Document:

<PAGE>
                                                                    Exhibit 4(d)

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

                                 LOAN AGREEMENT

                                    between

                          THE DIRECTOR OF DEVELOPMENT
                              OF THE STATE OF OHIO

                                      and

                                  LESCO, INC.

                                     Dated

                                     as of

                                January 28, 1988

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

<PAGE>

                                 LOAN AGREEMENT

     THIS LOAN AGREEMENT made and entered into as of December ____, 1987
between the Director of Development of the State of Ohio (the "Director"), and
Lesco, Inc., an Ohio corporation (the "Company"), under the circumstances
summarized in the following recitals (the capitalized terms used in the
recitals being used therein as defined in Article I hereof):

     A. Pursuant to the Act, the Director is authorized, among other things, to
make loans to assist in the financing of an Eligible Project.

     B. The Company has requested that the Director provide the financial
assistance for the Project hereinafter described.

     C. The Director has determined that the Project constitutes an Eligible
Project and that the financial assistance to be provided pursuant to this
Agreement is appropriate under the Act and will be in furtherance and in
implementation of the public policy set forth in the Act.

     D. The financial assistance to be provided pursuant to this Agreement has
been reviewed and approved by the Development Financing Advisory Board and the
Controlling Board, pursuant to the Act.

     NOW, THEREFORE, in consideration of the premises and the representations
and agreements hereinafter contained, the Director and the Company agree as
follows:

                                   ARTICLE I

                                  DEFINITIONS

     Section 1.1. USE OF DEFINED TERMS. In addition to the words and terms
elsewhere defined in this Agreement or by reference to the Security Document or
other instruments, the words and terms set forth in Section 1.2 hereof shall
have the meanings therein set forth unless the context or use expressly
indicates different meaning or intent. Such definitions shall be equally
applicable to both the singular and plural forms of any of the words and terms
therein defined.

     Section 1.2. DEFINITIONS. As used herein:

     "Act" means Chapter 166, Ohio Revised Code, as from time to time enacted
and amended.

     "Agreement" means this Loan Agreement, as from time to time amended or
supplemented.

     "Allowable Costs" means "allowable costs" of the Project within the meaning
of the Act.

<PAGE>

     "Application" means the Application of the Company submitted to the
Director requesting assistance under the Act.

     "City" means Martins Ferry, Belmont County, Ohio.

     "Closing Date" means January 28, 1988, the date of execution and delivery
of the Loan Documents.

     "Commitment" means the Commitment Letter between the Director and the
Company dated September 2, 1987.

     "Completion Date" means the date of completion of the Project, as
certified by the Company pursuant to Section 3.5 hereof.

     "Controlling Board" means the Controlling Board of the State.

     "Cost Certification" means a certification of the Company, as of a
specified date, setting forth in reasonable detail the costs incurred and, if
appropriate, to be incurred, by the Company in completing the provision of the
Project, including a detail by category of all Allowable Costs.

     "Development Financing Advisory Board" means the Development Financing
Advisory Board of the State.

     "Disbursement" means a disbursement by the Director of a portion of the
Loan to provide funds for the payment of Allowable Costs.

     "Disbursement Date" means such date on which the Director shall have made
a Disbursement to the Company, which shall be not later than ten (10) days
after the Company shall have satisfied all conditions to disbursement set forth
in Section 3.6 and 3.8 of this Loan Agreement, subject, however, in each
instance to the Director's sole discretion with respect to the amount, if any,
of such Disbursement.

     "Eligible Project" means an "eligible project" within the meaning of the
Act.

     "Escrow Agent" means the Title Company, in its capacity as Escrow Agent
under the Escrow Agreement, if applicable.

     "Escrow Agreement" means the Escrow Agreement of even date herewith among
the Company, the Director and the Escrow Agent, if applicable.

     "Event of Default" means any of the events described as an event of
default in Section 5.1 hereof.

     "Final Cost Certification" means the cost certification dated as of the
Completion Date.

     "Final Disbursement Date" means the latest date on which a Disbursement may
be made by the Director to the Company, which date

                                      -2-
<PAGE>

shall be August 1, 1989, or such subsequent date as may be established by the
Director in writing in accordance with Section 3.7 hereof for the disbursement
of the Loan.

