, any other DIP Loan Documents or any other
instrument or document furnished pursuant thereto; and (iii) makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of any other Credit Party or any other Person or the
performance or observance by any Credit Party of its Obligations under the DIP
Credit Agreement or any other DIP Loan Documents or any other instrument or
document furnished pursuant thereto.

            3. Assignee (i) confirms that it has received a copy of the DIP
Credit Agreement and the other DIP Loan Documents, together with copies of the
most recent financial statements delivered pursuant thereto and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment Agreement; (ii) agrees that
it will, independently and without reliance upon Agent, Assignor or any other
DIP 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 the DIP Credit Agreement; (iii) appoints and authorizes
Agent to take such action as agent on its behalf and to exercise such powers
under the DIP Credit Agreement and the other DIP Loan Documents as are delegated
to Agent by the terms thereof, together with such powers as are reasonably

                               EXHIBIT A - Page 1
                          Form of Assignment Agreement
<PAGE>

incidental thereto; (iv) agrees that it will perform in accordance with their
terms all obligations which by the terms of the DIP Credit Agreement are
required to be performed by it as a DIP Lender; (v) represents that on the date
of this Assignment Agreement it is not presently aware of any facts that would
cause it to make a claim under the DIP Credit Agreement; (vi) represents and
warrants that Assignee is not a foreign person (i.e., a person other than a
United States person for United States Federal income tax purposes) or, if it is
a foreign person, that it has delivered to Agent the documentation required to
be delivered to Agent by SECTION 13 below; and (vii) represents and warrants
that it has experience and expertise in the making or the purchasing of loans
such as the Loans, and that it has acquired the interests described herein for
its own account.

            4. Each of Assignor and Assignee represents and warrants to the
other party hereto that it has full power and authority to enter into this
Assignment Agreement and to perform its obligations hereunder in accordance with
the provisions hereof, that this Assignment Agreement has been duly authorized,
executed and delivered by such party and that this Assignment Agreement
constitutes a legal, valid and binding obligation of such party, enforceable
against such party in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting creditors' rights generally and by general
principles of equity.

            5. Upon the effectiveness of this Assignment Agreement pursuant to
SECTION 13 below, (i) Agent shall register Assignee as a DIP Lender, pursuant to
the terms of the DIP Credit Agreement, (ii) Assignee shall be a party to the DIP
Credit Agreement and, to the extent provided in this Assignment Agreement, have
the rights and obligations of a DIP Lender thereunder, (iii) Assignor shall, to
the extent provided in this Assignment Agreement, relinquish its rights and be
released from its obligations under the DIP Credit Agreement and (iv) Agent
shall thereafter make all payments in respect of the interest assigned hereby
(including payments of principal, interest, fees and other amounts) to Assignee.
Assignor and Assignee shall make all appropriate adjustments in payments for
periods prior to the Effective Date by Agent or with respect to the making of
this assignment directly between themselves.

            6. Each of Assignor and Assignee hereby agrees from time to time,
upon request of the other such party hereto, to take such additional actions and
to execute and deliver such additional documents and instruments as such other
party may reasonably request to effect the transactions contemplated by, and to
carry out the intent of, this Assignment Agreement.

            7. Neither this Assignment Agreement nor any term hereof may be
changed, waived, discharged or terminated, except by an instrument in writing
signed by the party (including, if applicable, any party required to evidence
its consent to or acceptance of this Assignment Agreement) against whom
enforcement of such change, waiver, discharge or termination is sought.

            8. For the purposes hereof and for purposes of the DIP Credit
Agreement, the notice address of Assignee shall be as set forth on the Schedule.
Any notice or other communication herein required or permitted to be given shall
be in writing and delivered in accordance with the notice provisions of the DIP
Credit Agreement.

                               EXHIBIT A - Page 2
                          Form of Assignment Agreement
<PAGE>

            9. In case any provision in or obligation under this Assignment
Agreement 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.

            10. THIS ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF OHIO,
WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

            11. This Assignment Agreement shall be binding upon, and shall inure
to the benefit of, the parties hereto and their respective successors and
assigns.

            12. This Assignment Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures hereto were upon the same agreement.

            13. This Assignment Agreement shall become effective as of the
Effective Date upon the satisfaction of each of the following conditions: (i)
the execution of a counterpart hereof by each of Assignor and Assignee, (ii) the
execution of a counterpart hereof by Agent as evidence of its consent hereto to
the extent required pursuant to SECTION 13.6(a) of the DIP Credit Agreement,
(iii) the receipt by Agent of the processing fee referred to in SECTION 13.6(a)
of the DIP Credit Agreement, (iv) in the event Assignee is a foreign person
(i.e., a person other than a United States person for United States Federal
income tax purposes), the receipt by Agent of Internal Revenue Service Form
W-8BEN or Form W-8ECI or such other forms, certificates or other evidence with
respect to United States Federal income tax withholding matters that are
required under the Internal Revenue Code to establish that Assignee shall be
entitled to receive payments of principal, interest and fees under the DIP
Credit Agreement free from or at a reduced rate of withholding of United States
Federal income tax properly completed and executed by Assignee, and (v) the
receipt by Agent of originals or telecopies of the counterparts described above.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                           [SIGNATURE PAGE TO FOLLOW]

                               EXHIBIT A - Page 3
                          Form of Assignment Agreement
<PAGE>

  The parties hereto have caused this Assignment Agreement to be executed and
                 delivered as of the date first written above.

                                         ASSIGNOR:

                                         ________________________

                                         By:____________________________________
                                         Title:_________________________________

                                         ASSIGNEE:

                                         ________________________

                                         By:____________________________________
                                         Title:_________________________________

                                         [Consented to:

                                         Heritage Bank, SSB, as Agent

                                         By:____________________________________
                                         Title:________________________________]

                               EXHIBIT A - Page 4
                          Form of Assignment Agreement
<PAGE>

                        Schedule to Assignment Agreement

Assignor:       ____________________

Assignee:       ____________________

Effective Date: ____________________

               Debtor-In-Possession Credit Agreement dated as of December 15,
               2004 among AMCAST INDUSTRIAL CORPORATION, a chapter 11 debtor and
               debtor-in-possession, as Borrower, the Guarantors named therein,
               the lenders party thereto from time to time, as DIP Lenders, and
               Heritage Bank, SSB, as Agent.

Interests Assigned:

<TABLE>
<CAPTION>
                      Commitment
                      ----------
<S>                  <C>
Assignor Amounts     $__________

Amounts Assigned     $__________

Assignor Amounts
(post-assignment)    $__________
</TABLE>

Closing Fee:       $__________

Assignee Information:

 Address for Notices:                    Address for Payments:
 ___________________________
 ___________________________             Bank:      _____________________
 Attention:  _______________             ABA #:     _____________________
 Telephone:  _______________             Account #: _____________________
 Facsimile:  _______________             Reference: _____________________

                               EXHIBIT A - Page 5
                          Form of Assignment Agreement
<PAGE>

                                   EXHIBIT B

                         FORM OF COMPLIANCE CERTIFICATE

                         AMCAST INDUSTRIAL CORPORATION

                            DATE: __________, _____

            This certificate is given by _____________________, a Financial
Officer of AMCAST INDUSTRIAL CORPORATION, a chapter 11 debtor and
debtor-in-possession ("BORROWER"), on behalf of each Credit Party, pursuant to
SECTION 4.1(c) of that certain Debtor-In-Possession Credit Agreement dated as of
December 15, 2004 among Borrower, the Guarantors, the DIP Lenders from time to
time party thereto and Heritage Bank, SSB, as Agent for the DIP Lenders (as such
agreement may have been amended, restated, supplemented or otherwise modified
from time to time, the "DIP CREDIT AGREEMENT"). Capitalized terms used herein
without definition shall have the meanings set forth in the DIP Credit
Agreement.

            The undersigned Financial Officer hereby certifies to Agent and the
DIP Lenders that:

            (a) the financial statements delivered with this certificate in
accordance with SECTION 4.1(a) and/or 4.1(b) of the DIP Credit Agreement fairly
present in all material respects the results of operations and financial
condition of the Credit Parties as of the dates of such financial statements;

            (b) I have reviewed the terms of the DIP Credit Agreement and have
made, or caused to be made under my supervision, a review in reasonable detail
of the transactions and conditions of the Credit Parties during the accounting
period covered by such financial statements;

            (c) such review has not disclosed the existence during or at the end
of such accounting period, and I have no knowledge of the existence as of the
date hereof, of any condition or event that constitutes a Default or an Event of
Default, except as set forth in SCHEDULE 1 hereto, which includes a description
of the nature and period of existence of such Default or an Event of Default and
what action Borrower has taken, is undertaking and proposes to take with respect
thereto; and

            (d) Borrower is in compliance with the performance covenants
contained in ARTICLE 7 of the DIP Credit Agreement, as demonstrated by the
calculation of such performance covenants below, except as set forth set forth
in SCHEDULE 1 hereto.

                               EXHIBIT B - Page 1
                         Form of Compliance Certificate
<PAGE>

            IN WITNESS WHEREOF, the undersigned officer has executed and
delivered this certificate this ____ day of ___________, ____.

                                         By_____________________________________
                                         Name___________________________________
                                         Title__________________________________

                               EXHIBIT B - Page 2
                         Form of Compliance Certificate
<PAGE>

                                   EXHIBIT C

                       FORM OF BORROWING BASE CERTIFICATE

                         AMCAST INDUSTRIAL CORPORATION

                           DATE: ___________, ______

            This certificate is given by ____________________, a Financial
Officer of AMCAST INDUSTRIAL CORPORATION, chapter 11 debtor and
debtor-in-possession ("BORROWER"), on behalf of each Credit Party, pursuant to
SECTION 4.1(m) of that certain Debtor-In-Possession Credit Agreement dated as of
December 15, 2004 among Borrower, the Guarantors, the DIP Lenders from time to
time party thereto and Heritage Bank, SSB, as Agent for the DIP Lenders (as such
agreement may have been amended, restated, supplemented or otherwise modified
from time to time the "DIP CREDIT AGREEMENT"). Capitalized terms used herein
without definition shall have the meanings set forth in the DIP Credit
Agreement.

            The undersigned Financial Officer hereby certifies to Agent and the
DIP Lenders that:

            (a)   Attached hereto as SCHEDULE 1 is a calculation of the
                  Borrowing Base for Borrower as of the above date;

            (b)   based on such SCHEDULE 1, the Borrowing Base as the above date
                  is:

                       $___________________

            (c)   based on such SCHEDULE 1, Net Borrowing Availability as of the
                  above date is:

                       $___________________

            IN WITNESS WHEREOF, the undersigned officer has executed and
delivered this certificate this ____ day of ___________, ____.

                                         By_____________________________________
                                         Name___________________________________
                                         Title__________________________________

                               EXHIBIT C - Page 1
                       Form of Borrowing Base Certificate
<PAGE>

                                   SCHEDULE 1

                           Borrowing Base Calculation

                                (To be attached)

                               EXHIBIT C - Page 2
                       Form of Borrowing Base Certificate
<PAGE>

                                   EXHIBIT D

                          FORM OF NOTICE OF BORROWING

                           DATE: ___________, ______

            This certificate is given by ____________________, a Responsible
Officer of AMCAST INDUSTRIAL CORPORATION, chapter 11 debtor and
debtor-in-possession ("BORROWER"), on behalf of each Credit Party, pursuant to
SECTION 2.1(b) of that certain Debtor-In-Possession Credit Agreement dated as of
December 15, 2004 among Borrower, the Guarantors, the DIP Lenders from time to
time party thereto and Heritage Bank, SSB, as Agent for the DIP Lenders (as such
agreement may have been amended, restated, supplemented or otherwise modified
from time to time (the "DIP CREDIT AGREEMENT"). Capitalized terms used herein
without definition shall have the meanings set forth in the DIP Credit
Agreement.

            The undersigned Responsible Officer hereby gives notice to Agent of
Borrower's request to borrow $[__________] of Loans on [ DATE ].

            The undersigned officer hereby certifies that, both before and after
giving effect to the request above (i) the proposed Loan and its intended use
are consistent with the terms of the Credit Agreement and the most recently
submitted Budget, and is necessary, after utilization and application of
Borrower's available cash, in order to satisfy Borrower's obligations in the
ordinary course of business; (ii) each of the conditions precedent set forth in
SECTION 8.1 and 8.2 of the DIP Credit Agreement have been satisfied, (iii) all
of the representations and warranties contained in the DIP Credit Agreement and
the other DIP Loan Documents are true, correct and complete in all material
respects as of the date hereof, except to the extent that such representation or
warranty relates to a specific date, in which case such representation and
warranty shall be true and correct as of such earlier date, (iv) no Default or
Event of Default has occurred and is continuing on the date hereof, and (v) the
Borrower is in compliance with the Borrowing Base.

            IN WITNESS WHEREOF, the undersigned officer has executed and
delivered this certificate this ____ day of ___________, ____.

                                         By_____________________________________
                                         Name___________________________________
                                         Title__________________________________

                               EXHIBIT D - Page 1
                          Form of Notice of Borrowing<PAGE>

                                                                     EXHIBIT 4.1

                                                                  CONFORMED COPY

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

                                CREDIT AGREEMENT

                                   dated as of

                                November 14, 2002

                          as amended and restated as of

                                December 15, 2004

                                      among

                       ABERCROMBIE & FITCH MANAGEMENT CO.

                                   as Borrower

                             ABERCROMBIE & FITCH CO.

                                  as Guarantor

                            The Lenders Party Hereto

                                       and

                               NATIONAL CITY BANK

                             as Administrative Agent

                            JPMORGAN CHASE BANK, N.A.

                              as Syndication Agent

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

               NATIONAL CITY BANK and J.P. MORGAN SECURITIES INC.

                   as Co-Lead Arrangers and Joint Bookrunners

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

<PAGE>

                                                                               i

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
<S>                                                                         <C>
                                    ARTICLE I

                                   Definitions

SECTION 1.01.  Defined Terms ..............................................   1
SECTION 1.02.  Classification of Loans and Borrowings .....................  18
SECTION 1.03.  Terms Generally ............................................  18
SECTION 1.04.  Accounting Terms; GAAP .....................................  19

                                   ARTICLE II

                                   The Credits

SECTION 2.01.  Commitments ................................................  19
SECTION 2.02.  Loans and Borrowings .......................................  19
SECTION 2.03.  Requests for Revolving Borrowings ..........................  20
SECTION 2.04.  Swingline Loans ............................................  21
SECTION 2.05.  Letters of Credit ..........................................  22
SECTION 2.06.  Funding of Borrowings ......................................  26
SECTION 2.07.  Interest Elections .........................................  27
SECTION 2.08.  Termination and Reduction of Commitments....................  28
SECTION 2.09.  Repayment of Loans; Evidence of Debt ......................   29
SECTION 2.10.  Prepayment of Loans ........................................  30
SECTION 2.11.  Fees .......................................................  30
SECTION 2.12.  Interest ...................................................  31
SECTION 2.13.  Alternate Rate of Interest .................................  33
SECTION 2.14.  Increased Costs ............................................  33
SECTION 2.15.  Break Funding Payments .....................................  34
SECTION 2.16.  Taxes ......................................................  35
SECTION 2.17.  Payments Generally; Pro Rata Treatment; Sharing of
                 Set-offs .................................................  36
SECTION 2.18.  Mitigation Obligations; Replacement of Lenders..............  38
SECTION 2.19.  Increase in Revolving Credit Commitments....................  39

                                   ARTICLE III

                         Representations and Warranties

SECTION 3.01.  Organization; Powers .......................................  40
SECTION 3.02.  Authorization; Enforceability ..............................  40
SECTION 3.03.  Governmental Approvals; No Conflicts .......................  40
SECTION 3.04.  Financial Condition; No Material Adverse Change......... ...  41
SECTION 3.05.  Properties .................................................  41
SECTION 3.06.  Litigation and Environmental Matters .......................  41
</TABLE>

<PAGE>

                                                                              ii

<TABLE>
<S>                                                                          <C>
SECTION 3.07.  Compliance with Laws and Agreements ........................  42
SECTION 3.08.  Investment and Holding Company Status ......................  42
SECTION 3.09.  Taxes ......................................................  42
SECTION 3.10.  ERISA ......................................................  42
SECTION 3.11.  Disclosure .................................................  42
SECTION 3.12.  Subsidiaries ...............................................  42

                                   ARTICLE IV

                                   Conditions

SECTION 4.01.  Restatement Effective Date .................................  43
SECTION 4.02.  Conditions to Each Credit Event ............................  44

                                    ARTICLE V

                              Affirmative Covenants

SECTION 5.01.  Financial Statements and Other Information.............. ...  44
SECTION 5.02.  Notices of Material Events .................................  46
SECTION 5.03.  Existence; Conduct of Business .............................  46
SECTION 5.04.  Payment of Obligations .....................................  46
SECTION 5.05.  Maintenance of Properties; Insurance .......................  46
SECTION 5.06.  Books and Records; Inspection Rights .......................  47
SECTION 5.07.  Compliance with Laws .......................................  47
SECTION 5.08.  Use of Proceeds and Letters of Credit ......................  47
SECTION 5.09.  Additional Subsidiaries; Guarantee Requirement.......... ...  47

                                   ARTICLE VI

                               Negative Covenants

SECTION 6.01.  Indebtedness ...............................................  47
SECTION 6.02.  Liens ......................................................  49
SECTION 6.03.  Sale-Leaseback Transactions ................................  50
SECTION 6.04.  Fundamental Changes ........................................  50
SECTION 6.05.  Investments, Loans, Advances, Guarantees and Acquisitions ..  51
SECTION 6.06.  Swap Agreements ............................................  52
SECTION 6.07.  Restricted Payments ........................................  52
SECTION 6.08.  Transactions with Affiliates ...............................  53
SECTION 6.09.  Restrictive Agreements .....................................  53
SECTION 6.10.  Leverage Ratio .............................................  53
SECTION 6.11.  Coverage Ratio .............................................  53
SECTION 6.12.  Accounting Changes .........................................  53
</TABLE>

<PAGE>

                                                                             iii

<TABLE>
<S>                                                                          <C>

                                   ARTICLE VII

                                Events of Default

                                  ARTICLE VIII

                            The Administrative Agent

                                   ARTICLE IX

                                  Miscellaneous

SECTION 9.01.  Notices ....................................................  58
SECTION 9.02.  Waivers; Amendments ........................................  59
SECTION 9.03.  Expenses; Indemnity; Damage Waiver .........................  59
SECTION 9.04.  Successors and Assigns .....................................  61
SECTION 9.05.  Survival ...................................................  64
SECTION 9.06.  Counterparts; Integration; Effectiveness................ .... 64
SECTION 9.07.  Severability ...............................................  64
SECTION 9.08.  Right of Setoff ............................................  64
SECTION 9.09.  Governing Law; Submission to Jurisdiction; Venue;
                 Consent to Service of Process.......................... ..  65
SECTION 9.10.  WAIVER OF JURY TRIAL .......................................  65
SECTION 9.11.  Headings ...................................................  66
SECTION 9.12.  Confidentiality ............................................  66
SECTION 9.13.  Interest Rate Limitation ...................................  66
SECTION 9.14.  USA Patriot Act ............................................  67
</TABLE>

SCHEDULES:

Schedule 2.01 -- Commitments
Schedule 2.05 -- Existing Letters of Credit
Schedule 3.06 -- Disclosed Matters
Schedule 3.12 -- Subsidiaries
Schedule 6.01 -- Existing Indebtedness
Schedule 6.02 -- Existing Liens
Schedule 6.09 --Existing Restrictions

EXHIBITS:

Exhibit A - Form of Assignment and Assumption
Exhibit B - Form of Borrowing Request
Exhibit C - Form of Interest Election Request
Exhibit D - Form of Opinion of Vorys, Sater, Seymour and Pease LLP, counsel to
            the Borrower

Exhibit E - Guarantee Agreement

<PAGE>

                           CREDIT AGREEMENT dated as of November 14, 2002, as
                  amended and restated as of December 15, 2004 (this
                  "Agreement"), among ABERCROMBIE & FITCH MANAGEMENT CO., a
                  Delaware corporation, ABERCROMBIE & FITCH CO., a Delaware
                  corporation, the LENDERS party hereto, NATIONAL CITY BANK, as
                  Administrative Agent and JPMORGAN CHASE BANK, N.A., as
                  Syndication Agent.

         The Borrower, the Parent, the Lenders and the Administrative Agent are
parties to the Original Credit Agreement (such term and each other capitalized
term used herein having the meaning assigned to it in Article I of this
Agreement). Such parties desire to amend and restate the Original Credit
Agreement in the form of this Agreement and to restate it in its entirety giving
effect to such amendment, effective as of the Restatement Effective Date and
subject to satisfaction of the conditions set forth herein.

         Accordingly, the parties hereto agree that, effective as of the
Restatement Effective Date, the Original Agreement is hereby amended and
restated in the form hereof, as follows:

                                   ARTICLE I

                                   Definitions

         SECTION 1.01. Defined Terms. As used in this Agreement, the following
terms have the meanings specified below:

         "ABR", when used in reference to any Loan or Borrowing, indicates that
such Loan, or the Loans comprising such Borrowing, are bearing or are to bear
interest at a rate determined by reference to the Alternate Base Rate.

         "Additional Credit Assumption Agreement" means an additional credit
assumption agreement, in form and substance reasonably satisfactory to the
Administrative Agent, among the Borrower, the Administrative Agent and one or
more Additional Credit Lenders.

         "Additional Credit Commitments" means the Commitment of any Lender,
established pursuant to Section 2.19, to make Loans to the Borrower.

         "Additional Credit Lenders" means a Lender with Additional Credit
Commitments.

         "Adjusted Total Debt" means, at any time, the sum of (a) Total Debt
plus (b) 600% of Forward Minimum Rent Commitments.

         "Administrative Agent" means NCB, in its capacity as administrative
agent for the Lenders hereunder.

         "Administrative Questionnaire" means an administrative questionnaire in
a form supplied by the Administrative Agent.

<PAGE>
                                                                               2

         "Affiliate" means, with respect to a specified Person, another Person
that directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.

         "Alternate Base Rate" means, for any day, a rate per annum equal to the
higher of (a) the Prime Rate in effect on such day or (b) the Federal Funds
Effective Rate in effect on such day plus 1/2 of 1%. Any change in the Alternate
Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Prime Rate or the Federal Funds Effective Rate, respectively.

         "Applicable Margin" means, for any day, with respect to any Eurodollar
Revolving Loan or with respect to the Facility Fees payable hereunder or with
respect to the Trade Letter of Credit Fees payable hereunder, as the case may
be, the applicable rate per annum set forth below under the caption "Eurodollar
Revolving Loans Margin" or "Facility Fee Rate" or "Trade Letter of Credit Fee
Rate", as the case may be, based upon the Leverage Ratio for the most recent
determination date:

<TABLE>
<CAPTION>
                          EURODOLLAR                  TRADE LETTER
                       REVOLVING LOANS  FACILITY FEE   OF CREDIT
LEVERAGE RATIO            MARGIN            RATE        FEE RATE
---------------------  ---------------  ------------  ------------
<S>                    <C>              <C>           <C>
        LEVEL I
         <1.00              .525%           .125%       .250%

       LEVEL II
> or = 1.00 and <1.25       .575%           .150%       .275%

       LEVEL III
> or = 1.25 and <1.75       .625%           .175%       .300%

        LEVEL IV
> or = 1.75 and <2.25       .675%           .200%       .325%

        LEVEL V
      > or = 2.25           .875%           .250%       .425%
</TABLE>

For the purposes of the foregoing, (i) the Leverage Ratio shall be determined as
of the end of each fiscal quarter of the Parent's fiscal year based upon the
Parent's consolidated financial statements delivered pursuant to Section 5.01(a)
or (b) and (ii) each change in the Applicable Margin resulting from a change in
the Leverage Ratio shall be effective during the period commencing on and
including the date of delivery to the Administrative Agent of such consolidated
financial statements indicating such change and ending on the date immediately
preceding the effective date of the next such change; provided that the Leverage
Ratio shall be deemed to be in Level V (A) at any time that an Event of Default
has occurred and has been continuing for 15 days and the Administrative Agent,
at the request of the Required Lenders, so notifies the Borrower or (B) subject
to the Administrative Agent's discretion, if the Parent fails to deliver the
consolidated financial statements required to be delivered by it pursuant to
Section 5.01(a) or (b), during the period from the expiration of the time for
delivery thereof until such consolidated financial statements are delivered.

<PAGE>
                                                                               3

         "Applicable Percentage" means, with respect to any Lender, the
percentage of the total Commitments represented by such Lender's Commitment. If
the Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon the Commitments most recently in effect, giving effect to
any assignments.

         "Approved Fund" means any Person (other than a natural person) that is
engaged in making, purchasing, holding or investing in bank loans and similar
extensions of credit in the ordinary course of its business and that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) any
entity or an Affiliate of an entity that administers or manages a Lender.

         "Assignment and Assumption" means an assignment and assumption entered
into by a Lender and an assignee (with the consent of any party whose consent is
required by Section 9.04), and accepted by the Administrative Agent, in the form
of Exhibit A or any other form approved by the Administrative Agent.

         "Attributable Debt" means, on any date, in respect of any lease of the
Parent, the Borrower or any Subsidiary entered into as a part of a sale and
leaseback transaction subject to Section 6.03, (i) if such lease is a Capital
Lease Obligation, the capitalized amount thereof that would appear on a balance
sheet of such Person prepared as of such date in accordance with GAAP, and (ii)
if such lease is not a Capital Lease Obligation, the capitalized amount of the
remaining lease payments under such lease that would appear on a balance sheet
of such Person prepared as of such date in accordance with GAAP if such lease
were accounted for as a Capital Lease Obligation.

         "Availability Period" means the period from and including the
Restatement Effective Date to but excluding the earlier of the Maturity Date and
the date of termination of the Commitments.

         "Board" means the Board of Governors of the Federal Reserve System of
the United States of America.

         "Borrower" means Abercrombie & Fitch Management Co., a Delaware
corporation.

         "Borrowing" means (a) Revolving Loans of the same Type, made, converted
or continued on the same date and, in the case of Eurodollar Loans, as to which
a single Interest Period is in effect or (b) a Swingline Loan.

         "Borrowing Request" means a request by the Borrower for a Revolving
Borrowing in accordance with Section 2.03 and in the form of Exhibit B.

         "Business Day" means any day that is not a Saturday, Sunday or other
day on which commercial banks in Cleveland or New York City are authorized or
required by law to remain closed; provided that, when used in connection with a
Eurodollar Loan, the term "Business Day" shall also exclude any day on which
banks are not open for dealings in dollar deposits in the London interbank
market.

<PAGE>
                                                                               4

         "Capital Lease Obligations" of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination thereof,
which obligations are required to be classified and accounted for as capital
leases on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.

         "Change in Control" means (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the Securities
and Exchange Commission thereunder as in effect on the Restatement Effective
Date) of Equity Interests representing more than 33% of the aggregate ordinary
voting power represented by the issued and outstanding Equity Interests of the
Parent as of the date of such acquisition; (b) the occupation of a majority of
the seats (other than vacant seats) on the board of directors of the Parent by
Persons who were neither (i) nominated by the board of directors of the Parent,
or a committee thereof, nor (ii) appointed by directors so nominated; or (c) the
Borrower ceases, directly or indirectly, to be a wholly-owned Subsidiary of the
Parent.

         "Change in Law" means (a) the adoption of any law, rule or regulation
after the Restatement Effective Date, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the Restatement Effective Date or (c) compliance by any Lender
or the Issuing Bank (or, for purposes of Section 2.14(b), by any lending office
of such Lender or by such Lender's or the Issuing Bank's holding company, if
any) with any request, guideline or directive (whether or not having the force
of law) of any Governmental Authority made or issued after the Restatement
Effective Date.

         "Class", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans
or Swingline Loans.

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time.

         "Commitment" means, with respect to each Lender, the commitment of such
Lender to make Revolving Loans and to acquire participations in Letters of
Credit and Swingline loans hereunder, expressed as an amount representing the
maximum aggregate amount of such Lender's Revolving Credit Exposure hereunder,
as such commitment may be (a) reduced from time to time pursuant to Section
2.08, (b) increased pursuant to Section 2.19 and (c) reduced or increased from
time to time pursuant to assignments by or to such Lender pursuant to Section
9.04. The initial amount of each Lender's Commitment on the Restatement
Effective Date is set forth on Schedule 2.01, or in the Additional Credit
Assumption Agreement or Assignment and Assumption pursuant to which such Lender
shall have assumed its Commitment, as applicable. The initial aggregate amount
of the Lenders' Commitments on the Restatement Effective Date is $250,000,000.

<PAGE>
                                                                               5

         "Consolidated EBITDAR" means, for any period, Consolidated Net Income
for such period plus, without duplication and to the extent deducted in
determining such Consolidated Net Income, the sum of Interest Expense, income
tax expense, depreciation expense, amortization expense, Minimum Rent and
Non-Cash Compensation Charges and minus Interest Income, all as determined in
accordance with GAAP on a consolidated basis for the Parent and the
Subsidiaries.

         "Consolidated Net Income" means, for any period, the consolidated net
income (or loss) of the Parent and the Subsidiaries for such period (excluding
extraordinary gains and losses), as determined in accordance with GAAP on a
consolidated basis. For purposes of calculating Consolidated Net Income for any
fiscal period during and including the fiscal year ending January 29, 2005, all
amounts expensed in connection with the consent decree settling the three
related class action diversity lawsuits reported publicly by the Parent on
November 9, 2004 shall be added back to Consolidated Net Income for all purposes
under this Agreement.

         "Control" means the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of a Person, whether
through the ability to exercise voting power, by contract or otherwise.
"Controlling" and "Controlled" have meanings correlative thereto.

         "Coverage Ratio" means, for the Parent and the Subsidiaries on a
consolidated basis at any date, the ratio of (a) Consolidated EBITDAR for the
period of four consecutive fiscal quarters then ended to (b) the sum of (x) Net
Interest Expense for such period and (y) Minimum Rent for such period.

         "Default" means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.

         "Designated Unimproved Lots" means any parcel of real property located
in Franklin County, Ohio or Licking County, Ohio that has not been developed
with improvements used or useful in the Borrower's business operations.

         "Disclosed Matters" means the actions, suits and proceedings and the
environmental matters disclosed in Schedule 3.06.

         "dollars" or "$" refers to lawful money of the United States of
America.

         "Domestic Subsidiary" means any Subsidiary other than a Foreign
Subsidiary.

         "Effective Date" means November 14, 2002, the date on which the
Original Credit Agreement became effective in accordance with its terms.

         "Environmental Laws" means all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, preservation or reclamation of natural
resources, the management, release

<PAGE>
                                                                               6

or threatened release of any Hazardous Material or the effect of the environment
on health or safety.

         "Environmental Liability" means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Borrower or any Subsidiary directly or
indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

         "Equity Interests" means shares of capital stock, partnership
interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity ownership interests in a Person, and any
warrants, options or other rights entitling the holder thereof to purchase or
acquire any such equity interest.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

         "ERISA Affiliate" means any trade or business (whether or not
incorporated) that, together with the Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

         "ERISA Event" means (a) any "reportable event", as defined in Section
4043 of ERISA or the regulations issued thereunder with respect to a Plan (other
than an event for which the 30-day notice period is waived); (b) the existence
with respect to any Plan of an "accumulated funding deficiency" (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the
filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the
receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by
any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

         "Eurodollar", when used in reference to any Loan or Borrowing,
indicates that such Loan, or the Loans comprising such Borrowing, are bearing or
are to bear interest at a rate determined by reference to the LIBO Rate.

<PAGE>
                                                                               7

         "Event of Default" has the meaning assigned to such term in Article
VII.

         "Excluded Taxes" means, with respect to the Administrative Agent, any
Lender, the Issuing Bank or any other recipient of any payment to be made by or
on account of any obligation of the Borrower hereunder, (a) income or franchise
taxes imposed on (or measured by) its net income by the United States of
America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax imposed
by any other jurisdiction in which the Borrower is located and (c) in the case
of a Foreign Lender (other than an assignee pursuant to a request by the
Borrower under Section 2.18(b)), any withholding tax that is imposed on amounts
payable to such Foreign Lender and which tax is in effect at the time such
Foreign Lender becomes a party to this Agreement (or designates a new lending
office) or is attributable to such Foreign Lender's failure to comply with
Section 2.16(e), except to the extent that such Foreign Lender (or its assignor,
if any) was entitled, at the time of designation of a new lending office (or
assignment), to receive additional amounts from the Borrower with respect to
such withholding tax pursuant to Section 2.16(a).

         "Existing Letters of Credit" means each letter of credit issued or
deemed to have been issued under the Original Credit Agreement that is
outstanding on the Restatement Effective Date. The Existing Letters of Credit
are listed on Schedule 2.05 hereto.

         "Facility Fee" has the meaning set forth in Section 2.11(a).

         "Federal Funds Effective Rate" means, for any day, the weighted average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding 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 (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

         "Financial Officer" means the chief operating officer, chief financial
officer, principal accounting officer, vice president-finance, treasurer or
controller of the Borrower.

         "Foreign Lender" means any Lender or successor Issuing Bank that is
organized under the laws of a jurisdiction other than that in which the Borrower
is located. For purposes of this definition, the United States of America, each
State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction.

         "Foreign Subsidiary" means any Subsidiary that is organized under the
laws of a jurisdiction other than the United States of America, any State
thereof or the District of Columbia.

<PAGE>
                                                                               8

         "Forward Minimum Rent Commitments" means minimum rent commitments (less
related sublease income) under noncancelable leases, including under any such
leases of any Person other than the Parent, the Borrower or a Subsidiary to the
extent, directly or indirectly guaranteed, endorsed or assumed by the Parent,
the Borrower or any Subsidiary or in respect of which the Parent, the Borrower
or any Subsidiary is primarily liable (or contingently or otherwise liable to
the extent required to be reported in accordance with GAAP as a forward rental
expense in the footnotes to the Parent's consolidated financial statements), for
the fiscal year following the Parent's most recently ended fiscal year, as
reported or to be reported in the Parent's annual report filed on Form 10-K with
the Securities and Exchange Commission for the Parent's most recently ended
fiscal year.

         "GAAP" means generally accepted accounting principles in the United
States of America.

         "Governmental Authority" means the government of the United States of
America, any other nation or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

         "Guarantee" of or by any Person (the "guarantor") means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic
effect of guaranteeing any Indebtedness or other obligation of any other Person
(the "primary obligor") in any manner, whether directly or indirectly, and
including any obligation of the guarantor, direct or indirect, (a) to purchase
or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or
lease property, securities or services for the purpose of assuring the owner of
such Indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or
obligation; provided, that the term Guarantee shall not include endorsements for
collection or deposit in the ordinary course of business.

         "Guarantee Agreement" means the Guarantee Agreement among the
Guarantors and the Administrative Agent acting on behalf of the Lenders, as
amended and restated as of the Restatement Effective Date, in substantially the
form of Exhibit E hereto, as the same may be amended, modified or supplemented
from time to time in accordance with the provisions hereof.

         "Guarantors" means the Parent and the Domestic Subsidiaries that become
party to the Guarantee Agreement pursuant to Sections 4.01(f) and 5.09 or
otherwise.

         "Hazardous Materials" means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, friable asbestos or materials
containing friable

<PAGE>
                                                                               9

asbestos, polychlorinated biphenyls, radon gas, infectious or medical wastes and
all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

         "Indebtedness" of any Person means, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person under conditional sale or other title retention
agreements relating to property acquired by such Person, (d) all obligations of
such Person in respect of the deferred purchase price of property or services
(excluding current accounts payable incurred in the ordinary course of
business), (e) all Indebtedness of others secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any Lien on property owned or acquired by such Person, whether or not the
Indebtedness secured thereby has been assumed, (f) all Guarantees by such Person
of Indebtedness of others, (g) all Capital Lease Obligations of such Person, (h)
all obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty and (i) all obligations,
contingent or otherwise, of such Person in respect of bankers' acceptances. The
Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person's ownership
interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness provide that such Person is not liable therefor.

         "Indemnified Taxes" means Taxes other than Excluded Taxes.

         "Interest Expense" means, for any period, the gross interest expense of
the Parent and the Subsidiaries for such period determined on a consolidated
basis in accordance with GAAP.

         "Interest Election Request" means a request by the Borrower to convert
or continue a Revolving Borrowing in accordance with Section 2.07 and in the
form of Exhibit C.

         "Interest Income" means, for any period, interest income of the Parent
and the Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP.

         "Interest Payment Date" means (a) with respect to any ABR Loan (other
than a Swingline Loan), the last Business Day of each January, April, July and
October, (b) with respect to any Eurodollar Loan, the last Business Day of the
Interest Period applicable to the Borrowing of which such Loan is a part and, in
the case of a Eurodollar Borrowing with an Interest Period of more than three
months' duration, each day prior to the last day of such Interest Period that
occurs at intervals of three months' duration after the first day of such
Interest Period and (c) with respect to any Swingline Loan, the day that such
Loan is required to be repaid.

         "Interest Period" means (a) with respect to any Eurodollar Borrowing,
the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is 1, 2, 3 or 6 months
thereafter as the

<PAGE>
                                                                              10

Borrower may elect; provided, that (i) if any Interest Period would end on a day
other than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless, in the case of a Eurodollar Borrowing only, such
next succeeding Business Day would fall in the next calendar month, in which
case such Interest Period shall end on the next preceding Business Day and (ii)
any Interest Period pertaining to a Eurodollar Borrowing that commences on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such
Interest Period. For purposes hereof, the date of a Borrowing initially shall be
the date on which such Borrowing is made and, in the case of a Revolving
Borrowing, thereafter shall be the effective date of the most recent conversion
or continuation of such Borrowing.

         "Issuing Bank" means (a) The Huntington National Bank and any Lender
selected by the Borrower to issue Letters of Credit hereunder as provided in
Section 2.05(i), in such capacity and (b) solely in respect of each Existing
Letter of Credit, the issuer thereof. An Issuing Bank may, in its discretion,
arrange for one or more Letters of Credit to be issued by Affiliates of the
Issuing Bank, in which case the term "Issuing Bank" shall include any such
Affiliate with respect to Letters of Credit issued by such Affiliate.

         "LC Disbursement" means a payment made by the Issuing Bank pursuant to
a Letter of Credit.

         "LC Exposure" means, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding Letters of Credit at such time plus (b) the aggregate
amount of all LC Disbursements that have not yet been reimbursed by or on behalf
of the Borrower at such time. The LC Exposure of any Lender at any time shall be
its Applicable Percentage of the total LC Exposure at such time.

         "Lenders" means the Persons listed on Schedule 2.01 and any other
Person that shall have become a party hereto pursuant to an Additional Credit
Assumption Agreement or an Assignment and Assumption, other than any such Person
that ceases to be a party hereto pursuant to an Assignment and Assumption.
Unless the context otherwise requires, the term "Lenders" includes the Swingline
Lender.

         "Letters of Credit" means each letter of credit issued pursuant to this
Agreement, including the Trade Letters of Credit, Standby Letters of Credit, and
Existing Letters of Credit.

         "Leverage Ratio" means, for the Parent and the Subsidiaries on a
consolidated basis at any date, the ratio of (a) Adjusted Total Debt at the end
of the most recently ended fiscal quarter to (b) Consolidated EBITDAR for the
period of four consecutive fiscal quarters then ended.

         "LIBO Rate" means, with respect to any Eurodollar Borrowing for any
Interest Period, the rate appearing on Telerate screen page 3750 (or on any
successor or substitute page of such service, or any successor to or substitute
for such service,

<PAGE>
                                                                              11

providing rate quotations comparable to those currently provided on such page of
such service, as determined by the Administrative Agent from time to time for
purposes of providing quotations of interest rates applicable to dollar deposits
in the London interbank market) at approximately 11:00 a.m., London time, two
Business Days prior to the commencement of such Interest Period, as the rate for
dollar deposits with a maturity comparable to such Interest Period. In the event
that such rate is not available at such time for any reason, then the "LIBO
Rate" with respect to such Eurodollar Borrowing for such Interest Period shall
be the average (rounded upward to the nearest whole multiple of 1/16 of 1% per
annum) rate at which dollar deposits of $5,000,000 and for a maturity comparable
to such Interest Period are offered by the principal London office of the
Reference Banks in the London interbank market at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest
Period.

         "Lien" means, with respect to any asset, (a) any mortgage, deed of
trust, lien, pledge, hypothecation, encumbrance, charge or security interest in,
on or of such asset, (b) the interest of a vendor or a lessor under any
conditional sale agreement, capital lease or title retention agreement (or any
financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such
securities.

         "Loan Documents" means this Agreement, any promissory notes issued
pursuant to Section 2.09(e) hereunder and the Guarantee Agreement.

         "Loan Parties" means the Borrower and the Guarantors.

         "Loans" means the loans made by the Lenders to the Borrower pursuant to
this Agreement.

         "Material Adverse Effect" means a material adverse effect on (a) the
business, assets, results of operations or financial condition of the Parent and
the Subsidiaries taken as a whole, (b) the ability of the Parent or the Borrower
to perform any of its obligations under this Agreement or (c) the rights of or
benefits available to the Lenders under this Agreement or the Guarantee
Agreement.

         "Material Indebtedness" means Indebtedness (other than the Loans and
Letters of Credit), or obligations in respect of one or more Swap Agreements, of
any one or more of the Parent, the Borrower and the Subsidiaries in an aggregate
principal amount exceeding $10,000,000. For purposes of determining Material
Indebtedness, the "principal amount" of the obligations of the Parent, the
Borrower or any Subsidiary in respect of any Swap Agreement at any time shall be
the maximum aggregate amount (giving effect to any netting agreements) that the
Parent, the Borrower or such Subsidiary would be required to pay if such Swap
Agreement were terminated at such time.

         "Material Subsidiary" means (a) the Borrower, (b) any Subsidiary owning
an Equity Interest in a Material Subsidiary and (c) any other Subsidiary (i) the
consolidated revenues of which for the most recent fiscal year of the Parent for
which audited financial statements have been delivered pursuant to Section 5.01
were greater

<PAGE>
                                                                              12

than 5% of the Parent's consolidated revenues for such fiscal year or (ii) the
consolidated tangible assets of which as of the end of such fiscal year were
greater than 5% of the Parent's consolidated tangible assets as of such date or
(iii) the EBITDAR of which as of the end of such fiscal year was greater than 5%
of Consolidated EBITDAR for such fiscal year.