     "Governing Instruments" means the articles of incorporation and code of
regulations (or by-laws) of the Company.

     "Governmental Authority" means, collectively, the State, any political
subdivision thereof, any municipality, and any agency, department, commission,
board or bureau of any of the foregoing having jurisdiction over the Project.

     "Initial Cost Certification" means the cost certification dated as of the
Closing Date.

     "Lender" means Irving Trust Company.

     "Lender Loan" means the loan in the principal amount of Five Million Eight
Hundred Seventy-Five Thousand Dollars ($5,875,000) made by the Lender to the
Company pursuant to the Lender's commitment therefor.

     "Lender Loan Documents" means all documents evidencing or securing the
Lender Loan.

     "Loan" means the loan by the Director to the Company in the total sum of
the Loan Amount, to be disbursed pursuant to Section 3.8 hereof.

     "Loan Amount" means the lesser of (i) One Million Dollars ($1,000,000) or
(ii) seventeen percent (17%) of the Allowable Costs of the Project, as
determined by the Director in his sole discretion pursuant to this Agreement.

     "Loan Approval Documents" means, with respect to the Loan, the
Recommendation of the Director to the Development Financing Advisory Board
dated July 9, 1987, the Resolution of the Development Financing Advisory Board
dated July 9, 1987, the Approval of the Controlling Board dated August 10, 1987
and the Commitment.

     "Loan Documents" means all documents and instruments delivered to or
required by the Director to evidence or secure the Loan, including this
Agreement, as required by the Commitment and this Agreement.

     "Note" means the promissory note, in the form attached hereto as Exhibit
A, evidencing the obligation of the Company to repay the Loan.

     "Notice Address" means:

     (a) As to the Director:                    Department of Development
                                                P.O. Box 1001
                                                Columbus, OH 43266-1001
                                                Attn: Director

                                      -3-
<PAGE>

                and
                                         Calfee, Halter & Griswold
                                         1800 Society Building
                                         Cleveland, OH 44114
                                         Attn: Robert A. Richardson

     (b) As to the Company:              Lesco, Inc.
                                         20005 Lake Road
                                         Rocky River, Ohio 44116
                                         Attn: Daniel G. Dunstam

                                                 and

                                         Arter & Hadden
                                         1100 Huntington Building
                                         Cleveland, Ohio 44115
                                         Attn: John W. Waldeck, Jr.

or such additional or different address, notice of which is given under Section
6.2 hereof.

     "Plans and Specifications" means the plans and specifications or other
appropriate documents describing the Project prepared by or at the direction of
the Company.

     "Project" means the Project Site, Project Equipment and the Project
Facilities, together constituting an Eligible Project.

     "Project Equipment" means the equipment, machinery and other property
described in Exhibit D attached hereto.

     "Project Facilities" means the buildings, structures, additions and
improvements described in Exhibit B attached hereto and more particularly
described in the Plans and Specifications.

     "Project Purposes" means the acquisition of the Project Site, the
acquisition and rehabilitation of the Project Facilities and the acquisition
and rehabilitation of the Project Equipment for use in the manufacture of
products used in the lawn care industry, including but not limited to
fertilizers, herbicides and mowers.

     "Project Site" means the real estate described in Exhibit C attached
hereto.

     "Provision" means, as applicable, the acquiring, constructing,
reconstructing, rehabilitating, renovating, enlarging, improving, equiping or
furnishing of the Project.

     "Security Document" means, collectively, the "Open-End Shared Mortgage and
Security Agreement," and "UCC Financing Statements" of even date herewith, as
from time to time amended or supplemented.

     "State" means the State of Ohio.

                                      -4-
<PAGE>
          "Title Company" means a title insurance company selected by the
Company which is acceptable to the Director.

          Section 1.3. Certain Words and References. Any reference herein to the
Director shall include those succeeding to his functions, duties or
responsibilities pursuant to or by operation of law or lawfully performing such
functions. Any reference to a section or provision of the Constitution of the
State or to the Act or to a section, provision or chapter of the Ohio Revised
Code shall include such section, provision or chapter as from time to time
amended, modified, revised, supplemented or superseded.