         "Maturity Date" means December 15, 2009.

         "Minimum Rent" means total rent expense less contingent store rent.

         "Multiemployer Plan" means a multiemployer plan as defined in Section
4001(a)(3) of ERISA.

         "NCB" means National City Bank, a national banking association,
together with its successors and assigns.

         "Net Interest Expense" means the greater of (a) zero and (b) Interest
Expense less Interest Income.

         "Net Proceeds" means, with respect to any Prepayment Event (a) the cash
proceeds received in respect of such event including (i) any cash received in
respect of any non-cash proceeds, but only as and when received, (ii) in the
case of a casualty, insurance proceeds, and (iii) in the case of a condemnation
or similar event, condemnation awards and similar payments, net of (b) the sum
of (i) all reasonable fees and out-of-pocket expenses paid by the Parent, the
Borrower and the Subsidiaries to third parties (other than Affiliates) in
connection with such event, (ii) in the case of a sale, transfer or other
disposition of an asset (including pursuant to a sale and leaseback transaction
or a casualty or a condemnation or similar proceeding), the amount of all
payments required to be made by the Parent, the Borrower and the Subsidiaries as
a result of such event to repay Indebtedness (other than Loans) secured by such
asset or otherwise subject to mandatory prepayment as a result of such event,
and (iii) the amount of all taxes paid (or reasonably estimated to be payable)
by the Parent, the Borrower and the Subsidiaries, and the amount of any reserves
established by the Parent, the Borrower and the Subsidiaries to fund contingent
liabilities reasonably estimated to be payable, in each case during the year
that such event occurred or the next succeeding year and that are directly
attributable to such event (as determined reasonably and in good faith by the
chief financial officer of the Parent or the Borrower).

         "Non-Cash Compensation Charge" means, for any period, non-cash
compensation expenses or other non-cash charges arising from the grant of or
issuance of stock options in connection with employee plans or other equity
compensation arrangements.

         "Original Credit Agreement" means this Agreement as initially executed
and delivered and as subsequently amended, modified and in effect during the
periods prior to the Restatement Effective Date.

         "Other Taxes" means any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies arising
from any

<PAGE>
                                                                              13

payment made hereunder or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement.

         "Parent" means Abercrombie & Fitch Co., a Delaware corporation.

         "Participant" has the meaning set forth in Section 9.04.

         "PBGC" means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA and any successor entity performing similar functions.

         "Permitted Encumbrances" means:

         (a) Liens imposed by law for taxes that are not yet due or are being
   contested in compliance with Section 5.04;

         (b) carriers', warehousemen's, mechanics', materialmen's, repairmen's
   and other like Liens imposed by law, arising in the ordinary course of
   business and securing obligations that are not overdue by more than 30 days
   or are being contested in compliance with Section 5.04;

         (c) pledges and deposits made in the ordinary course of business in
   compliance with workers' compensation, unemployment insurance and other
   social security laws or regulations;

         (d) deposits to secure the performance of bids, trade contracts,
   leases, statutory obligations, surety and appeal bonds, performance bonds and
   other obligations of a like nature, in each case in the ordinary course of
   business;

         (e) easements, zoning restrictions, rights-of-way and similar
   encumbrances on real property imposed by law or arising in the ordinary
   course of business that do not secure any monetary obligations and do not
   materially detract from the value of the affected property or interfere with
   the ordinary conduct of business of the Borrower or any Subsidiary;

         (f) interests of a lessor or lessee arising under a lease; and

         (g) Liens resulting from judgments provided such judgments in the
   aggregate do not constitute an Event of Default under clause (k) of Article
   VII;

provided that the term "Permitted Encumbrances" shall not include any Lien
securing Indebtedness.

         "Permitted Investments" means:

         (a) direct obligations of the United States Treasury;

         (b) debt securities of United States Federal agencies and United States
   government sponsored enterprises which carry the explicit or implied
   guarantee of the United States Government, including the Government National
   Mortgage

<PAGE>
                                                                              14

   Association, the Federal Home Loan Bank, the Federal Farm Credit Bank, the
   Federal National Mortgage Association, and the Student Loan Marketing
   Association;

         (c) certificates of deposit and banker's acceptances of domestic or
   foreign banking institutions with total assets in excess of US$1,000,000,000
   and which are rated S&P and Moody's A-1/P-1 or the equivalent;

         (d) corporate debt instruments (including Rule 144A debt securities)
   which are denominated and payable in U.S. dollars and are rated by S&P and
   Moody's A3/A- or better or, in the case of commercial paper, A2/P2 or better;

         (e) asset-backed securities of auto and credit card receivables issuers
   carrying an S&P rating or A or better;

         (f) auction preferred stock and auction rate certificates rated at
   least AA by S&P (or the equivalent) that have not more than 180 days until
   the next auction at date of purchase;

         (g) short-term tax exempt debt obligations of Governmental Authorities
   consisting of municipal notes, commercial paper, auction rate notes and
   floating rate notes rated A1/P1 by S&P and Moody's, municipal notes rated
   SP1/MIG-1 or better and bonds rated AA or better;

         (h) repurchase agreements with major banks and dealers that are
   recognized as primary dealers by the Federal Reserve Bank of New York and
   which are collateralized by United States Treasury or agencies securities
   valued at 102% of the purchase price; and

         (i) United States money market funds that comply with the requirements
   of Rule 2a-7 under the Investment Company Act of 1940 and are rated as least
   AA/Aa by S&P and Moody's.

         "Person" means any natural person, corporation, limited liability
company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

         "Plan" means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.

         "Prepayment Event" means:

         (a) any sale, transfer or other disposition (including pursuant to a
   sale and leaseback transaction or asset securitization) of any property or
   asset of the Parent, the Borrower or any Domestic Subsidiary, other than (i)
   dispositions made in the ordinary course of business, (ii) dispositions of
   Designated Unimproved

<PAGE>
                                                                              15

   Lots and (iii) dispositions that result in Net Proceeds not exceeding
   $10,000,000 in the aggregate during any fiscal year of the Parent; or

         (b) any casualty or other insured damage to, or any taking under power
   of eminent domain or by condemnation or similar proceeding of, any property
   or asset of the Borrower, the Parent or any Domestic Subsidiary, other than
   any such event resulting in Net Proceeds not exceeding $10,000,000 in the
   aggregate during any fiscal year of the Parent, but only to the extent that
   the Net Proceeds therefrom have not been applied to repair, restore or
   replace such property or asset within 12 months after such event.

         "Prime Rate" means the rate of interest per annum publicly announced
from time to time by NCB as its prime rate in effect at its principal office in
Cleveland, Ohio; each change in the Prime Rate shall be effective from and
including the date such change is publicly announced as being effective.

         "Reinvestment Assets" means real property, equipment or other tangible
assets to be used in the business of the Parent, the Borrower or the
Subsidiaries.

         "Register" has the meaning set forth in Section 9.04.

         "Reinvestment Deferred Amount" means with respect to any Reinvestment
Event, the aggregate Net Proceeds received by the Parent, the Borrower or any
Domestic Subsidiary in connection therewith that, as the result of the delivery
of a Reinvestment Notice, are not applied to reduce the total Commitments
pursuant to Section 2.08(c).

         "Reinvestment Event" means any Prepayment Event in respect of which the
Borrower has delivered a Reinvestment Notice.

         "Reinvestment Notice" means a written notice executed by a Financial
Officer stating that no Event of Default has occurred and is continuing and that
the Parent, the Borrower or a Domestic Subsidiary intends and expects to use all
or a specified portion of the Net Proceeds of a Prepayment Event to acquire
Reinvestment Assets.

         "Reinvestment Prepayment Amount" means with respect to any Reinvestment
Event, the (x) Reinvestment Deferred Amount relating thereto less (y) any amount
thereof expended prior to the relevant Reinvestment Prepayment Date (i) to
acquire Reinvestment Assets or (ii) to pay expenses relating to any proposed
acquisition of Reinvestment Assets.

         "Reinvestment Prepayment Date" shall mean with respect to any
Reinvestment Event, the earlier of (a) the date occurring twelve months after
such Reinvestment Event and (b) the date on which the Parent, the Borrower or
any Domestic Subsidiary shall have notified the Administrative Agent that it has
determined not to, or shall have otherwise ceased to, acquire Reinvestment
Assets with all or any portion of the relevant Reinvestment Deferred Amount.

<PAGE>
                                                                              16

         "Related Parties" means, with respect to any specified Person, such
Person's Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's Affiliates.

         "Reference Banks" means (i) NCB and (ii) any other Lender or Lenders
selected as a Reference Bank by the Administrative Agent and the Required
Lenders; provided that if any of such Reference Banks is no longer a Lender,
such other Lender or Lenders as may be selected by the Administrative Agent
acting on instructions from the Required Lenders.

         "Required Lenders" means, at any time, Lenders having Revolving Credit
Exposures and unused Commitments representing 51% or more of the sum of the
total Revolving Credit Exposures and unused Commitments at such time.

         "Restatement Effective Date" means the date on which the conditions
specified in Section 4.01 are satisfied (or waived in accordance with Section
9.02 of this Agreement).

         "Restricted Payment" means (a) any dividend or other distribution
(whether in cash, securities or other property) with respect to any Equity
Interest of the Parent, the Borrower or any Subsidiary, or (b) any payment
(whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of (i) the purchase, redemption, retirement,
acquisition, cancellation or termination of any Equity Interest of the Parent or
the Borrower or (ii) any option, warrant or other right to acquire any such
Equity Interest of the Parent or the Borrower.

         "Revolving Borrowing" means a Borrowing comprised of Revolving Loans.

         "Revolving Credit Exposure" means, with respect to any Lender at any
time, the sum of the outstanding principal amount of such Lender's Revolving
Loans and its LC Exposure and Swingline Exposure at such time.

         "Revolving Loan" means a Loan made pursuant to Section 2.03.

         "Standby Letter of Credit" means each irrevocable letter of credit
issued by an Issuing Bank pursuant to Section 2.05 relating to obligations
(including performance obligations) of the Borrower, any Subsidiary or any Loan
Party incurred pursuant to contracts to which the Borrower, any Subsidiary or
any Loan Party is or proposes to become a party in the ordinary course of
business.

         "Standby LC Disbursement" means a payment made by the Issuing Bank
pursuant to a Standby Letter of Credit.

         "Standby LC Exposure" means, at any time, the sum of (a) the aggregate
undrawn amount of all outstanding Standby Letters of Credit at such time plus
(b) the aggregate amount of all Standby LC Disbursements that have not yet been
reimbursed by or on behalf of the Borrower at such time. The Standby LC Exposure
of any Lender at

<PAGE>
                                                                              17

any time shall be its Applicable Percentage of the total Standby LC Exposure at
such time.

         "Statutory Reserve Rate" means a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Administrative Agent is subject for
eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in
Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute
eurocurrency funding and to be subject to such reserve requirements without
benefit of or credit for proration, exemptions or offsets that may be available
from time to time to any Lender under such Regulation D or any comparable
regulation. The Statutory Reserve Rate shall be adjusted automatically on and as
of the effective date of any change in any reserve percentage.

         "subsidiary" means, with respect to any Person (the "parent") at any
date, any corporation, limited liability company, partnership, association or
other entity the accounts of which would be consolidated with those of the
parent in the parent's consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well as any
other corporation, limited liability company, partnership, association or other
entity (a) of which securities or other ownership interests representing more
than 50% of the equity or more than 50% of the ordinary voting power or, in the
case of a partnership, more than 50% of the general partnership interests are,
as of such date, owned, controlled or held, or (b) that is, as of such date,
otherwise Controlled, by the parent or one or more subsidiaries of the parent or
by the parent and one or more subsidiaries of the parent.

         "Subsidiary" means any subsidiary of the Parent or the Borrower.

         "Swap Agreement" means any agreement with respect to any swap, forward,
future or derivative transaction or option or similar agreement involving, or
settled by reference to, one or more rates, currencies, commodities, equity or
debt instruments or securities, or economic, financial or pricing indices or
measures of economic, financial or pricing risk or value or any similar
transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services
provided by current or former directors, officers, employees or consultants of
the Parent, the Borrower or the Subsidiaries shall be a Swap Agreement.

         "Swingline Exposure" means, at any time, the aggregate principal amount
of all Swingline Loans outstanding at such time. The Swingline Exposure of any
Lender at any time shall be its Applicable Percentage of the total Swingline
Exposure at such time.

         "Swingline Lender" means NCB, in its capacity as lender of Swingline
Loans hereunder.

<PAGE>
                                                                              18

         "Swingline Loan" means a Loan made pursuant to Section 2.04.

         "Taxes" means any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.

         "Total Debt" means, at any date, the consolidated total Indebtedness of
the Parent and the Subsidiaries as of such date, as determined in accordance
with GAAP (excluding from Indebtedness all obligations, contingent or otherwise,
of the Parent and any Subsidiary as an account party in respect of Trade Letters
of Credit).

         "Trade Letter of Credit" means each commercial documentary letter of
credit issued by an Issuing Bank pursuant to Section 2.05 for the purchase of
goods in the ordinary course of business.

         "Trade Letter of Credit Fee" has the meaning set forth in Section
2.11(b).

         "Transactions" means the execution, delivery and performance by the
Borrower and the Parent of this Agreement and by the Guarantors of the Guarantee
Agreement, the borrowing of Loans, the use of the proceeds thereof and the
issuance of Letters of Credit hereunder.

         "Type", when used in reference to any Loan or Borrowing, refers to
whether the rate of interest on such Loan, or on the Loans comprising such
Borrowing, is determined by reference to the LIBO Rate or the Alternate Base
Rate.

         "Withdrawal Liability" means liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.

         SECTION 1.02. Classification of Loans and Borrowings. For purposes of
this Agreement, Loans may be classified and referred to by Class (e.g., a
"Revolving Loan") or by Type (e.g., a "Eurodollar Loan") or by Class and Type
(e.g., a "Eurodollar Revolving Loan"). Borrowings also may be classified and
referred to by Class (e.g., a "Revolving Borrowing") or by Type (e.g., a
"Eurodollar Borrowing") or by Class and Type (e.g., a "Eurodollar Revolving
Borrowing"). SECTION 1.03. Terms Generally. The definitions of terms herein
shall apply equally to the singular and plural forms of the terms defined.
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 (a) any definition of or
reference to any agreement, instrument or other document herein 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),
(b) any reference herein to any Person shall be construed to include such
Person's successors and assigns, (c) 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, (d) all
references herein to Articles, Sections, Exhibits and

<PAGE>
                                                                              19

Schedules shall be construed to refer to Articles and Sections of, and Exhibits
and Schedules to, this Agreement and (e) 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.

         SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly
provided herein, all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time; provided
that, if the Borrower notifies the Administrative Agent that the Borrower
requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the Restatement Effective Date in GAAP or in the
application thereof on the operation of such provision (or if the Administrative
Agent notifies the Borrower that the Required Lenders request an amendment to
any provision hereof for such purpose), regardless of whether any such notice is
given before or after such change in GAAP or in the application thereof, then
such provision shall be interpreted on the basis of GAAP as in effect and
applied immediately before such change shall have become effective until such
notice shall have been withdrawn or such provision amended in accordance
herewith.

                                   ARTICLE II

                                   The Credits

         SECTION 2.01. Commitments. (a) Subject to the terms and conditions set
forth herein, each Lender agrees to make Revolving Loans to the Borrower from
time to time during the Availability Period in an aggregate principal amount
that will not result in (a) such Lender's Revolving Credit Exposure exceeding
such Lender's Commitment or (b) total Revolving Credit Exposures exceeding the
total Commitments. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrower may borrow, prepay and reborrow
Revolving Loans.

         (b) The lending commitments of Lenders under the Original Credit
Agreement are, as of the Restatement Effective Date, superceded and replaced by
the Commitments set forth on Schedule 2.01.

         SECTION 2.02. Loans and Borrowings. (a) Each Revolving Loan shall be
made as part of a Borrowing consisting of Revolving Loans made by the Lenders
ratably in accordance with their respective Commitments. The failure of any
Lender to make any Loan required to be made by it shall not relieve any other
Lender of its obligations hereunder; provided that the Commitments of the
Lenders are several and no Lender shall be responsible for any other Lender's
failure to make Loans as required.

         (b) Subject to Section 2.13, each Revolving Borrowing shall be
comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request
in accordance herewith. Each Swingline Loan shall be an ABR Loan. Each Lender at
its option may make any Eurodollar Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan; provided that any exercise
of such option shall not affect the obligation of the Borrower to repay such
Loan in accordance with the terms of this Agreement.

<PAGE>
                                                                              20

         (c) At the commencement of each Interest Period for any Eurodollar
Revolving Borrowing, such Borrowing shall be in an aggregate amount that is an
integral multiple of $500,000 and not less than $2,500,000. At the time that
each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate
amount that is an integral multiple of $100,000 and not less than $1,000,000;
provided that (i) a Eurodollar Revolving Borrowing in an aggregate amount not
less than $2,500,000 and (ii) any ABR Revolving Borrowing, may be in an
aggregate amount that is equal to the entire unused balance of the total
Commitments or that is required to finance the reimbursement of an LC
Disbursement as contemplated by Section 2.05(e). Each Swingline Loan shall be in
an amount that is an integral multiple of $250,000 and not less than $1,000,000.
Borrowings of more than one Type and Class may be outstanding at the same time;
provided that there shall not at any time be more than a total of 10 Eurodollar
Revolving Borrowings outstanding.

         (d) Notwithstanding any other provision of this Agreement, the Borrower
shall not be entitled to request, or to elect to convert or continue, any
Borrowing if the Interest Period requested with respect thereto would end after
the Maturity Date.

         SECTION 2.03. Requests for Revolving Borrowings. To request a Revolving
Borrowing, the Borrower shall notify the Administrative Agent of such request by
telephone (a) in the case of a Eurodollar Borrowing, not later than 11:00 a.m.,
Cleveland time, three Business Days before the date of the proposed Borrowing,
or (b) in the case of an ABR Borrowing, not later than 10:30 a.m., Cleveland
time, on the date of the proposed Borrowing. Each such telephonic Borrowing
Request shall be irrevocable and shall be confirmed promptly by hand delivery or
telecopy to the Administrative Agent of a written Borrowing Request in a form
approved by the Administrative Agent and signed by the Borrower. Each such
telephonic and written Borrowing Request shall specify the following information
in compliance with Section 2.02:

         (i) the aggregate amount of the requested Borrowing;

         (ii) the date of such Borrowing, which shall be a Business Day;

         (iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar
   Borrowing;

         (iv) in the case of a Eurodollar Borrowing, the initial Interest Period
   to be applicable thereto, which shall be a period contemplated by the
   definition of the term "Interest Period"; and

         (v) the location and number of the Borrower's account to which funds
   are to be disbursed, which shall comply with the requirements of Section
   2.06.

         If no election as to the Type of Revolving Borrowing is specified, then
the requested Revolving Borrowing shall be an ABR Borrowing. If no Interest
Period is specified with respect to any requested Eurodollar Revolving
Borrowing, then the Borrower shall be deemed to have selected an Interest Period
of one month's duration. Promptly following receipt of a Borrowing Request in
accordance with this Section, the

<PAGE>
                                                                              21

Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender's Loan to be made as part of the requested Borrowing.

         SECTION 2.04. Swingline Loans. (a) Subject to the terms and conditions
set forth herein, the Swingline Lender agrees to make Swingline Loans to the
Borrower from time to time during the Availability Period, in an aggregate
principal amount at any time outstanding that will not result in (i) the
aggregate principal amount of outstanding Swingline Loans exceeding $20,000,000
or (ii) the total Revolving Credit Exposure exceeding the total Commitments;
provided that the Swingline Lender shall not be required to make a Swingline
Loan to refinance an outstanding Swingline Loan. Within the foregoing limits and
subject to the terms and conditions set forth herein, the Borrower may borrow,
prepay and reborrow Swingline Loans.

         (b) To request a Swingline Loan, the Borrower shall notify the
Administrative Agent of such request by telephone (confirmed by telecopy), not
later than 12:00 noon, Cleveland time, on the day of a proposed Swingline Loan.
Each such notice shall be irrevocable and shall specify the requested date
(which shall be a Business Day) and amount of the requested Swingline Loan. The
Administrative Agent will promptly advise the Swingline Lender of any such
notice received from the Borrower. The Swingline Lender shall make each
Swingline Loan available to the Borrower by means of a credit to a deposit
account designated by the Borrower and maintained with a Lender (or, in the case
of a Swingline Loan made to finance the reimbursement of an LC Disbursement as
provided in Section 2.05(e), by remittance to the Issuing Bank) by 2:30 p.m.,
Cleveland time, on the requested date of such Swingline Loan.

         (c) The Swingline Lender may by written notice given to the
Administrative Agent not later than 10:00 a.m., Cleveland time, on any Business
Day require the Lenders to acquire participations on such Business Day in all or
a portion of the Swingline Loans outstanding. Such notice shall specify the
aggregate amount of Swingline Loans in which Lenders will participate. Promptly
upon receipt of such notice, the Administrative Agent will give notice thereof
to each Lender, specifying in such notice such Lender's Applicable Percentage of
such Swingline Loan or Loans. Each Lender hereby absolutely and unconditionally
agrees, upon receipt of notice as provided above, to pay to the Administrative
Agent, for the account of the Swingline Lender, such Lender's Applicable
Percentage of such Swingline Loan or Loans. Each Lender acknowledges and agrees
that its obligation to acquire participations in Swingline Loans pursuant to
this paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default
or reduction or termination of the Commitments, and that each such payment shall
be made without any offset, abatement, withholding or reduction whatsoever. Each
Lender shall comply with its obligation under this paragraph by wire transfer of
immediately available funds, in the same manner as provided in Section 2.06 with
respect to Loans made by such Lender (and Section 2.06 shall apply, mutatis
mutandis, to the payment obligations of the Lenders), and the Administrative
Agent shall promptly pay to the Swingline Lender the amounts so received by it
from the Lenders. The Administrative Agent shall notify the Borrower of any
participations in any Swingline Loan acquired pursuant to this paragraph, and
thereafter payments in respect of such Swingline Loan shall be made to the
Administrative Agent and not to the Swingline Lender. Any amounts received by
the
<PAGE>
                                                                              22

Swingline Lender from the Borrower (or other party on behalf of the Borrower) in
respect of a Swingline Loan after receipt by the Swingline Lender of the
proceeds of a sale of participations therein shall be promptly remitted to the
Administrative Agent; any such amounts received by the Administrative Agent
shall be promptly remitted by the Administrative Agent to the Lenders that shall
have made their payments pursuant to this paragraph and to the Swingline Lender,
as their interests may appear; provided that any such payment so remitted shall
be repaid to the Swingline Lender or to the Administrative Agent, as applicable,
if and to the extent such payment is required to be refunded to the Borrower for
any reason. The purchase of participations in a Swingline Loan pursuant to this
paragraph shall not relieve the Borrower of any default in the payment thereof.

         SECTION 2.05. Letters of Credit. (a) General. Each Existing Letter of
Credit was issued pursuant to the Original Credit Agreement. On the Restatement
Effective Date, the Existing Letters of Credit will automatically, without any
action on the part of any Person, be deemed to be Letters of Credit issued
hereunder for all purposes of this Agreement and the other Loan Documents. In
addition, subject to the terms and conditions set forth herein, the Borrower may
request the issuance of Letters of Credit for itself, any Subsidiary or any Loan
Party, in a form reasonably acceptable to the Administrative Agent and the
Issuing Bank, at any time and from time to time during the Availability Period.
In the event of any inconsistency between the terms and conditions of this
Agreement and the terms and conditions of any form of letter of credit
application or other agreement submitted by the Borrower to, or entered into by
the Borrower with, the Issuing Bank relating to any Letter of Credit, the terms
and conditions of this Agreement shall control.

         (b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit (or the amendment,
renewal or extension of an outstanding Letter of Credit), the Borrower shall
hand deliver or telecopy (or transmit by electronic communication, if
arrangements for doing so have been approved by the Issuing Bank) to the Issuing
Bank (reasonably in advance of the requested date of issuance, amendment,
renewal or extension) a notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or extended, the date of
issuance, amendment, renewal or extension, the date on which such Letter of
Credit is to expire (which shall comply with paragraph (c) of this Section), the
amount of such Letter of Credit, the name and address of the beneficiary thereof
and such other information as shall be necessary to prepare, amend, renew or
extend such Letter of Credit. On every Business Day, all Issuing Banks shall
report to the Administrative Agent (i) all such requests and (ii) the aggregate
amount of the Letters of Credit issued for the current reporting period. If
requested by the Issuing Bank, the Borrower also shall submit a letter of credit
application on the Issuing Bank's standard form in connection with any request
for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or
extended only if (and upon issuance, amendment, renewal or extension of each
Letter of Credit the Borrower shall be deemed to represent and warrant that),
after giving effect to such issuance, amendment, renewal or extension the total
Revolving Credit Exposures shall not exceed the total Commitments.

<PAGE>
                                                                              23

         (c) Expiration Date. Each Letter of Credit shall expire at or prior to
the close of business on the earlier of (i) the date one year after the date of
the issuance of such Letter of Credit (or, in the case of any renewal or
extension thereof, one year after such renewal or extension); provided that a
Trade Letter of Credit may provide that it will be automatically extended,
unless the Issuing Bank shall have notified the beneficiary thereof that such
Trade Letter of Credit will not be so extended not less than a specified period
prior to the scheduled expiration date thereof, and so long as such automatic
extensions do not extend the term of any Trade Letter of Credit beyond the
Maturity Date and (ii) the Maturity Date.

         (d) Participations. By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of the Issuing Bank or the Lenders, the Issuing Bank
hereby grants to each Lender, and each Lender hereby acquires from the Issuing
Bank, a participation in such Letter of Credit equal to such Lender's Applicable
Percentage of the aggregate amount available to be drawn under such Letter of
Credit. Without limiting the foregoing, each Revolving Lender shall be deemed to
have acquired such a participation with respect to each such Existing Letter of
Credit on the Restatement Effective Date and the pre-existing participations in
such Existing Letters of Credit under the Original Credit Agreement shall be
deemed terminated as of the Restatement Effective Date. In consideration and in
furtherance of the foregoing, each Lender hereby absolutely and unconditionally
agrees to pay to the Administrative Agent, for the account of the Issuing Bank,
such Lender's Applicable Percentage of each LC Disbursement made by the Issuing
Bank and not reimbursed by the Borrower on the date due as provided in paragraph
(e) of this Section, or of any reimbursement payment required to be refunded to
the Borrower for any reason. Each Lender acknowledges and agrees that its
obligation to acquire participations pursuant to this paragraph in respect of
Letters of Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any
Letter of Credit or the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever.

         (e) Reimbursement. If the Issuing Bank shall make any LC Disbursement
in respect of a Letter of Credit, and if the Borrower shall have received notice
of such LC Disbursement prior to 10:00 a.m., Cleveland time, on such date, the
Borrower shall reimburse such LC Disbursement by paying to the Issuing Bank an
amount equal to such LC Disbursement by not later than 3:00 p.m., Cleveland
time, on the date that such LC Disbursement is made; if notice of such LC
Disbursement has not been received by the Borrower prior to 10:00 a.m. on such
date, then the Borrower shall reimburse such LC Disbursement not later than
12:00 noon, Cleveland time, on (i) the Business Day that the Borrower receives
such notice, if such notice is received prior to 10:00 a.m., Cleveland time, on
the day of receipt, or (ii) the Business Day immediately following the day that
the Borrower receives such notice, if such notice is not received prior to such
time on the day of receipt; provided that the Borrower may, subject to the
conditions to borrowing set forth herein, request in accordance with Section
2.03 that such payment be financed with an ABR Revolving Borrowing or Swingline
Loan in an equivalent amount and, to the extent so financed, the Borrower's
obligation to make such payment shall be discharged and replaced by the
resulting ABR Revolving Borrowing or Swingline Loan. If the

<PAGE>
                                                                              24

Borrower fails to make such payment when due, the Issuing Bank shall notify the
Administrative Agent and the Administrative Agent shall notify each Lender of
the applicable LC Disbursement, the payment then due from the Borrower in
respect thereof and such Lender's Applicable Percentage thereof. Promptly
following receipt of such notice, each Lender shall pay to the Administrative
Agent its Applicable Percentage of the payment then due from the Borrower, in
the same manner as provided in Section 2.06 with respect to Loans made by such
Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment
obligations of the Lenders), and the Administrative Agent shall promptly pay to
the Issuing Bank the amounts so received by it from the Lenders. Promptly
following receipt by the Administrative Agent of any payment from the Borrower
pursuant to this paragraph, the Administrative Agent shall distribute such
payment to the Lenders that have made payments pursuant to this paragraph to
reimburse the Issuing Bank and the Issuing Bank as their interests may appear.
Any payment made by a Lender pursuant to this paragraph to reimburse the Issuing
Bank for any LC Disbursement (other than the funding of ABR Revolving Loans or a
Swingline Loan as contemplated above) shall not constitute a Loan and shall not
relieve the Borrower of its obligation to reimburse such LC Disbursement.

         (f) Obligations Absolute. The Borrower's obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) payment by the Issuing Bank under a Letter of
Credit against presentation of a draft or other document that does not comply
with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for
the provisions of this Section, constitute a legal or equitable discharge of, or
provide a right of setoff against, the Borrower's obligations hereunder. Neither
the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their
Related Parties, shall have any liability or responsibility by reason of or in
connection with the issuance or transfer of any Letter of Credit or any payment
or failure to make any payment thereunder (irrespective of any of the
circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the
Issuing Bank; provided that the foregoing shall not be construed to excuse the
Issuing Bank from liability to the Borrower to the extent of any direct damages
(as opposed to consequential damages, claims in respect of which are hereby
waived by the Borrower to the extent permitted by applicable law) suffered by
the Borrower that are caused by the Issuing Bank's failure to exercise care when
determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. The parties hereto expressly agree that,
in the absence of gross negligence or wilful misconduct on the part of the
Issuing Bank (as finally determined by a court of competent jurisdiction), the
Issuing Bank shall be deemed to have exercised care in each such determination.
In furtherance of the

<PAGE>
                                                                              25

foregoing and without limiting the generality thereof, the parties agree that,
with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank
may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit.

         (g) Disbursement Procedures. The Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit. The Issuing Bank shall promptly notify the
Administrative Agent and the Borrower by telephone (confirmed by telecopy) of
such demand for payment and whether the Issuing Bank has made or will make an LC
Disbursement thereunder; provided that any failure to give or delay in giving
such notice shall not relieve the Borrower of its obligation to reimburse the
Issuing Bank and the Lenders with respect to any such LC Disbursement.

         (h) Interim Interest. If the Issuing Bank shall make any LC
Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in
full on the date such LC Disbursement is made, the unpaid amount thereof shall
bear interest, for each day from and including the date such LC Disbursement is
made to but excluding the date that the Borrower reimburses such LC
Disbursement, at the rate per annum equal to the lower of (i) the rate then
applicable to ABR Revolving Loans and (ii) the Federal Funds Effective Rate plus
the then Applicable Margin for Eurodollar Revolving Borrowings; provided that,
if the Borrower fails to reimburse such LC Disbursement when due pursuant to
paragraph (e) of this Section, then Section 2.12(d) shall apply. Interest
accrued pursuant to this paragraph shall be for the account of the Issuing Bank,
except that interest accrued on and after the date of payment by any Lender
pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall be
for the account of such Lender to the extent of such payment.

         (i) Addition, Termination or Replacement of an Issuing Bank. An Issuing
Bank may be replaced, added or terminated at any time by written agreement
between the Borrower and the Administrative Agent (whose consent will not be
unreasonably withheld) and the affected Issuing Bank(s). The Administrative
Agent shall notify the Lenders of any such addition, termination or replacement
of the Issuing Bank. At the time any such termination or replacement shall
become effective, the Borrower shall pay all unpaid fees accrued for the account
of the terminated or replaced Issuing Bank pursuant to Section 2.11(b). From and
after the effective date of any such addition or replacement, (i) the new
Issuing Bank shall have all the rights and obligations of an Issuing Bank under
this Agreement with respect to Letters of Credit to be issued thereafter and
(ii) references herein to the term "Issuing Bank" shall be deemed to refer such
new or to any previous Issuing Bank, or to such new and all previous Issuing
Banks, as the context shall require. After the termination or replacement of an
Issuing Bank hereunder, the terminated or replaced Issuing Bank shall remain a
party hereto and shall continue to have all the rights and obligations of an
Issuing Bank under this Agreement with respect to Letters of Credit issued by it
prior to such termination or replacement, but shall not be required to issue
additional Letters of Credit.

<PAGE>
                                                                              26

         (j) Cash Collateralization. If any Event of Default shall occur and be
continuing, on the Business Day that the Borrower receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Lenders with LC Exposure representing greater than 50% of
the total LC Exposure) demanding the deposit of cash collateral pursuant to this
paragraph, the Borrower shall deposit in an account with the Administrative
Agent, in the name of the Administrative Agent and for the benefit of the
Lenders, an amount in cash equal to the LC Exposure as of such date plus any
accrued and unpaid interest thereon; provided that the obligation to deposit
such cash collateral shall become effective immediately, and such deposit shall
become immediately due and payable, without demand or other notice of any kind,
upon the occurrence of any Event of Default with respect to the Borrower
described in clause (h) or (i) of Article VII. Such deposit shall be held by the
Administrative Agent as collateral for the payment and performance of the
obligations of the Borrower under this Agreement. The Administrative Agent shall
have exclusive dominion and control, including the exclusive right of
withdrawal, over such account. Other than any interest earned on the investment
of such deposits, which investments shall be made at the option and sole
discretion of the Administrative Agent and at the Borrower's risk and expense,
such deposits shall not bear interest. Interest or profits, if any, on such
investments shall accumulate in such account. Moneys in such account shall be
applied by the Administrative Agent to reimburse the Issuing Bank for LC
Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrower for the LC Exposure at such time or, if the maturity of the Loans
has been accelerated (but subject to the consent of Lenders with LC Exposure
representing greater than 50% of the total LC Exposure), be applied to satisfy
other obligations of the Borrower under this Agreement. If the Borrower is
required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the Borrower within three Business Days after
all Events of Default have been cured or waived.

         (k) Multiple Issuing Banks Contemplated. As used in this Agreement, the
term, "the Issuing Bank" shall mean the Issuing Bank issuing the applicable
Letter of Credit, but shall not be construed to mean that only one Issuing Bank
may exist at any given time.

         SECTION 2.06. Funding of Borrowings. (a) Each Lender shall make each
Loan to be made by it hereunder on the proposed date thereof by wire transfer of
immediately available funds by 12:00 noon, Cleveland time, to the account of the
Administrative Agent most recently designated by it for such purpose by notice
to the Lenders; provided that Swingline Loans shall be made as provided in
Section 2.04. The Administrative Agent will make such Loans available to the
Borrower by promptly crediting the amounts so received, in like funds, to an
account of the Borrower maintained with a Lender and designated by the Borrower
in the applicable Borrowing Request; provided that ABR Revolving Loans made to
finance the reimbursement of an LC Disbursement as provided in Section 2.05(e)
shall be remitted by the Administrative Agent to the Issuing Bank.

<PAGE>
                                                                              27

         (b) Unless the Administrative Agent shall have received notice from a
Lender prior to the proposed date of any Borrowing that such Lender will not
make available to the Administrative Agent such Lender's share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share
of the applicable Borrowing available to the Administrative Agent, then the
applicable Lender and the Borrower severally agree to pay to the Administrative
Agent forthwith on demand such corresponding amount with interest thereon, for
each day from and including the date such amount is made available to the
Borrower to but excluding the date of payment to the Administrative Agent, at
(i) in the case of such Lender, the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation or (ii) in the case of the Borrower,
the interest rate applicable to ABR Loans. If such Lender pays such amount to
the Administrative Agent, then such amount shall constitute such Lender's Loan
included in such Borrowing.

         SECTION 2.07. Interest Elections. (a) Each Revolving Borrowing
initially shall be of the Type specified in the applicable Borrowing Request
and, in the case of a Eurodollar Revolving Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request. Thereafter, the Borrower
may elect to convert such Borrowing to a different Type or to continue such
Borrowing and, in the case of a Eurodollar Revolving Borrowing, may elect
Interest Periods therefor, all as provided in this Section. The Borrower may
elect different options with respect to different portions of the affected
Borrowing, in which case each such portion shall be allocated ratably among the
Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate Borrowing. This Section shall
not apply to Swingline Borrowings, which may not be converted or continued.

         (b) To make an election pursuant to this Section, the Borrower shall
notify the Administrative Agent of such election by telephone by the time that a
Borrowing Request would be required under Section 2.03 if the Borrower were
requesting a Revolving Borrowing of the Type resulting from such election to be
made on the effective date of such election. Each such telephonic Interest
Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Interest Election
Request in a form approved by the Administrative Agent and signed by the
Borrower.

         (c) Each telephonic and written Interest Election Request shall specify
the following information in compliance with Section 2.02:

         (i) the Borrowing to which such Interest Election Request applies and,
   if different options are being elected with respect to different portions
   thereof, the portions thereof to be allocated to each resulting Borrowing (in
   which case the information to be specified pursuant to clauses (iii) and (iv)
   below shall be specified for each resulting Borrowing);

<PAGE>
                                                                              28

         (ii) the effective date of the election made pursuant to such Interest
   Election Request, which shall be a Business Day;

         (iii) whether the resulting Borrowing is to be an ABR Borrowing or a
   Eurodollar Borrowing; and

         (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest
   Period to be applicable thereto after giving effect to such election, which
   shall be a period contemplated by the definition of the term "Interest
   Period".

If any such Interest Election Request requests a Eurodollar Borrowing but does
not specify an Interest Period, then the Borrower shall be deemed to have
selected an Interest Period of one month's duration.

         (d) Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of such
Lender's portion of each resulting Borrowing.

         (e) If the Borrower fails to deliver a timely Interest Election Request
with respect to a Eurodollar Revolving Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, at the end of such Interest Period such Borrowing shall be
converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if
an Event of Default has occurred and is continuing and the Administrative Agent,
at the request of the Required Lenders, so notifies the Borrower, then, so long
as an Event of Default is continuing (i) no outstanding Revolving Borrowing may
be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid,
each Eurodollar Revolving Borrowing shall be converted to an ABR Borrowing at
the end of the Interest Period applicable thereto.

         SECTION 2.08. Termination and Reduction of Commitments. (a) Unless
previously terminated, the Commitments shall terminate on the Maturity Date.

         (b) The Borrower may at any time terminate, or from time to time
reduce, the Commitments; provided that (i) each reduction of the Commitments
shall be in an amount that is an integral multiple of $1,000,000 and not less
than $5,000,000 and (ii) the Borrower shall not terminate or reduce the
Commitments if, after giving effect to any concurrent prepayment of the Loans in
accordance with Section 2.10, the Revolving Credit Exposures would exceed the
total Commitments.

         (c) In the event and on each occasion that any Net Proceeds are
received by or on behalf of the Parent, the Borrower or any Subsidiary in
respect of any Prepayment Event, then, unless a Reinvestment Notice shall be
delivered in respect thereof, the Borrower shall promptly, and in any event
within five Business Days after such Net Proceeds are received, reduce the total
Commitments by an aggregate amount equal to 100% of such Net Proceeds; provided,
that, on each Reinvestment Prepayment Date, an amount equal to the Reinvestment
Prepayment Amount with respect to the relevant Reinvestment Event shall be
applied to the permanent reduction of the total Commitments by an amount equal
to the Reinvestment Prepayment Amount.
<PAGE>
                                                                              29

         (d) The Borrower shall notify the Administrative Agent of any election
to terminate or reduce the Commitments under paragraph (b) of this Section at
least three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof. Promptly
following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Borrower pursuant
to this Section shall be irrevocable; provided that a notice of termination of
the Commitments delivered by the Borrower may state that such notice is
conditioned upon the effectiveness of other credit facilities or the
consummation of other specified transactions, in which case such notice may be
revoked by the Borrower (by notice to the Administrative Agent on or prior to
the specified effective date) if such condition is not satisfied. Any
termination or reduction of the Commitments shall be permanent. Each reduction
of the Commitments shall be made ratably among the Lenders in accordance with
their respective Commitments.

         SECTION 2.09. Repayment of Loans; Evidence of Debt. (a) The Borrower
hereby unconditionally promises to pay (i) to the Administrative Agent for the
account of each Lender the then unpaid principal amount of each Revolving Loan
on the Maturity Date and (ii) to the Swingline Lender the then unpaid principal
amount of each Swingline Loan on the earlier of the Maturity Date and the 14th
day after such Swingline Loan is made; provided that on each date that a
Revolving Borrowing is made, the Borrower shall repay all Swingline Loans then
outstanding.

         (b) Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Loan made by such Lender, including the amounts of principal
and interest payable and paid to such Lender from time to time hereunder.

         (c) The Administrative Agent shall maintain accounts in which it shall
record (i) the amount of each Loan made hereunder, the Class and Type thereof
and the Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender's share thereof.

         (d) The entries made in the accounts maintained pursuant to paragraph
(b) or (c) of this Section shall be prima facie evidence of the existence and
amounts of the obligations recorded therein; provided that the failure of any
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of the Borrower to repay
the Loans in accordance with the terms of this Agreement.

         (e) Any Lender may request that Loans made by it be evidenced by a
promissory note. In such event, the Borrower shall prepare, execute and deliver
to such Lender a promissory note payable to the order of such Lender (or, if
requested by such Lender, to such Lender and its registered assigns) and in a
form approved by the Administrative Agent. Thereafter, the Loans evidenced by
such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.04) be represented by one or more promissory
notes in such form payable to the order of the

<PAGE>
                                                                              30

payee named therein (or, if such promissory note is a registered note, to such
payee and its registered assigns).

         SECTION 2.10. Prepayment of Loans. (a) The Borrower shall have the
right at any time and from time to time to prepay any Borrowing in whole or in
part, subject to prior notice in accordance with paragraph (c) of this Section.

         (b) In the event and on each occasion that the aggregate Revolving
Credit Exposure exceeds the total aggregate Commitments (including without
limitation as a result of any reduction of Commitments required by Section
2.08(c), the Borrower shall prepay Revolving Borrowings (or, if no such
Borrowings are outstanding, deposit cash collateral in an account with the
Administrative Agent pursuant to Section 2.05(j)) in an aggregate amount equal
to such excess.

         (c) The Borrower shall notify the Administrative Agent (and, in the
case of prepayment of a Swingline Loan, the Swingline Lender) by telephone
(confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar Revolving Borrowing, not later than 11:00 a.m.,
Cleveland time, three Business Days before the date of prepayment, (ii) in the
case of prepayment of an ABR Revolving Borrowing, not later than 11:00 a.m.,
Cleveland time, on the date of prepayment or (iii) in the case of prepayment of
a Swingline Loan, not later than 12:00 noon, Cleveland time, on the date of
prepayment. Each such notice shall be irrevocable and shall specify the
prepayment date and the principal amount of each Borrowing or portion thereof to
be prepaid; provided that, if a notice of prepayment is given in connection with
a conditional notice of termination of the Commitments as contemplated by
Section 2.08, then such notice of prepayment may be revoked if such notice of
termination is revoked in accordance with Section 2.08. Promptly following
receipt of any such notice relating to a Revolving Borrowing, the Administrative
Agent shall advise the Lenders of the contents thereof. Each partial prepayment
of any Revolving Borrowing shall be in an amount that would be permitted in the
case of an advance of a Revolving Borrowing of the same Type as provided in
Section 2.02 in the aggregate principal amount thereof. Each prepayment of a
Revolving Borrowing shall be applied ratably to the Loans included in the
prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the
extent required by Section 2.12.

         SECTION 2.11. Fees. (a) The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a facility fee (the
"Facility Fee"), which shall accrue at the Applicable Margin on the daily amount
of the Commitment of such Lender (whether used or unused) during the period from
and including the Restatement Effective Date to but excluding the date on which
such Commitment terminates; provided that, if such Lender continues to have any
Revolving Credit Exposure after its Commitment terminates, then such facility
fee shall continue to accrue on the daily amount of such Lender's Revolving
Credit Exposure from and including the date on which its Commitment terminates
to but excluding the date on which such Lender ceases to have any Revolving
Credit Exposure. Accrued facility fees shall be payable quarterly in arrears on
the last Business Day of January, April, July and October of each year and on
the date on which the Commitments terminate, commencing on the first such date
to occur after the Restatement Effective Date; provided that any facility fees

<PAGE>
                                                                              31

accruing after the date on which the Commitments terminate shall be payable on
demand. All facility fees shall be computed on the basis of a year of 360 days
and shall be payable for the actual number of days elapsed (including the first
day but excluding the last day).

         (b) The Borrower agrees to pay (i) to the Administrative Agent for the
account of each Lender a participation fee with respect to its participations in
(x) Trade Letters of Credit (the "Trade Letter of Credit Fee"), which shall
accrue at the rate equal to the Applicable Margin and (y) Standby Letters of
Credit, which shall accrue at the Applicable Margin in effect for Eurodollar
Revolving Loans, each on the average daily amount of such Lender's LC Exposure
attributable to Trade Letters of Credit and Standby Letters of Credit, as the
case may be (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the Restatement Effective
Date to but excluding the later of the date on which such Lender's Commitment
terminates and the date on which such Lender ceases to have any LC Exposure, and
(ii) to the Issuing Bank a fronting fee, which shall accrue at the rate or rates
per annum separately agreed upon between the Borrower and the Issuing Bank on
the average daily amount of the LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the period from and
including the Restatement Effective Date to but excluding the later of the date
of termination of the Commitments and the date on which there ceases to be any
LC Exposure, as well as the Issuing Bank's standard fees with respect to the
issuance, amendment, renewal or extension of any Letter of Credit or processing
of drawings thereunder. Participation fees and fronting fees accrued through and
including the last day of January, April, July and October of each year shall be
payable on the last Business Day of January, April, July and October of each
year, commencing on the first such date to occur after the Restatement Effective
Date; provided that all such fees shall be payable on the date on which the
Commitments terminate and any such fees accruing after the date on which the
Commitments terminate shall be payable on demand. Any other fees payable to the
Issuing Bank pursuant to this paragraph shall be payable within 10 days after
demand. All participation fees and fronting fees shall be computed on the basis
of a year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).

         (c) The Borrower agrees to pay to the Administrative Agent, for its own
account, fees payable in the amounts and at the times separately agreed upon
between the Borrower and the Administrative Agent.

         (d) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent (or to the Issuing
Bank, in the case of fees payable to it) for distribution, in the case of
facility fees and participation fees, to the Lenders. Fees paid shall not be
refundable under any circumstances.

         SECTION 2.12. Interest. (a) The Loans comprising each ABR Borrowing
(including each Swingline Loan) shall bear interest at the Alternate Base Rate.

         (b) The Loans comprising each Eurodollar Revolving Loan shall bear
interest at the LIBO Rate for the Interest Period in effect for such Borrowing
plus the Applicable Margin.

<PAGE>
                                                                              32

         (c) For so long as any Lender maintains reserves against "Eurocurrency
liabilities" (or any other category of liabilities which includes deposits by
reference to which the interest rate on Eurodollar Loans is determined or any
category of extensions of credit or other assets which includes loans by a
non-United States office of any Lender to United States residents), and as a
result the cost to such Lender (or its Eurodollar lending office) of making or
maintaining its Eurodollar Loans is increased, then such Lender may require the
Borrower to pay, contemporaneously with each payment of interest on any
Eurodollar Loan of such Lender, additional interest on such Eurodollar Loan for
the Interest Period of such Eurodollar Loan at a rate per annum up to but not
exceeding the excess of (i)(A) the applicable LIBO Rate, as the case may be,
divided by (B) one minus the Statutory Reserve Rate over (ii) the rate specified
in the preceding clause (i)(A). Any Lender wishing to require payment of such
additional interest pursuant to the preceding sentence (x) shall so notify the
Borrower and the Administrative Agent, in which case such additional interest on
the Eurodollar Loans of such Lender shall be payable to such Bank at the place
indicated in such notice with respect to each Interest Period commencing at
least three Business Days after the giving of such notice and (y) shall furnish
to the applicable Borrower at least five Business Days prior to each date on
which interest is payable on such Eurodollar Loans an officer's certificate
setting forth the amount to which such Lender is then entitled under this
subsection (c) (which shall be consistent with such Lender's good faith estimate
of the level at which the related reserves are maintained by it). Each such
certificate shall be accompanied by such information as the Borrower may
reasonably request as to the computation set forth therein.

         (d) Notwithstanding the foregoing, if any principal of or interest on
any Loan or any fee or other amount payable by the Borrower hereunder is not
paid when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the
rate otherwise applicable to such Loan as provided in the preceding paragraphs
of this Section or (ii) in the case of any other amount, 2% plus the rate
applicable to ABR Loans as provided in paragraph (a) of this Section.

         (e) Accrued interest on each Loan shall be payable in arrears on each
Interest Payment Date for such Loan and, in the case of Revolving Loans, upon
termination of the Commitments; provided that (i) interest accrued pursuant to
paragraph (d) of this Section shall be payable on demand, (ii) in the event of
any repayment or prepayment of any Loan (other than a prepayment of an ABR
Revolving Loan prior to the end of the Availability Period), accrued interest on
the principal amount repaid or prepaid shall be payable on the date of such
repayment or prepayment and (iii) in the event of any conversion of any
Eurodollar Revolving Loan prior to the end of the current Interest Period
therefor, accrued interest on such Loan shall be payable on the effective date
of such conversion.

         (f) All interest hereunder shall be computed on the basis of a year of
360 days, except that interest computed by reference to the Alternate Base Rate
at times when the Alternate Base Rate is based on the Prime Rate shall be
computed on the basis of a year of 365 days (or 366 days in a leap year), and in
each case shall be payable for the

<PAGE>
                                                                              33

actual number of days elapsed (including the first day but excluding the last
day). The applicable Alternate Base Rate or LIBO Rate shall be determined by the
Administrative Agent, and such determination shall be conclusive absent manifest
error.

         SECTION 2.13. Alternate Rate of Interest. If prior to the commencement
of any Interest Period for a Eurodollar Borrowing:

               (a) the Administrative Agent determines (which determination
         shall be conclusive absent manifest error) that adequate and reasonable
         means do not exist for ascertaining the LIBO Rate for such Interest
         Period; or

               (b) the Administrative Agent is advised by the Required Lenders
         that the LIBO Rate for such Interest Period will not adequately and
         fairly reflect the cost to such Lenders (or Lender) of making or
         maintaining their Loans (or its Loan) included in such Borrowing for
         such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Revolving Borrowing to, or
continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be
ineffective and (ii) if any Borrowing Request requests a Eurodollar Revolving
Borrowing, such Borrowing shall be made as an ABR Borrowing.

         SECTION 2.14. Increased Costs. (a) If any Change in Law shall:

         (i) impose, modify or deem applicable any reserve, special deposit or
   similar requirement against assets of, deposits with or for the account of,
   or credit extended by, any Lender or the Issuing Bank; or

         (ii) impose on any Lender or the Issuing Bank or the London interbank
   market any other condition affecting this Agreement or Eurodollar Loans made
   by such Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender or the
Issuing Bank of participating in, issuing or maintaining any Letter of Credit or
to reduce the amount of any sum received or receivable by such Lender or the
Issuing Bank hereunder (whether of principal, interest or otherwise), then the
Borrower will pay to such Lender or the Issuing Bank, as the case may be, such
additional amount or amounts as will compensate such Lender or the Issuing Bank,
as the case may be, for such additional costs incurred or reduction suffered.

         (b) If any Lender or the Issuing Bank determines that any Change in Law
regarding capital requirements has or would have the effect of reducing the rate
of return on such Lender's or the Issuing Bank's capital or on the capital of
such Lender's or the

<PAGE>
                                                                              34

Issuing Bank's holding company, if any, as a consequence of this Agreement or
the Loans made by, or participations in Letters of Credit held by, such Lender,
or the Letters of Credit issued by the Issuing Bank, to a level below that which
such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding
company could have achieved but for such Change in Law (taking into
consideration such Lender's or the Issuing Bank's policies and the policies of
such Lender's or the Issuing Bank's holding company with respect to capital
adequacy), then from time to time the Borrower will pay to such Lender or the
Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or the Issuing Bank or such Lender's or the Issuing
Bank's holding company for any such reduction suffered.

         (c) A certificate of a Lender or the Issuing Bank setting forth the
amount or amounts necessary to compensate such Lender or the Issuing Bank or its
holding company, as the case may be, as specified in paragraph (a) or (b) of
this Section shall be delivered promptly to the Borrower and shall be conclusive
absent manifest error. The Borrower shall pay such Lender or the Issuing Bank,
as the case may be, the amount shown as due on any such certificate within 10
days after receipt thereof.

         (d) Failure or delay on the part of any Lender or the Issuing Bank to
demand compensation pursuant to this Section shall not constitute a waiver of
such Lender's or the Issuing Bank's right to demand such compensation; provided
that the Borrower shall not be required to compensate a Lender or the Issuing
Bank pursuant to this Section for any increased costs or reductions incurred
more than 90 days prior to the date that such Lender or the Issuing Bank, as the
case may be, notifies the Borrower of the Change in Law giving rise to such
increased costs or reductions and of such Lender's or the Issuing Bank's
intention to claim compensation therefor; provided further that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then
the 90-day period referred to above shall be extended to include the period of
retroactive effect thereof.

         SECTION 2.15. Break Funding Payments. In the event of (a) the payment
of any principal of any Eurodollar Loan other than on the last day of an
Interest Period applicable thereto (including as a result of an Event of
Default), (b) the conversion of any Eurodollar Loan other than on the last day
of the Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Eurodollar Revolving Loan on the date specified in any
notice delivered pursuant hereto (regardless of whether such notice may be
revoked under Section 2.10(b) and is revoked in accordance therewith) or (d) the
assignment of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Borrower pursuant to
Section 2.18, then, in any such event, the Borrower shall compensate each Lender
for the loss, cost and expense attributable to such event. In the case of a
Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to
include an amount determined by such Lender to be the excess, if any, of (i) the
amount of interest which would have accrued on the principal amount of such Loan
had such event not occurred, at the LIBO Rate that would have been applicable to
such Loan, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period for
such Loan), over (ii) the amount of interest which would accrue on such
principal amount for

<PAGE>
                                                                              35

such period at the interest rate which such Lender would bid were it to bid, at
the commencement of such period, for dollar deposits of a comparable amount and
period from other banks in the Eurodollar market. A certificate of any Lender
setting forth any amount or amounts that such Lender is entitled to receive
pursuant to this Section shall be delivered to the Borrower and shall be
conclusive absent manifest error. The Borrower shall pay such Lender the amount
shown as due on any such certificate within 10 days after receipt thereof.

         SECTION 2.16. Taxes. (a) Any and all payments by or on account of any
obligation of the Borrower hereunder shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided that if the
Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent, Lender or
Issuing Bank (as the case may be) receives an amount equal to the sum it would
have received had no such deductions been made, (ii) the Borrower shall make
such deductions and (iii) the Borrower shall pay the full amount deducted to the
relevant Governmental Authority in accordance with applicable law.

         (b) In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

         (c) The Borrower shall indemnify the Administrative Agent, each Lender
and the Issuing Bank, within 10 days after written demand therefor, for the full
amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent,
such Lender or the Issuing Bank, as the case may be, on or with respect to any
payment by or on account of any obligation of the Borrower hereunder (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority; provided, however, that if written
demand for payment of an Indemnified Tax or Other Tax has not been made by the
Administrative Agent, a Lender or the Issuing Bank within 30 Business Days from
the later of (i) the date the Administrative Agent, such Lender or the Issuing
Bank knew of the imposition thereof or (ii) the date such Indemnified Tax or
Other Tax is due, then the Borrower shall not be obligated to pay or indemnify
the Administrative Agent, such Lender or the Issuing Bank for penalties with
respect to such Indemnified Taxes or Other Taxes that would not have been owed
had such demand been made within 45 days and payment thereof occurred within 60
days from such date. A certificate as to the amount of such payment or liability
delivered to the Borrower by a Lender or the Issuing Bank, or by the
Administrative Agent on its own behalf or on behalf of a Lender or the Issuing
Bank, shall be conclusive absent manifest error.

         (d) As soon as practicable after any payment of Indemnified Taxes or
Other Taxes by the Borrower to a Governmental Authority, the Borrower shall
deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of
the return reporting such

<PAGE>
                                                                              36

payment or other evidence of such payment reasonably satisfactory to the
Administrative Agent.

         (e) Each Foreign Lender that is entitled to an exemption from or
reduction in withholding tax under the laws of the United States (or such other
jurisdiction in which the Borrower may be located) shall, before the time
prescribed by applicable law, and from time to time thereafter (as required by
applicable law) before the date any such form expires or becomes obsolete or
invalid, provide the Borrower and the Administrative Agent with Internal Revenue
Service form W8-BEN or W8-ECI in duplicate, as appropriate, or such other form
prescribed by the Internal Revenue Service that it may legally provide,
certifying that such Foreign Lender is entitled to benefits under an income tax
treaty to which the United States is a party which exempts the Lender from
United States withholding tax or reduces the rate of United States withholding
tax on payments of interest for the account of such Foreign Lender, or
certifying that the income receivable pursuant to this Agreement is effectively
connected with the conduct of such Foreign Lender's trade or business in the
United States and exempt from United States withholding tax.

         (f) If an Issuing Bank, the Administrative Agent or a Lender becomes
aware that it has received a refund in respect of any Indemnified Taxes or Other
Taxes as to which it has been indemnified by the Borrower pursuant to this
Section 2.16 or with respect to which the Borrower has paid additional amounts
pursuant to this Section 2.16, it shall, in a reasonable period of time, pay
over such refund to the Borrower (but only to the extent of indemnity payments
made, or additional amounts paid, by the Borrower under this Section 2.16 with
respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net
of all out-of-pocket expenses of the Administrative Agent or such Lender and
without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund); provided, that the Borrower, upon the
request of the Administrative Agent or such Lender, agrees to repay the amount
paid over to the Borrower (plus any penalties, interest or other charges imposed
by the relevant Governmental Authority) to the Administrative Agent or such
Lender in the event the Administrative Agent or such Lender is required to repay
such refund to such Governmental Authority. This Section shall not be construed
to require the Administrative Agent or any Lender to make available its tax
returns (or any other information relating to its taxes which it deems
confidential) to the Borrower or any other Person.

         SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing of
Set-offs. (a) The Borrower shall make each payment required to be made by it
hereunder (whether of principal, interest, fees or reimbursement of LC
Disbursements, or of amounts payable under Section 2.14, 2.15 or 2.16, or
otherwise) not later than 3:00 p.m., Cleveland time, on the date when due, in
immediately available funds, without set-off or counterclaim. Any amounts
received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its offices at National City Bank,
629 Euclid Avenue, Second Floor, Cleveland, Ohio 44114, except payments to be
made directly to the Issuing Bank or Swingline Lender as expressly provided
herein and except that

<PAGE>
                                                                              37

payments pursuant to Sections 2.14, 2.15, 2.16 and 9.03 shall be made directly
to the Persons entitled thereto. The Administrative Agent shall distribute any
such payments received by it for the account of any other Person to the
appropriate recipient promptly following receipt thereof. If any payment
hereunder shall be due on a day that is not a Business Day, the date for payment
shall be extended to the next succeeding Business Day, and, in the case of any
payment accruing interest, interest thereon shall be payable for the period of
such extension. All payments hereunder shall be made in dollars.

         (b) If at any time insufficient funds are received by and available to
the Administrative Agent to pay fully all amounts of principal, unreimbursed LC
Disbursements, interest and fees then due hereunder, such funds shall be applied
(i) first, towards payment of interest and fees then due hereunder, ratably
among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, towards payment of principal
and unreimbursed LC Disbursements then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of principal and unreimbursed LC
Disbursements then due to such parties.

         (c) If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Revolving Loans or participations in LC Disbursements or
Swingline Loans resulting in such Lender receiving payment of a greater
proportion of the aggregate amount of its Revolving Loans and participations in
LC Disbursements and Swingline Loans and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the
Revolving Loans and participations in LC Disbursements and Swingline Loans of
other Lenders to the extent necessary so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount
of principal of and accrued interest on their respective Revolving Loans and
participations in LC Disbursements and Swingline Loans; provided that (i) if any
such participations are purchased and all or any portion of the payment giving
rise thereto is recovered, such participations shall be rescinded and the
purchase price restored to the extent of such recovery, without interest, and
(ii) the provisions of this paragraph shall not be construed to apply to any
payment made by the Borrower pursuant to and in accordance with the express
terms of this Agreement or any payment obtained by a Lender as consideration for
the assignment of or sale of a participation in any of its Loans or
participations in LC Disbursements to any assignee or participant, other than to
the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions
of this paragraph shall apply). The Borrower consents to the foregoing and
agrees, to the extent it may effectively do so under applicable law, that any
Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against the Borrower rights of set-off and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of the
Borrower in the amount of such participation.

         (d) Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders or the Issuing Bank hereunder that the
Borrower will not make such payment, the Administrative Agent may assume that
the Borrower has made such

<PAGE>
                                                                              38

payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders or the Issuing Bank, as the case may be,
the amount due. In such event, if the Borrower has not in fact made such
payment, then each of the Lenders or the Issuing Bank, as the case may be,
severally agrees to repay to the Administrative Agent forthwith on demand the
amount so distributed to such Lender or Issuing Bank with interest thereon, for
each day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, at the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent
in accordance with banking industry rules on interbank compensation.

         (e) If any Lender shall fail to make any payment required to be made by
it pursuant to Section 2.05(d) or (e), 2.06(b) or 2.17(d), then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Administrative
Agent for the account of such Lender to satisfy such Lender's obligations under
such Sections until all such unsatisfied obligations are fully paid.

         SECTION 2.18. Mitigation Obligations; Replacement of Lenders. (a) If
any Lender requests compensation under Section 2.14, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.16, then such
Lender shall use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment
of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.14 or 2.16, as the case may be, in the
future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Borrower
hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

         (b) If any Lender requests compensation under Section 2.14, or if the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.16,
or if any Lender defaults in its obligation to fund Loans hereunder, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 9.04), all its interests, rights and obligations under this Agreement to
an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the Borrower
shall have received the prior written consent of the Administrative Agent (and,
if a Commitment is being assigned, the Issuing Bank), which consent shall not
unreasonably be withheld, (ii) such Lender shall have received payment of an
amount equal to the outstanding principal of its Loans and participations in LC
Disbursements and Swingline Loans, accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the Borrower (in
the case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Section 2.14 or payments required
to be made pursuant to Section 2.16, such assignment will result in a

<PAGE>
                                                                              39

reduction in such compensation or payments. A Lender shall not be required to
make any such assignment and delegation if, prior thereto, as a result of a
waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

         SECTION 2.19. Increase in Revolving Credit Commitments. (a) The
Borrower may, by written notice to the Administrative Agent, request Additional
Credit Commitments in an amount not to exceed $50,000,000 from one or more
Additional Credit Lenders, which may include any existing Lender; provided that
during the life of this Agreement, the Borrower may only make one request for
Additional Credit Commitments pursuant to this Section 2.19; provided further
that each Additional Credit Lender, if not already a Lender hereunder, shall be
subject to the approval of the Administrative Agent and the Borrower (which
approvals shall not be unreasonably withheld). Each such notice shall set forth
(i) the amount of the Additional Credit Commitments being requested (which shall
be in a minimum amount of $2,500,000) and (ii) the date on which such Additional
Credit Commitments are requested to become effective (which shall not be less
than 10 Business Days nor more than 60 days after the date of such notice).

         (b) The Borrower and each Additional Credit Lender shall execute and
deliver to the Administrative Agent an Additional Credit Assumption Agreement
and such other documentation as the Administrative Agent shall reasonably
specify to evidence the Additional Credit Commitment of such Additional Credit
Lender. The Administrative Agent shall promptly notify each Lender as to the
effectiveness of each Additional Credit Assumption Agreement. Each of the
parties hereto hereby agrees that, upon the effectiveness of any Additional
Credit Assumption Agreement, each such Additional Credit Lender shall, to the
extent not an existing Lender, become a Lender hereunder and this Agreement
shall be deemed amended to the extent (but only to the extent) necessary to
reflect the existence and terms of the Additional Credit Commitment evidenced
thereby.

         (c) Each of the parties hereto hereby agrees that the Administrative
Agent may take any and all actions as may be reasonably necessary to ensure
that, after giving effect to any Additional Credit Commitment pursuant to this
Section 2.19, the outstanding Loans (if any) are held by the Lenders in
accordance with their new pro rata percentages. This may be accomplished at the
discretion of the Administrative Agent (i) by requiring the outstanding Loans to
be prepaid with the proceeds of a new Borrowing, (ii) by causing the existing
Lenders to assign portions of their outstanding Loans to Additional Credit
Lenders, which assignments shall be deemed to be effective pursuant to Section
9.04 or (iii) by any combination of the foregoing. Notwithstanding the
foregoing, in order to eliminate any break funding liability to the Borrower,
if, upon the date that any Additional Credit Commitment becomes effective
pursuant to this Section 2.19, there is an unpaid principal amount of Revolving
Loans to the Borrower, the principal outstanding amount of all such Revolving
Loans shall (A) in the case of such Revolving Loans which are ABR Loans, be
immediately prepaid by the Borrower (but all such Revolving Loans may, on the
terms and conditions hereof, be reborrowed on such date on a pro rata basis,
based on the revised Commitments as then in effect) and (B) in the case of such
Revolving Loans which are Eurodollar Loans, continue to remain outstanding

<PAGE>
                                                                              40

(notwithstanding any other requirement in this Agreement that such Revolving
Loans be held on a pro rata basis based on the revised Commitments as then in
effect) until the end of the then current Interest Period therefor, at which
time such Eurodollar Loans shall be paid by the Borrower (but all such Revolving
Loans may, on the terms and conditions hereof, be reborrowed on such date on a
pro rata basis, based on the Commitments as then in effect).

         (d) Notwithstanding the foregoing, no Additional Credit Commitment
shall become effective under this Section 2.19 unless on the date of such
effectiveness, the conditions set forth in paragraphs (a) and (b) of Section
4.02 shall be satisfied and the Administrative Agent shall have received a
certificate to that effect dated such date and executed by a Financial Officer
of the Borrower.

                                   ARTICLE III

                         Representations and Warranties

         The Borrower represents and warrants to each of the Lenders and the
Administrative Agent that:

         SECTION 3.01. Organization; Powers. Each of the Parent, the Borrower
and the Subsidiaries is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, has all requisite power
and authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in,
and is in good standing in, every jurisdiction where such qualification is
required.

         SECTION 3.02. Authorization; Enforceability. The Transactions to be
entered into by each Loan Party are within such Loan Party's corporate powers
and have been duly authorized by all necessary corporate and, if required,
stockholder action. This Agreement has been duly executed and delivered by each
of the Parent and the Borrower and constitutes, and each other Loan Document to
which any Loan Party is to be a party, when executed and delivered by such Loan
Party, will constitute, a legal, valid and binding obligation of each of the
Parent, the Borrower or such Loan Party (as the case may be), enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors' rights generally
and subject to general principles of equity, regardless of whether considered in
a proceeding in equity or at law.

         SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions
(a) do not require any consent or approval of, registration or filing with, or
any other action by, any Governmental Authority, except such as have been
obtained or made and are in full force and effect, (b) will not violate any
applicable law or regulation or the charter, by-laws or other organizational
documents of any of the Parent, the Borrower or any Subsidiary or any order of
any Governmental Authority, (c) will not violate or result in a default under
any indenture or other agreement for borrowed money or under any other material
agreement binding upon any of the Parent, the Borrower or

<PAGE>
                                                                              41

any Subsidiary or its assets, or give rise to a right thereunder to require any
payment to be made by any of the Parent, the Borrower or any Subsidiary, and (d)
will not result in the creation or imposition of any Lien on any material asset
of any of the Parent, the Borrower or any Subsidiary.

         SECTION 3.04. Financial Condition; No Material Adverse Change. (a) The
Parent has heretofore furnished to the Lenders its consolidated balance sheet
and statements of income, stockholders equity and cash flows (i) as of and for
the fiscal year ended on January 31, 2004, reported on by PricewaterhouseCoopers
LLP, independent public accountants, and (ii) as of and for the fiscal quarter
ended on October 30, 2004, certified by its chief financial officer. Such
financial statements present fairly, in all material respects, the financial
position and results of operations and cash flows of the Parent and its
consolidated Subsidiaries as of such dates and for such periods in accordance
with GAAP, subject to year-end audit adjustments and the absence of footnotes in
the case of the statements referred to in clause (ii) above.

         (b) Since January 31, 2004, there has been no material adverse change
in the business, assets, operations, prospects or condition, financial or
otherwise, of the Parent, the Borrower and the Subsidiaries, taken as a whole.

         SECTION 3.05. Properties. (a) Each of the Parent, the Borrower and the
Subsidiaries has good title to, or valid leasehold interests in, all its real
and personal property material to its business, except for defects in title
that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.

         (b) Each of the Parent, the Borrower and the Subsidiaries owns, or is
licensed to use, all trademarks, trade names, copyrights, patents and other
intellectual property material to its business, and the use thereof by the
Parent, the Borrower and the Subsidiaries does not infringe upon the rights of
any other Person, except for any such failure to own or be licensed and
infringements that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

         SECTION 3.06. Litigation and Environmental Matters. (a) There are no
actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Borrower, threatened
against or affecting any of the Parent, the Borrower or any of the Subsidiaries
(i) as to which there is a reasonable possibility of an adverse determination
and that, if adversely determined, could reasonably be expected, individually or
in the aggregate, to result in a Material Adverse Effect (other than the
Disclosed Matters) or (ii) that expressly contest the validity of this Agreement
or the Transactions.

         (b) Except for the Disclosed Matters and except with respect to any
other matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, none of the Parent, the
Borrower nor any Subsidiary (i) has failed to comply with any Environmental Law
or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) has become subject to any
Environmental Liability, (iii) has received notice of any claim with respect

<PAGE>
                                                                              42

to any Environmental Liability or (iv) knows of any basis for any Environmental
Liability.

         (c) There has been no change in the status of the Disclosed Matters
that, individually or in the aggregate, has resulted in, or materially increased
the likelihood of, a Material Adverse Effect.

         SECTION 3.07. Compliance with Laws and Agreements. Each of the Parent,
the Borrower and the Subsidiaries is in compliance with all laws, regulations
and orders of any Governmental Authority applicable to it or its property and
all indentures, agreements and other instruments binding upon it or its
property, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect. No
Default has occurred and is continuing.

         SECTION 3.08. Investment and Holding Company Status. None of the
Parent, the Borrower nor any Subsidiary is (a) an "investment company" as
defined in, or subject to regulation under, the Investment Company Act of 1940
or (b) a "holding company" as defined in, or subject to regulation under, the
Public Utility Holding Company Act of 1935.

         SECTION 3.09. Taxes. Each of the Parent, the Borrower and the
Subsidiaries has timely filed or caused to be filed all Tax returns and reports
required to have been filed and has paid or caused to be paid all Taxes required
to have been paid by it, except (a) Taxes that are being contested in good faith
by appropriate proceedings and for which the Parent, the Borrower or such
Subsidiary, as applicable, has set aside on its books adequate reserves or (b)
to the extent that the failure to do so could not reasonably be expected to
result in a Material Adverse Effect.

         SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events for
which liability is reasonably expected to occur, could reasonably be expected to
result in a Material Adverse Effect.

         SECTION 3.11. Disclosure. The reports, financial statements,
certificates and other information furnished by or on behalf of the Parent or
the Borrower to the Administrative Agent or any Lender in connection with the
negotiation of this Agreement or delivered hereunder (as modified or
supplemented by other information so furnished), taken as a whole, do not
contain any material misstatement of fact or omit to state any material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that, with respect to
projected financial information, the Borrower represents only that such
information was prepared in good faith based upon assumptions believed to be
reasonable at the time.

         SECTION 3.12. Subsidiaries. Schedule 3.12 sets forth the name of, and
the ownership interest of the Parent and each of its Subsidiaries in, and of the
Borrower and each of its Subsidiaries in, each Subsidiary, in each case as of
the Restatement Effective Date. Each Domestic Subsidiary is a Loan Party as of
the Restatement Effective Date.

<PAGE>
                                                                              43

                                   ARTICLE IV

                                   Conditions

         SECTION 4.01. Restatement Effective Date. Without affecting the rights
of the Borrower or any Subsidiary hereunder at all times prior to the
Restatement Effective Date, the amendment and restatement of the Original
Agreement in the form hereof and the obligations of the Lenders to make Loans
and acquire participations in Letters of Credit and Swingline Loans and of the
Issuing Banks to issue Letters of Credit hereunder shall not become effective
until the date on which each of the following conditions is satisfied (or waived
in accordance with Section 9.02):

         (a) The Administrative Agent (or its counsel) shall have received from
each party hereto either (i) a counterpart of this Agreement signed on behalf of
such party or (ii) written evidence satisfactory to the Administrative Agent
(which may include telecopy transmission of a signed signature page of this
Agreement) that such party has signed a counterpart of this Agreement.

         (b) The Administrative Agent shall have received a favorable written
opinion (addressed to the Administrative Agent and the Lenders and dated the
Restatement Effective Date) of Vorys, Sater, Seymour and Pease LLP, counsel for
the Borrower, acceptable to the Administrative Agent, substantially in the form
of Exhibit D, and covering such other matters relating to the Borrower, this
Agreement or the Transactions as the Required Lenders shall reasonably request.
The Borrower hereby requests such counsel to deliver such opinion.

         (c) The Administrative Agent shall have received such documents and
certificates as the Administrative Agent or its counsel may reasonably request
relating to the organization, existence and good standing of each Loan Party,
the authorization of the Transactions and any other legal matters relating to
the Loan Parties, this Agreement or the Transactions, all in form and substance
reasonably satisfactory to the Administrative Agent and its counsel.

         (d) The Administrative Agent shall have received a certificate, dated
the Restatement Effective Date and signed by a Financial Officer of the
Borrower, confirming compliance as of the Restatement Effective Date with the
conditions set forth in paragraphs (a) and (b) of Section 4.02.

         (e) There shall be no loans outstanding under the Original Credit
Agreement immediately prior to the Restatement Effective Date. All interest,
fees, indemnities and other amounts accrued under the Original Credit Agreement
in respect of periods prior to the Restatement Effective Date, regardless of
whether due under the Original Credit Agreement, shall have been paid by the
Borrower to the Administrative Agent for the accounts of the lenders entitled
thereto under the Original Credit Agreement. In addition, the Administrative
Agent shall have received, to the extent invoiced, reimbursement or payment of
all out-of-pocket expenses required to be reimbursed or paid by the Borrower
hereunder or under the Original Credit Agreement.

<PAGE>
                                                                              44

         (f) The Administrative Agent shall have received counterparts of the
Guarantee Agreement signed on behalf of the Parent and each Domestic Subsidiary.

The Administrative Agent shall notify the Borrower and the Lenders of the
Restatement Effective Date, and such notice shall be conclusive and binding.
Notwithstanding the foregoing, the obligations of the Lenders to make Loans and
of the Issuing Bank to issue Letters of Credit hereunder shall not become
effective unless each of the foregoing conditions is satisfied (or waived
pursuant to Section 9.02) at or prior to 3:00 p.m., Cleveland time, on December
15, 2004 (and, in the event such conditions are not so satisfied or waived, the
Commitments shall terminate at such time).

         SECTION 4.02. Conditions to Each Credit Event. The obligation of each
Lender to make a Loan on the occasion of any Borrowing, and of the Issuing Bank
to issue, amend, renew or extend any Letter of Credit, is subject to the
satisfaction of the following conditions:

         (a) The representations and warranties of each of the Parent and the
Borrower set forth in this Agreement shall be true and correct on and as of the
date of such Borrowing or the date of issuance, amendment, renewal or extension
of such Letter of Credit, as applicable, except to the extent any such
representation or warranty is limited to another particular date, in which
instance, such representation or warranty shall be true and correct on and as of
such other date.

         (b) At the time of and immediately after giving effect to such
Borrowing or the issuance, amendment, renewal or extension of such Letter of
Credit, as applicable, no Default shall have occurred and be continuing.

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit shall be deemed to constitute a representation and warranty by each of
the Parent and the Borrower on the date thereof as to the matters specified in
paragraphs (a) and (b) of this Section.

                                    ARTICLE V

                              Affirmative Covenants

         Until the Commitments have expired or been terminated and the principal
of and interest on each Loan and all fees payable hereunder shall have been paid
in full and all Letters of Credit shall have expired or terminated and all LC
Disbursements shall have been reimbursed, each of the Parent and the Borrower
covenants and agrees with the Lenders that:

         SECTION 5.01. Financial Statements and Other Information. The Parent
will furnish to the Administrative Agent and each Lender:

               (a) within 90 days after the end of each fiscal year of the
         Parent, its audited consolidated balance sheet and related statements
         of income, stockholders' equity and cash flows as of the end of and for
         such year, setting forth in each case in comparative form the figures
         for the previous

<PAGE>
                                                                              45

         fiscal year, all reported on by PricewaterhouseCoopers LLP or other
         independent public accountants of recognized national standing (without
         a "going concern" or like qualification or exception and without any
         qualification or exception as to the scope of such audit) to the effect
         that such consolidated financial statements present fairly in all
         material respects the financial condition and results of operations of
         the Parent and its consolidated Subsidiaries on a consolidated basis in
         accordance with GAAP consistently applied;

               (b) within 45 days after the end of each of the first three
         fiscal quarters of each fiscal year of the Parent, its consolidated
         balance sheet as of the end of such fiscal quarter, the related
         statements of income for such fiscal quarter and the then elapsed
         portion of the fiscal year and the related statement of cash flows for
         the then elapsed portion of the fiscal year, setting forth in each case
         in comparative form the figures for the corresponding period or periods
         of (or, in the case of the balance sheet, as of the end of) the
         previous fiscal year, all certified by one of its Financial Officers as
         presenting fairly in all material respects the financial condition and
         results of operations of the Parent and its consolidated Subsidiaries
         on a consolidated basis in accordance with GAAP consistently applied,
         subject to normal year-end audit adjustments and the absence of
         footnotes;

               (c) concurrently with any delivery of financial statements under
         clause (a) or (b) above, a certificate of a Financial Officer of the
         Borrower (i) certifying as to whether a Default has occurred and is
         continuing and, if a Default has occurred and is continuing, specifying
         the details thereof and any action taken or proposed to be taken with
         respect thereto, (ii) setting forth reasonably detailed calculations
         demonstrating compliance with Sections 6.10 and 6.11 and (iii) stating
         whether any change in GAAP or in the application thereof has occurred
         since the date of the previous delivery of financial statements under
         clause (a) or (b) above;

               (d) promptly after the same become publicly available, copies of
         all periodic and other reports, proxy statements and other materials
         publicly filed by the Parent, the Borrower or any Subsidiary with the
         Securities and Exchange Commission, or any Governmental Authority
         succeeding to any or all of the functions of said Commission, or with
         any national securities exchange, or distributed by the Parent or the
         Borrower to its shareholders generally, as the case may be; and

               (e) promptly following any request therefor, such other
         information regarding the operations, business affairs and financial
         condition of the Parent, the Borrower or any Subsidiary, or compliance
         with the terms of this Agreement, as the Administrative Agent or any
         Lender may reasonably request; provided that if no Loans are
         outstanding hereunder, the requests of Lenders under this Section
         5.01(e) shall be subject to the approval of the Administrative Agent.

<PAGE>
                                                                              46

         SECTION 5.02. Notices of Material Events. The Borrower will furnish to
the Administrative Agent and each Lender prompt written notice of the following:

               (a) the occurrence of any Default;

               (b) the filing or commencement of any action, suit or proceeding
         by or before any arbitrator or Governmental Authority against or
         affecting the Borrower or any Affiliate thereof that could reasonably
         be expected to be adversely determined in a manner that would result in
         a Material Adverse Effect;

               (c) the occurrence of any ERISA Event that, alone or together
         with any other ERISA Events that have occurred, could reasonably be
         expected to result in a Material Adverse Effect; and

               (d) any other development that results in, or could reasonably be
         expected to result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Borrower setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.

         SECTION 5.03. Existence; Conduct of Business. Each of the Parent and
the Borrower will, and will cause each of the Subsidiaries to, do or cause to be
done all things necessary to preserve, renew and keep in full force and effect
its legal existence and the rights, licenses, permits, privileges and franchises
material to the conduct of the business of the Parent, the Borrower and the
Subsidiaries, taken as a whole; provided that the foregoing shall not prohibit
any merger, consolidation, liquidation or dissolution permitted under Section
6.04.

         SECTION 5.04. Payment of Obligations. Each of the Parent and the
Borrower will, and will cause each of the Subsidiaries to, pay its obligations,
including Tax liabilities, that, if not paid, could result in a Material Adverse
Effect before the same shall become delinquent or in default, except where (a)
the validity or amount thereof is being contested in good faith by appropriate
proceedings, (b) the Parent, the Borrower or such Subsidiary has set aside on
its books adequate reserves with respect thereto in accordance with GAAP and (c)
the failure to make payment pending such contest could not reasonably be
expected to result in a Material Adverse Effect.

         SECTION 5.05. Maintenance of Properties; Insurance. Each of the Parent
and the Borrower will, and will cause each of the Subsidiaries to, (a) keep and
maintain all property material to the conduct of its business in good working
order and condition, ordinary wear and tear excepted, and (b) maintain, with
financially sound and reputable insurance companies, insurance in such amounts
and against such risks as are customarily maintained by companies engaged in the
same or similar businesses operating in the same or similar locations.

<PAGE>
                                                                              47

         SECTION 5.06. Books and Records; Inspection Rights. Each of the Parent
and the Borrower will, and will cause each of the Subsidiaries to, keep proper
books of record and account in which full, true and correct entries are made of
all dealings and transactions in relation to its business and activities. Each
of the Parent and the Borrower will, and will cause each of the Subsidiaries to,
permit any representatives designated by the Administrative Agent or any Lender,
upon reasonable prior notice and at such party's expense, to visit and inspect
its properties, to examine and make extracts from its books and records, and to
discuss its affairs, finances and condition with its officers and, if an Event
of Default exists, its independent accountants. Such visits and inspections
shall be arranged through the Administrative Agent and shall not occur more than
once in any fiscal quarter unless an Event of Default shall exist.

         SECTION 5.07. Compliance with Laws. Each of the Parent and the Borrower
will, and will cause each of the Subsidiaries to, comply with all laws, rules,
regulations and orders of any Governmental Authority applicable to it or its
property, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect.

         SECTION 5.08. Use of Proceeds and Letters of Credit. The proceeds of
the Loans will be used only for working capital, capital expenditures and other
general corporate purposes. No part of the proceeds of any Loan will be used,
whether directly or indirectly, for any purpose that entails a violation of any
of the Regulations of the Board, including Regulations T, U and X. Letters of
Credit will be issued only to support import or other needs in the ordinary
course of business.

         SECTION 5.09. Additional Subsidiaries; Guarantee Requirement. (a) If
any additional Domestic Subsidiary is formed or acquired after the Restatement
Effective Date, the Parent or the Borrower (as the case may be) will notify the
Administrative Agent thereof within 30 days.

         (b) The Parent or the Borrower (as the case may be) will promptly cause
any Domestic Subsidiary that is not then a Guarantor to become a party to the
Guarantee Agreement within 30 days of the acquisition or creation of such
Domestic Subsidiary.

                                   ARTICLE VI

                               Negative Covenants

         Until the Commitments have expired or terminated and the principal of
and interest on each Loan and all fees payable hereunder have been paid in full
and all Letters of Credit have expired or terminated and all LC Disbursements
shall have been reimbursed, each of the Parent and the Borrower covenants and
agrees with the Lenders that:

         SECTION 6.01. Indebtedness. The Parent and the Borrower will not, and
will not permit any Subsidiary to, create, incur, assume or permit to exist any
Indebtedness or Attributable Debt in respect of sale-leaseback transactions,
except:

<PAGE>
                                                                              48

               (a) Indebtedness created under the Loan Documents;

               (b) Indebtedness existing on the Restatement Effective Date and
         (in the case of any such Indebtedness in a principal amount in excess
         of $1,000,000) set forth in Schedule 6.01 and extensions, renewals and
         replacements of any such Indebtedness that do not increase the
         outstanding principal amount thereof;

               (c) Indebtedness (i) resulting from any loan or advance by a Loan
         Party to another Loan Party, (ii) resulting from any loan or advance by
         a Subsidiary that is not a Loan Party to a Loan Party, (iii) resulting
         from any loan or advance by any Subsidiary that is not a Loan Party to
         any other Subsidiary that is not a Loan Party and (iv) resulting from
         any loan, advance or Guarantee by any Loan Party to or in favor of any
         Subsidiary that is not a Loan Party; provided that any such loan,
         advance or Guarantee made pursuant to this clause (iv) is permitted by
         Section 6.05(c) or 6.05(e);

               (d) Indebtedness of the Parent, the Borrower or any Domestic
         Subsidiary incurred to finance the acquisition, construction or
         improvement of any fixed or capital assets, including Capital Lease
         Obligations and any Indebtedness assumed in connection with the
         acquisition of any such assets or secured by a Lien on any such assets
         prior to the acquisition thereof, and extensions, renewals and
         replacements of any such Indebtedness that do not increase the
         outstanding principal amount thereof; provided that such Indebtedness
         is incurred prior to or within 90 days after such acquisition or the
         completion of such construction or improvement;

               (e) Indebtedness and Attributable Debt of the Parent, the
         Borrower or any Domestic Subsidiary which (i) is secured by mortgages
         on real estate assets or (ii) results from a sale-leaseback transaction
         permitted by Section 6.03 (and, in each case, extensions, renewals and
         replacements of such Indebtedness or Attributable Debt), provided that
         the aggregate amount of Indebtedness and Attributable Debt (including
         any such extensions, renewals or replacements) permitted by this clause
         (e) shall not exceed $100,000,000 at any time outstanding;

               (f) Indebtedness of any Person that becomes a Subsidiary after
         the Restatement Effective Date; provided that (i) such Indebtedness
         exists at the time such Person becomes a Subsidiary and is not created
         in contemplation of or in connection with such Person becoming a
         Subsidiary and (ii) the aggregate principal amount of Indebtedness
         permitted by this clause (f) shall not exceed $20,000,000 at any time
         outstanding;

               (g) other unsecured Indebtedness of the Parent, the Borrower and
         the Domestic Subsidiaries in an aggregate amount not exceeding

<PAGE>
                                                                              49

         $150,000,000 at any time outstanding; provided that such Indebtedness,
         as permitted under this Section 6.01(g), may not be comprised of
         obligations in respect of letters of credit; and

               (h) Indebtedness of Foreign Subsidiaries in an aggregate amount
         not exceeding $20,000,000 at any time outstanding.

         SECTION 6.02. Liens. The Parent and the Borrower will not, and will not
permit any Subsidiary to, create, incur, assume or permit to exist any Lien on
any property or asset now owned or hereafter acquired by it, or assign or sell
any income or revenues (including accounts receivable) or rights in respect of
any thereof, except:

               (a) Permitted Encumbrances;

               (b) any Lien on any property or asset of the Parent, the Borrower
         or any Subsidiary existing on the Restatement Effective Date and (in
         the case of any Lien securing obligations in an aggregate amount in
         excess of $1,000,000) set forth in Schedule 6.02; provided that (i)
         such Lien shall not apply to any other property or asset of the Parent,
         Borrower or any Subsidiary and (ii) such Lien shall secure only those
         obligations which it secures on the Restatement Effective Date and
         extensions, renewals and replacements thereof that do not increase the
         outstanding principal amount thereof;

               (c) any Lien existing on any property or asset prior to the
         acquisition thereof by the Parent, the Borrower or any Subsidiary or
         existing on any property or asset of any Person that becomes a
         Subsidiary after the Restatement Effective Date prior to the time such
         Person becomes a Subsidiary; provided that (i) such Lien is not created
         in contemplation of or in connection with such acquisition or such
         Person becoming a Subsidiary, (ii) such Lien shall not apply to any
         other property or assets of the Parent, the Borrower or any Subsidiary
         and (iii) such Lien shall secure only those obligations which it
         secures on the date of such acquisition or the date such Person becomes
         a Subsidiary and extensions, renewals and replacements thereof that do
         not increase the outstanding principal amount thereof;

               (d) Liens on fixed or capital assets other than real estate
         acquired, constructed or improved by the Parent, the Borrower or any
         Subsidiary; provided that (i) such security interests secure
         Indebtedness permitted by clause (d) of Section 6.01, (ii) such
         security interests and the Indebtedness secured thereby are incurred
         prior to or within 90 days after such acquisition or the completion of
         such construction or improvement, (iii) the Indebtedness secured
         thereby does not exceed the cost of acquiring, constructing or
         improving such fixed or capital assets and (iv) such security interests
         shall not apply to any other property or assets of the Parent, the
         Borrower or any Subsidiary;

<PAGE>
                                                                              50

               (e) Liens on real estate assets securing Indebtedness or
         Attributable Debt permitted by Section 6.01(e);

               (f) Liens of sellers of goods to the Borrower and its
         Subsidiaries arising under Article 2 of the Uniform Commercial Code or
         similar provisions of applicable law in the ordinary course of
         business, covering only the goods sold and securing only the unpaid
         purchase price for such goods and related expenses;

               (g) Liens on raw materials and inventory acquired in the ordinary
         course of business securing obligations in respect of Trade Letters of
         Credit issued hereunder; and

               (h) Liens on assets of Foreign Subsidiaries securing Indebtedness
         permitted by Section 6.01(h).

         SECTION 6.03. Sale-Leaseback Transactions. The Parent and the Borrower
will not, and will not permit any Subsidiary to, enter into any arrangement,
directly or indirectly, with any Person whereby they shall sell or transfer any
property, real or personal, used or useful in their business, whether now owned
or hereafter acquired, and thereafter rent or lease such property or other
property which they intend to use for substantially the same purpose or purposes
as the property being sold or transferred; provided that the Borrower, Parent or
any Subsidiary may enter into a sale-leaseback transactions with respect to real
estate assets, including improved real property in Franklin County, Ohio,
provided that the Indebtedness or Attributable Debt with respect thereto is
permitted by Section 6.01(e).

         SECTION 6.04. Fundamental Changes. (a) The Parent and the Borrower will
not, and will not permit any Subsidiary to, merge into or consolidate with any
other Person, or permit any other Person to merge into or consolidate with it,
or sell, transfer, lease or otherwise dispose of (in one transaction or in a
series of transactions) all or any substantial part of its assets, or all or
substantially all of the stock of any Subsidiary (in each case, whether now
owned or hereafter acquired), or liquidate or dissolve, except that, if at the
time thereof and immediately after giving effect thereto no Default shall have
occurred and be continuing (i) any Person may merge into the Parent or the
Borrower in a transaction in which the Parent or the Borrower, as the case may
be, is the surviving corporation, (ii) any Person may merge into any Subsidiary
in a transaction in which the surviving entity is a Subsidiary, (iii) any
Subsidiary may sell, transfer, lease or otherwise dispose of its assets to the
Parent, the Borrower or another Loan Party, (iv) any disposition of assets
constituting an investment permitted by Section 6.05(c) shall be permitted and
(v) any Subsidiary may liquidate or dissolve if the Borrower or the Parent (as
the case may be) determines in good faith that such liquidation or dissolution
is in the best interests of the Borrower or the Parent (as the case may be) and
is not materially disadvantageous to the Lenders; provided that any such merger
involving a Person that is not a wholly owned Subsidiary immediately prior to
such merger shall not be permitted unless also permitted by Section 6.05.

<PAGE>
                                                                              51

         (b) The Parent and the Borrower will not, and will not permit any
Subsidiary to, engage to any material extent in any business other than
businesses of the type conducted by the Parent, the Borrower and the
Subsidiaries on the date of execution of this Agreement and businesses
reasonably related or incidental thereto.

         SECTION 6.05. Investments, Loans, Advances, Guarantees and
Acquisitions. The Parent and the Borrower will not, and will not permit any
Subsidiary to, purchase, hold or acquire (including pursuant to any merger with
any Person that was not a wholly owned Subsidiary prior to such merger) any
capital stock, evidences of indebtedness or other securities (including any
option, warrant or other right to acquire any of the foregoing) of, make or
permit to exist any loans or advances to, Guarantee any obligations of, or make
or permit to exist any investment or any other interest in, any other Person, or
purchase or otherwise acquire (in one transaction or a series of transactions)
any assets of any other Person constituting a business unit, except:

               (a) Permitted Investments;

               (b) investments by the Parent, the Borrower or any Subsidiary
         that is a Guarantor in the Parent, the Borrower or any such Subsidiary;

               (c) additional purchases of or investments by the Parent, the
         Borrower or any Subsidiary in the capital stock of Subsidiaries,
         including Foreign Subsidiaries, joint ventures or the capital stock,
         assets, obligations or other securities of or interests in other
         Persons, and loans and advances by the Parent, the Borrower or any
         Domestic Subsidiary to or in favor of, Foreign Subsidiaries, in an
         amount in the aggregate at any time outstanding which does not exceed
         15% of consolidated shareholders' equity of the Parent;

               (d) Indebtedness permitted by clause (c)(i), (ii), or (iii) of
         Section 6.01;

               (e) Guarantees of Indebtedness of any Loan Party permitted by
         Section 6.01 and Guarantees of Indebtedness of Foreign Subsidiaries
         permitted by Section 6.01(h);

               (f) loans and advances to officers and directors of any Loan
         Party (or employees thereof provided such loans and advances are
         approved by an officer of a Loan Party) for travel, entertainment and
         relocation expenses in the ordinary course of business in an aggregate
         principal amount outstanding at any time that shall not exceed
         $1,000,000; and

               (g) investments of funds intended to fund deferred compensation
         liabilities in an aggregate amount not to exceed $75,000,000 at any
         time outstanding, provided that such investments are made pursuant to
         policies approved from time to time by the Board of Directors of the
         Parent and continue at all times to be assets of the Parent, the
         Borrower or another Loan Party subject to the claims of its general
         creditors.

<PAGE>
                                                                              52

         SECTION 6.06. Swap Agreements. The Borrower will not, and will not
permit any of its Subsidiaries to, enter into any Swap Agreement, except (a)
Swap Agreements entered into to hedge or mitigate risks to which the Borrower or
any Subsidiary has actual exposure (other than those in respect of Equity
Interests of the Borrower or any of its Subsidiaries), and (b) Swap Agreements
entered into in order to effectively cap, collar or exchange interest rates
(from fixed to floating rates, from one floating rate to another floating rate
or otherwise) with respect to any interest-bearing liability or investment of
the Borrower or any Subsidiary; provided that the Swap Agreements permitted by
this Section 6.06 may only be provided by (i) a domestic office of any
commercial bank organized under the laws of the United States of America or any
State thereof which has a combined capital and surplus and undivided profits of
not less than $100,000,000, (ii) any Lender or (iii) a foreign banking
institution or foreign branch of a domestic commercial bank the long-term debt
of which (or of its holding company in the case of a domestic bank) is rated at
least A- by S&P and A3 by Moody's; provided further that all Swap Agreements
permitted by this Section 6.06 must conform to the standards set forth in an
ISDA master agreement.

         SECTION 6.07. Restricted Payments. The Parent and the Borrower will
not, and will not permit any Subsidiary to, declare or make, or agree to pay or
make, directly or indirectly, any Restricted Payment, except (a) the Parent and
the Borrower may declare and pay dividends with respect to its Equity Interests
payable solely in additional shares of its common stock; (b) if no Default has
occurred and is continuing, the Parent may declare and pay and, if declared when
no Default exists, the Borrower may pay, dividends in cash in a cumulative
aggregate amount for all such dividends declared after the Restatement Effective
Date not to exceed 40% of Consolidated Net Income for the period from February
1, 2004 through the end of the most recently ended fiscal quarter of the Parent
(considered as a single accounting period); (c) Subsidiaries may (i) declare and
pay dividends or make distributions ratably with respect to their Equity
Interests and (ii) may make Restricted Payments to the Parent, and other
Subsidiaries of the Parent, in amounts necessary to enable the Parent to pay the
dividends described in clause (b) above, along with standard costs associated
with such payment of dividends or distributions, and to pay taxes and operating
and professional expenses; (d) the Parent, the Borrower and the Subsidiaries may
make Restricted Payments pursuant to and in accordance with employment
contracts, stock option plans or other benefit plans or similar arrangements for
consultants, management (including directors and officers) or employees of the
Parent, the Borrower and the Subsidiaries; (e) so long as no Default or Event of
Default shall exist, the Parent and the Borrower may (i) repurchase fractional
shares of common stock of the Parent and (ii) repurchase shares of common stock
of the Parent for cash in any amount, so long as no Loans are outstanding at the
time of such repurchases or, if Loans are outstanding at the time of any
proposed repurchase during any fiscal year, repurchase additional shares of
common stock of the Parent during such fiscal year in an aggregate amount not in
excess of 40% of Consolidated Net Income for the immediately preceding fiscal
year less the aggregate amount of any repurchases previously made in such fiscal
year (it being understood that all purchases of shares of common stock on the
open market shall be subject to the limitations set out in this clause (e) and
are not separately permitted by clause (d) above); and (f) any declaration of a
dividend in connection with a stockholders' rights plan, or the issuance of
rights, stock or

<PAGE>
                                                                              53

other property under any stockholders' rights plan, or the redemption or
repurchase of rights pursuant thereto.

         SECTION 6.08. Transactions with Affiliates. The Parent and the Borrower
will not, and will not permit any Subsidiary to, sell, lease or otherwise
transfer any property or assets to, or purchase, lease or otherwise acquire any
property or assets from, or otherwise engage in any other transactions with, any
of its Affiliates, except (a) in the ordinary course of business at prices and
on terms and conditions not less favorable to the Parent and the Borrower or
such Subsidiary than could be obtained on an arm's-length basis from unrelated
third parties, (b) transactions between or among the Parent, the Borrower and
their wholly owned Subsidiaries, not involving any other Affiliate and (c) any
Restricted Payment permitted by Section 6.07.

         SECTION 6.09. Restrictive Agreements. The Parent and the Borrower will
not, and will not permit any Subsidiary to, directly or indirectly, enter into,
incur or permit to exist any agreement or other arrangement that prohibits,
restricts or imposes any condition upon (a) the ability of the Parent, the
Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any
of its property or assets to secure the obligations under the Loan Documents, or
(b) the ability of any Subsidiary to pay dividends or other distributions with
respect to any shares of its capital stock or to make or repay loans or advances
to the Parent, the Borrower or any other Subsidiary or to Guarantee Indebtedness
of the Parent, the Borrower or any other Subsidiary; provided that (i) the
foregoing shall not apply to restrictions and conditions imposed by law or by
this Agreement, (ii) the foregoing shall not apply to restrictions and
conditions existing on the Restatement Effective Date identified on Schedule
6.09 (but shall apply to any amendment or modification expanding the scope of
any such restriction or condition), (iii) the foregoing shall not apply to
customary restrictions and conditions contained in agreements relating to the
sale of a Subsidiary pending such sale, provided such restrictions and
conditions apply only to the Subsidiary that is to be sold and such sale is
permitted hereunder, (iv) clause (a) of the foregoing shall not apply to
restrictions or conditions imposed by any agreement relating to secured
Indebtedness permitted by this Agreement if such restrictions or conditions
apply only to the property or assets securing such Indebtedness and (v) clause
(a) of the foregoing shall not apply to customary provisions in leases and other
contracts restricting the assignment thereof.

         SECTION 6.10. Leverage Ratio. The Parent and the Borrower will not
permit the Leverage Ratio at the end of any fiscal quarter to be greater than
3.25 to 1.00.

         SECTION 6.11. Coverage Ratio. The Parent and the Borrower will not
permit the Coverage Ratio at the end of any fiscal quarter to be less 2.50 to
1.00.

         SECTION 6.12. Accounting Changes. The Parent and the Borrower will not,
and will not permit any Subsidiary to, change its accounting policies or
practices from those utilized in the preparation of the financial statements
referred to in Section 3.04, except as permitted or required by GAAP
consistently applied.

<PAGE>
                                                                              54

                                  ARTICLE VII

                                Events of Default

         If any of the following events ("Events of Default") shall occur:

         (a) the Borrower shall fail to pay any principal of any Loan or any
reimbursement obligation in respect of any LC Disbursement when and as the same
shall become due and payable, whether at the due date thereof or at a date fixed
for prepayment thereof or otherwise;

         (b) the Borrower shall fail to pay any interest on any Loan or any fee
or any other amount (other than an amount referred to in clause (a) of this
Article) payable under this Agreement, when and as the same shall become due and
payable, and such failure shall continue unremedied for a period of three
Business Days;

         (c) any representation or warranty made or deemed made by or on behalf
of the Parent, the Borrower or any Subsidiary in this Agreement or any amendment
or modification hereof or waiver hereunder, or in any report, certificate,
financial statement or other document furnished pursuant to this Agreement or
any amendment or modification hereof or waiver hereunder, shall prove to have
been incorrect in any material respect when made or deemed made;

         (d) the Parent or the Borrower shall fail to observe or perform any
covenant, condition or agreement contained in Section 5.02(a), 5.03 (with
respect to the Borrower's existence) or 5.08 or in Article VI;

         (e) the Parent or the Borrower shall fail to observe or perform any
covenant, condition or agreement contained in this Agreement (other than those
specified in clause (a), (b) or (d) of this Article), and such failure shall
continue unremedied for a period of 30 days after notice thereof from the
Administrative Agent to the Borrower (which notice will be given at the request
of any Lender);

         (f) any Loan Party shall fail to make any payment (whether of principal
or interest and regardless of amount) in respect of any Material Indebtedness,
when and as the same shall become due and payable and after giving effect to up
to the first 30 days of any grace periods applicable thereto;

         (g) 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 of any Material Indebtedness or any trustee or
agent on its or their behalf to cause any Material Indebtedness to become due,
or to require the prepayment, repurchase, redemption or defeasance thereof,
prior to its scheduled maturity; provided that this clause (g) shall not apply
to secured Indebtedness that becomes due as a result of the voluntary sale or
transfer of the property or assets securing such Indebtedness;

         (h) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or other relief
in respect of the Parent, the Borrower or any Material Subsidiary or its debts,
or of a substantial part of

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                                                                              55

its assets, under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect or (ii) the appointment
of a receiver, trustee, custodian, sequestrator, conservator or similar official
for the Parent, the Borrower or any Material Subsidiary or for a substantial
part of its assets, and, in any such case, such proceeding or petition shall
continue undismissed for 60 days or an order or decree approving or ordering any
of the foregoing shall be entered;

         (i) the Parent, the Borrower or any Material Subsidiary shall (i)
voluntarily commence any proceeding or file any petition seeking liquidation,
reorganization or other relief under any Federal, state or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect, (ii) consent
to the institution of any proceeding or petition described in clause (h) of this
Article, (iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Parent, the
Borrower or any Material Subsidiary or for a substantial part of its assets,
(iv) file an answer admitting the material allegations of a petition filed
against it in any such proceeding, (v) make a general assignment for the benefit
of creditors or (vi) take any corporate action for the purpose of effecting any
of the foregoing;

         (j) the Parent, the Borrower or any Material Subsidiary shall become
unable, admit in writing or fail generally to pay its debts as they become due;

         (k) one or more judgments for the payment of money in an aggregate
amount in excess of $10,000,000 (net of any insurance coverage available
therefor from a responsible insurance company that is not denying its liability
with respect thereto) shall be rendered against the Parent, the Borrower, any
Subsidiary or any combination thereof and the same shall remain undischarged for
a period of 30 consecutive days during which execution shall not be effectively
stayed, or any action shall be legally taken by a judgment creditor to attach or
levy upon any assets of the Parent, the Borrower or any Subsidiary to enforce
any such judgment;

         (l) an ERISA Event shall have occurred that, in the opinion of the
Required Lenders, when taken together with all other ERISA Events that have
occurred, could reasonably be expected to result in a Material Adverse Effect;

         (m) any Guarantee of any Guarantor under the Guarantee Agreement shall
cease to be (other than pursuant to the terms of the Guarantee Agreement), or
shall be asserted by any Loan Party not to be, a legal, valid and binding
obligation of such Guarantor, other than as a result of an event generally
described in any of clauses (h), (i) or (j) above with respect to a Subsidiary
that is not a Material Subsidiary; or

         (n) a Change in Control shall occur;

then, and in every such event (other than an event with respect to the Borrower
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Borrower, take either or
both of the following actions, at the same or different times: (i) terminate the
Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable

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                                                                              56

in whole (or in part, in which case any principal not so declared to be due and
payable may thereafter be declared to be due and payable), and thereupon the
principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued
hereunder, shall become due and payable immediately, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower; and in case of any event with respect to the Borrower described in
clause (h) or (i) of this Article, the Commitments shall automatically terminate
and the principal of the Loans then outstanding, together with accrued interest
thereon and all fees and other obligations of the Borrower accrued hereunder,
shall automatically become due and payable, without presentment, demand, protest
or other notice of any kind, all of which are hereby waived by the Borrower.

                                  ARTICLE VIII

                            The Administrative Agent

         Each of the Lenders and the Issuing Bank hereby irrevocably appoints
the Administrative Agent as its agent and authorizes the Administrative Agent to
take such actions on its behalf and to exercise such powers as are delegated to
the Administrative Agent by the terms hereof, together with such actions and
powers as are reasonably incidental thereto.

         The bank serving as the Administrative Agent hereunder shall have the
same rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent, and such bank
and its Affiliates may accept deposits from, lend money to and generally engage
in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

         The Administrative Agent shall not have any duties or obligations
except those expressly set forth herein. Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or
other implied duties, regardless of whether a Default has occurred and is
continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby that the Administrative Agent is
required to exercise in writing as directed by the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.02), and (c) except as expressly set
forth herein, the Administrative Agent shall not have any duty to disclose, and
shall not be liable for the failure to disclose, any information relating to the
Parent, the Borrower or any of the Subsidiaries that is communicated to or
obtained by the bank serving as Administrative Agent or any of its Affiliates in
any capacity. The Administrative Agent shall not be liable for any action taken
or not taken by it with the consent or at the request of the Required Lenders
(or such other number or percentage of the Lenders as shall be necessary under
the circumstances as provided in Section 9.02) or in the absence of its own
gross negligence or wilful misconduct. The Administrative Agent shall be deemed
not to have knowledge of any Default unless and until written notice thereof is
given to the Administrative Agent by the Borrower or a Lender, and the

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                                                                              57

Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in
connection with this Agreement, (ii) the contents of any certificate, report or
other document delivered hereunder or in connection herewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or
conditions set forth herein, (iv) the validity, enforceability, effectiveness or
genuineness of this Agreement or any other agreement, instrument or document, or
(v) the satisfaction of any condition set forth in Article IV or elsewhere
herein, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.

         The Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to be made by the proper Person, and shall not incur any liability for
relying thereon. The Administrative Agent may consult with legal counsel (who
may be counsel for the Borrower), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.

         The Administrative Agent may perform any and all of its duties and
exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and
powers through their respective Related Parties. The exculpatory provisions of
the preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of the Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

         Subject to the appointment and acceptance of a successor Administrative
Agent as provided in this paragraph, the Administrative Agent may resign at any
time by notifying the Lenders, the Issuing Bank and the Borrower. Upon any such
resignation, the Required Lenders shall have the right, in consultation with the
Borrower, to appoint a successor. If no successor shall have been so appointed
by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its resignation, then
the retiring Administrative Agent may, on behalf of the Lenders and the Issuing
Bank, appoint a successor Administrative Agent. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder. The fees
payable by the Borrower to a successor Administrative Agent shall be the same as
those payable to its predecessor unless otherwise agreed between the Borrower
and such successor. After the Administrative Agent's resignation hereunder, the
provisions of this Article and Section 9.03 shall continue in effect for the
benefit of such retiring Administrative Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while it was acting as Administrative Agent.

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                                                                              58

         Each Lender acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any related agreement or any document furnished hereunder or thereunder.

                                   ARTICLE IX

                                  Miscellaneous

         SECTION 9.01. Notices. (a) Except in the case of notices and other
communications expressly permitted to be given by telephone (and subject to
paragraph (b) below), all notices and other communications provided for herein
shall be in writing and shall be delivered by hand or overnight courier service,
mailed by certified or registered mail or sent by telecopy, as follows:

               (i) if to the Borrower, to it at Abercrombie & Fitch Management
         Co., 6301 Fitch Path, New Albany, Ohio 43054, Attention of Peter Hutt,
         Treasurer (Telecopy No. (614) 283-8686);

               (ii) if to the Administrative Agent or the Swingline Lender, to
         National City Bank, Agent Services Group, 629 Euclid Avenue, Second
         Floor, Cleveland, Ohio 44114, Attention of Ralph A. Kaparos, Senior
         Vice President (Telecopy No. 216 222-0103), with a copy to National
         City Bank, National Retailer Group, 155 East Broad Street, Columbus,
         Ohio 43215 (Telecopy No. 614 463-8572); and

               (iii) if to an Issuing Bank or any other Lender, to it at its
         address (or telecopy number) set forth in its Administrative
         Questionnaire.

         (b) Notices and other communications to the Lenders hereunder may be
delivered or furnished by electronic communications pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall not
apply to notices pursuant to Article II unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or the
Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may be
limited to particular notices or communications.

         (c) Any party hereto may change its address or telecopy number for
notices and other communications hereunder by notice to the other parties
hereto. All notices and other communications given to any party hereto in
accordance with the provisions of this Agreement shall be deemed to have been
given on the date of receipt.

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                                                                              59

         SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the
Administrative Agent, the Issuing Bank or any Lender in exercising any right or
power hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights
and remedies of the Administrative Agent, the Issuing Bank and the Lenders
hereunder are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provision of this Agreement or
consent to any departure by the Borrower therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this Section,
and then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given. Without limiting the generality of the
foregoing, the making of a Loan or issuance of a Letter of Credit shall not be
construed as a waiver of any Default, regardless of whether the Administrative
Agent, any Lender or the Issuing Bank may have had notice or knowledge of such
Default at the time.

         (b) Except as expressly provided in paragraph (c) of this Section,
neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to an agreement or agreements in writing entered into
by the Borrower and the Required Lenders or by the Borrower and the
Administrative Agent with the consent of the Required Lenders; provided that no
such agreement shall (i) increase the Commitment of any Lender without the
written consent of such Lender, (ii) reduce the principal amount of any Loan or
LC Disbursement or reduce the rate of interest thereon, or reduce any fees
payable hereunder, without the written consent of each Lender affected thereby,
(iii) postpone the scheduled date of payment of the principal amount of any Loan
or LC Disbursement, or any interest thereon, or any fees payable hereunder, or
reduce the amount of, waive or excuse any such payment, or postpone the
scheduled date of expiration of any Commitment, without the written consent of
each Lender affected thereby, (iv) change Section 2.17(b) or (c) in a manner
that would alter the pro rata sharing of payments required thereby, without the
written consent of each Lender, (v) release Parent or any Material Subsidiary
from its Guarantee under the Guarantee Agreement, without the written consent of
each Lender or (vi) change any of the provisions of this Section or the
definition of "Required Lenders" or any other provision hereof specifying the
number or percentage of Lenders required to waive, amend or modify any rights
hereunder or make any determination or grant any consent hereunder, without the
written consent of each Lender; provided further that no such agreement shall
amend, modify or otherwise affect the rights or duties of the Administrative
Agent, the Issuing Bank or the Swingline Lender hereunder without the prior
written consent of the Administrative Agent the Issuing Bank or the Swingline
Lender, as the case may be.

         (c) Notwithstanding anything in paragraph (b) of this Section to the
contrary, this Agreement and the other Loan Documents may be amended at any time
prior to the Maturity Date to increase the aggregate Commitments pursuant to
Section 2.19 of this Agreement.

         SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Borrower
shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates, including the reasonable fees, charges
and

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                                                                              60

disbursements of counsel for the Administrative Agent, in connection with the
syndication of the credit facilities provided for herein, the preparation,
execution and delivery and administration of this Agreement or any amendments,
modifications or waivers of the provisions hereof (whether or not the
transactions contemplated hereby or thereby shall be consummated) and (ii)
reasonable all out-of-pocket expenses incurred by the Administrative Agent, the
Issuing Bank or any Lender, including the fees, charges and disbursements of any
counsel for the Administrative Agent, the Issuing Bank or any Lender, in
connection with the enforcement or protection of its rights in connection with
this Agreement, including its rights under this Section, or in connection with
the Loans made or Letters of Credit issued hereunder, including all such
out-of-pocket expenses incurred during any workout or restructuring, or
negotiations in respect thereof, of such Loans or Letters of Credit and
documentary taxes associated with this Agreement.

         (b) The Borrower shall indemnify the Administrative Agent, the Issuing
Bank and each Lender, and each Related Party of any of the foregoing Persons
(each such Person being called an "Indemnitee") against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related expenses, including the reasonable fees, charges and disbursements of
any counsel for any Indemnitee, incurred by or asserted against any Indemnitee
arising out of, in connection with, or as a result of any actual or prospective
claim, litigation, investigation or proceedings relating to (i) the execution or
delivery of this Agreement or any agreement or instrument contemplated hereby,
the performance by the parties hereto of their respective obligations hereunder
or the consummation of the Transactions or any other transactions contemplated
hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom
(including any refusal by the Issuing Bank to honor a demand for payment under a
Letter of Credit if the documents presented in connection with such demand do
not strictly comply with the terms of such Letter of Credit), (iii) any actual
or alleged presence or release of Hazardous Materials on or from any property
owned or operated by the Borrower or any of its Subsidiaries, or any
Environmental Liability related in any way to the Borrower or any of its
Subsidiaries, whether based on contract, tort or any other theory and regardless
of whether any Indemnitee is a party thereto; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or wilful misconduct of such Indemnitee.

         (c) To the extent that the Borrower fails to pay any amount required to
be paid by it to the Administrative Agent, the Issuing Bank or the Swingline
Lender under paragraph (a) or (b) of this Section, each Lender severally agrees
to pay to the Administrative Agent, the Issuing Bank or the Swingline Lender, as
the case may be, such Lender's Applicable Percentage (determined as of the time
that the applicable unreimbursed expense or indemnity payment is sought) of such
unpaid amount; provided that the unreimbursed expense or indemnified loss,
claim, damage, liability or related expense, as the case may be, was incurred by
or asserted against the Administrative Agent, the Issuing Bank or the Swingline
Lender in its capacity as such.

         (d) To the extent permitted by applicable law, the Borrower shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability,

<PAGE>
                                                                              61

for special, indirect, consequential or punitive damages (as opposed to direct
or actual damages) arising out of, in connection with, or as a result of, this
Agreement or any agreement or instrument contemplated hereby, the Transactions,
any Loan or Letter of Credit or the use of the proceeds thereof.

         (e) All amounts due under this Section shall be payable promptly after
written demand therefor.

         SECTION 9.04. Successors and Assigns. (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby (including any
Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i)
the Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any
attempted assignment or transfer by the Borrower without such consent shall be
null and void) and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section. Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby (including any Affiliate of the Issuing Bank that issues any
Letter of Credit), Participants (to the extent provided in paragraph (c) of this
Section) and, to the extent expressly contemplated hereby, the Related Parties
of each of the Administrative Agent, the Issuing Bank and the Lenders) any legal
or equitable right, remedy or claim under or by reason of this Agreement.

         (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below,
any Lender may assign to one or more assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans at the time owing to it), with the prior written
consent (such consent not to be unreasonably withheld) of:

               (A) the Borrower, provided that no consent of the Borrower shall
         be required for an assignment to a Lender or an Affiliate of a Lender,
         or, if an Event of Default under clause (a), (b), (h) or (i) of Article
         VII has occurred and is continuing, any other assignee; and

               (B) the Administrative Agent (and, in the case of an assignment
         of all or a portion of any Lender's obligations in respect of its LC
         Exposure, the Issuing Bank), provided that no consent of the
         Administrative Agent or Issuing Bank, as the case may be, shall be
         required for an assignment to an assignee that is a Lender immediately
         prior to giving effect to such assignment.

         (ii) Assignments shall be subject to the following conditions:

               (A) except in the case of an assignment to a Lender, an Affiliate
         of a Lender or an Approved Fund or an assignment of the entire
         remaining amount of the assigning Lender's Commitment, the amount of
         the Commitment of the assigning Lender subject to each such assignment

<PAGE>
                                                                              62

         (determined as of the date the Assignment and Assumption with respect
         to such assignment is delivered to the Administrative Agent) shall not
         be less than $2,500,000 unless each of the Borrower and the
         Administrative Agent otherwise consent, provided that no such consent
         of the Borrower shall be required if an Event of Default under clause
         (a), (b), (h) or (i) of Article VII has occurred and is continuing;

               (B) each partial assignment shall be made as an assignment of a
         proportionate part of all the assigning Lender's rights and obligations
         under this Agreement;

               (C) the parties to each assignment shall execute and deliver to
         the Administrative Agent an Assignment and Assumption, together with a
         processing and recordation fee of $3,500; and

               (D) the assignee, if it shall not be a Lender, shall deliver to
         the Administrative Agent an Administrative Questionnaire

         (iii) Subject to acceptance and recording thereof pursuant to paragraph
(b)(iv) of this Section, from and after the effective date specified in each
Assignment and Assumption the assignee thereunder shall be a party hereto and,
to the extent of the interest assigned by such Assignment and Assumption, have
the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to
be a party hereto but shall continue to be entitled to the benefits of Sections
2.14, 2.15, 2.16 and 9.03). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this Section 9.04
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c) of
this Section.

         (iv) The Administrative Agent, acting for this purpose as an agent of
the Borrower, shall maintain at one of its offices a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitment of, and principal amount of the
Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof
from time to time, which register shall indicate that each lender is entitled to
interest paid with respect to such Loans and LC Disbursements (the "Register").
The entries in the Register shall, in the absence of manifest error, be
conclusive, and the Borrower, the Administrative Agent, the Issuing Bank and the
Lenders may treat each Person whose name is recorded in the Register pursuant to
the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for
inspection by the Borrower, the Issuing Bank and any Lender, at any reasonable
time and from time to time upon reasonable prior notice.

         (v) Upon its receipt of a duly completed Assignment and Assumption
executed by an assigning Lender and an assignee, the assignee's completed

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                                                                              63

Administrative Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Administrative Agent shall accept such Assignment and
Assumption and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.

         (c) (i) Any Lender may, without the consent of the Borrower, the
Administrative Agent, the Issuing Bank or the Swingline Lender, sell
participations to one or more banks or other entities (a "Participant") in all
or a portion of such Lender's rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans owing to it);
provided that (A) such Lender's obligations under this Agreement shall remain
unchanged, (B) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (C) the Borrower, the
Administrative Agent, the Issuing Bank and the other Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender's
rights and obligations under this Agreement. Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such
Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not, without
the consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 9.02(b) that affects such Participant.
Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.14, 2.15 and 2.16 to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section; provided that Section
2.18(b) shall apply to any Participant to such extent. To the extent permitted
by law, each Participant also shall be entitled to the benefits of Section 9.08
as though it were a Lender, provided such Participant agrees to be subject to
Section 2.17(c) as though it were a Lender.

         (ii) A Participant shall not be entitled to receive any greater payment
under Section 2.14 or 2.16 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless
the sale of the participation to such Participant is made with the Borrower's
prior written consent. A Participant that would be a Foreign Lender if it were a
Lender shall not be entitled to the benefits of Section 2.16 unless the Borrower
is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 2.16(e) as
though it were a Lender.

         (d) 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 without limitation 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.

<PAGE>
                                                                              64

         SECTION 9.05. Survival. All covenants, agreements, representations and
warranties made by the Borrower herein and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of this Agreement and the making of any Loans
and issuance of any Letters of Credit, regardless of any investigation made by
any such other party or on its behalf and notwithstanding that the
Administrative Agent, the Issuing Bank or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time any
credit is extended hereunder, and shall continue in full force and effect as
long as the principal of or any accrued interest on any Loan or any fee or any
other amount payable under this Agreement is outstanding and unpaid or any
Letter of Credit is outstanding and so long as the Commitments have not expired
or terminated. The provisions of Sections 2.14, 2.15, 2.16 and 9.03 and Article
VIII shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Letters of Credit and the
Commitments or the termination of this Agreement or any provision hereof.

         SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement
may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. This Agreement and any
separate letter agreements with respect to fees payable to the Administrative
Agent or the Issuing Bank constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when
the Administrative Agent shall have received counterparts hereof which, when
taken together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. Delivery of an executed counterpart
of a signature page of this Agreement by telecopy shall be effective as delivery
of a manually executed counterpart of this Agreement.

         SECTION 9.07. Severability. Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

         SECTION 9.08. Right of Setoff. If (i) an Event of Default shall have
occurred and be continuing and (ii) the Required Lenders shall have requested
the Administrative Agent to declare the Loans to be immediately due and payable
pursuant to Article VII, or the Loans have become immediately due and payable
without notice as provided in Article VII, each Lender and each of its
Affiliates is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other obligations at any time owing by such Lender or Affiliate to or for the
credit or

<PAGE>
                                                                              65

the account of the Borrower against any of and all the obligations of the
Borrower now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under this
Agreement and although such obligations may be unmatured. The rights of each
Lender under this Section are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.

         SECTION 9.09. Governing Law; Submission to Jurisdiction; Venue; Consent
to Service of Process. (a) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF OHIO, TO
THE FULLEST EXTENT PERMITTED BY LAW, THE BORROWER HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY JURISDICTION OTHER
THAN THE STATE OF OHIO GOVERNS THIS AGREEMENT OR ANY OF THE OTHER CREDIT
DOCUMENTS. Any legal action or proceeding with respect to this Agreement or any
other Loan Document may be brought in the Court of Common Pleas of Cuyahoga
County, Ohio, or of the United States for the Northern District of Ohio, and, by
execution and delivery of this Agreement, the Borrower hereby irrevocably
accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts. The Borrower hereby
further irrevocably consents to the service of process out of any of the
aforementioned courts in any such action or proceeding by the mailing of copies
thereof by registered or certified mail, postage prepaid, to such Borrower at
its address for notices pursuant to section 9.01, such service to become
effective 30 days after such mailing or at such earlier time as may be provided
under applicable law. Nothing herein shall affect the right of the
Administrative Agent or any Lender to serve process in any other manner
permitted by law or to commence legal proceedings or otherwise proceed against
any Borrower in any other jurisdiction.

         (b) The Borrower hereby irrevocably waives any objection which it may
now or hereafter have to the laying of venue of any of the aforesaid actions or
proceedings arising out of or in connection with this Agreement or any other
Loan Document brought in the courts referred to in paragraph (a) above and
hereby further irrevocably waives and agrees not to plead or claim in any such
court that any such action or proceeding brought in any such court has been
brought in an inconvenient forum. Each party to this Agreement irrevocably
consents to service of process in the manner provided for notices in Section
9.01. Nothing in this Agreement will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

         SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR

<PAGE>
                                                                              66

OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

         SECTION 9.11. Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

         SECTION 9.12. Confidentiality. Each of the Administrative Agent, the
Issuing Bank and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
its and its Affiliates' directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority, (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or the enforcement of rights hereunder,
(f) subject to an agreement containing provisions substantially the same as
those of this Section, to any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this
Agreement, (g) with the consent of the Borrower or (h) to the extent such
Information (i) becomes publicly available other than as a result of a breach of
this Section or (ii) becomes available to the Administrative Agent, the Issuing
Bank or any Lender on a nonconfidential basis from a source other than the
Borrower. For the purposes of this Section, "Information" means all information
received from the Borrower relating to the Borrower or its business, other than
any such information that is available to the Administrative Agent, the Issuing
Bank or any Lender on a nonconfidential basis prior to disclosure by the
Borrower. Any Person required to maintain the confidentiality of Information as
provided in this Section shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to
its own confidential information.

         SECTION 9.13. Interest Rate Limitation. Notwithstanding anything herein
to the contrary, if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which are treated as interest
on such Loan under applicable law (collectively the "Charges"), shall exceed the
maximum lawful rate (the "Maximum Rate") which may be contracted for, charged,
taken, received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan but were not payable as a result of the
operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased
(but not

<PAGE>
                                                                              67

above the Maximum Rate therefor) until such cumulated amount, together with
interest thereon at the Federal Funds Effective Rate to the date of repayment,
shall have been received by such Lender.

         SECTION 9.14. USA Patriot Act. Each Lender hereby notifies the Borrower
that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the "Act"), it is required to
obtain, verify and record information that identifies the Borrower, which
information includes the name and address of the Borrower and other information
that will allow such Lender to identify the Borrower in accordance with the Act.

<PAGE>
                                                                              68

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.

                                       ABERCROMBIE & FITCH MANAGEMENT CO.

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

                                       ABERCROMBIE & FITCH CO.,

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

                                       NATIONAL CITY BANK, individually and as
                                       Administrative Agent,

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

                                       JPMORGAN CHASE BANK, N.A., individually
                                       and as Syndication Agent,

                                            by
                                                /s/ Craig Transue
                                                --------------------------------
                                                Name: Craig Transue
                                                Title: Vice President

                                       BANK OF AMERICA, N.A.,

                                            by
                                                /s/ Amy Honey
                                                --------------------------------
                                                Name: Amy Honey
                                                Title: Vice President

<PAGE>
                                                                              69

                                       THE BANK OF NEW YORK,

                                            by
                                                /s/ Randolph E. J. Medrano
                                                --------------------------------
                                                Name: Randolph E. J. Medrano
                                                Title: Vice President

                                       FIFTH THIRD BANK (CENTRAL OHIO),

                                            by
                                                /s/ Kristie L. Nicolosi
                                                --------------------------------
                                                Name: Kristie L. Nicolosi
                                                Title: Assistant Vice President

                                       THE HUNTINGTON NATIONAL BANK,

                                            by
                                                /s/ Frederick G. Hadley
                                                --------------------------------
                                                Name: Frederick G. Hadley
                                                Title: Senior Vice President

                                       LASALLE BANK NATIONAL ASSOCIATION,

                                            by
                                                /s/ Robert M. Walker
                                                --------------------------------
                                                Name: Robert M. Walker
                                                Title: Vice President

                                       PNC BANK, NATIONAL ASSOCIATION,

                                            by
                                                /s/ Jeffrey L. Stein
                                                --------------------------------
                                                Name: Jeffrey L. Stein
                                                Title: Vice President

                                       THE NORINCHUKIN BANK,

                                            by
                                                /s/ Toshifumi Tsukitani
                                                --------------------------------
                                                Name: Toshifumi Tsukitani
                                                Title: General Manager

<PAGE>
                                                                              70

                                       U.S. BANK NATIONAL ASSOCIATION,

                                            by
                                                /s/ Jennifer Thurston
                                                --------------------------------
                                                Name: Jennifer Thurston
                                                Title: Assistant Vice President

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