          The terms "hereof," "hereby," "herein," "hereto," "hereunder" and
similar terms refer to this Agreement; and the term "heretofore" means before,
and the term "hereafter" means after, the Closing Date.

                                      -5-
<PAGE>
                                   ARTICLE II

                       DETERMINATIONS AND REPRESENTATIONS

          Section 2.1. Determinations of the Director. Pursuant to the Act and
on the basis of the representations and other information provided by the
Company, the Director has heretofore made certain determinations, as set forth
in the Loan Approval Documents, which are hereby confirmed, and the Director
hereby determines that the financial assistance to be provided by the State
pursuant to this Agreement will conform to the requirements of the Act,
including Section 166.07 thereof, and will further and implement the purposes
of the Act by creating new jobs or preserving existing jobs and employment
opportunities and improving the economic welfare of the people of the State.

          Section 2.2. Representations of the Company. The Company hereby
represents and warrants that:

          (a)  It is a corporation for profit duly organized, validly existing
               and in good standing under the laws of the State.

          (b)  It has full power and authority to execute, deliver and perform
               the Loan Documents and the Lender Loan Documents, and to enter
               into and carry out the transactions contemplated thereby. Such
               execution, delivery and performance do not, and will not,
               violate any provision of law applicable to the Company or the
               Governing Instruments of the Company and do not, and will not,
               conflict with or result in a default under any agreement or
               instrument to which the Company is a party or by which it or any
               of its property or assets is or may be bound. The Loan Documents
               and the Lender Loan Documents have, by proper action, been duly
               authorized, executed and delivered and all necessary actions
               have been taken to constitute the Loan Documents and the Lender
               Loan Documents legal, valid and binding obligations of the
               Company.

          (c)  The provision of financial assistance pursuant to the Loan
               Approval Documents and this Agreement induced the Company to
               provide the Project, thereby creating new jobs or preserving
               existing jobs and employment opportunities and improving the
               economic welfare of the people of the State.

          (d)  The Provision of the Project will be completed and the Project
               will be operated and maintained in such manner as to conform
               with all applicable zoning, planning, building, environmental
               and other applicable governmental regulations imposed by
               Governmental Authority and as to be consistent with the purposes
               of the Act.

                                      -6-
<PAGE>
          (e)  It presently intends that the Project will be used and operated
               in a manner consistent with the Project Purposes until the date
               on which the Loan has been fully repaid, and the Company knows of
               no reason why the Project will not be so operated.

          (f)  There are no actions, suits or proceedings pending or threatened
               against or affecting the Company or the Project which, if
               adversely determined, would individually or in the aggregate
               materially impair the ability of the Company to perform any of
               its obligations under the Loan Documents or the Lender Loan
               Documents or materially adversely affect the financial condition
               of the Company.

          (g)  The Company is not in default under any of the Loan Documents or
               the Lender Loan Documents, or in the payment of any indebtedness
               for borrowed money or under any agreement or instrument
               evidencing any such indebtedness, and no event has occurred
               which by notice, the passage of time or otherwise would
               constitute any such event of default.

          (h)  The Project Site is zoned by the City under a zoning ordinance
               which permits the Provision of the Project thereon in accordance
               with the Plans and Specifications; and all utilities, including
               water, storm and sanitary sewer, gas, electric and telephone,
               and rights of access to public ways shall be available or will
               be provided to the Project Site in sufficient locations and
               capacities to meet the requirements of operating the Project and
               of any applicable Governmental Authority.

          (i)  The Company has made no contract or arrangement of any kind,
               other than the Loan Documents and the Lender Loan Documents,
               which has given rise to or the performance of which by the other
               party thereto would give rise to a lien or claim of lien on the
               Project or other collateral covered by the Loan Documents or the
               Lender Loan Documents, except for a mortgage to the City of
               Martins Ferry, Ohio and Belmont County with respect to a loan of
               Eighty Thousand Dollars ($80,000) in connection with the Project.

          (j)  No representation or warranty of the Company contained in any of
               the Loan Approval Documents, Loan Documents or Lender Loan
               Documents, and no statement contained in any certificate,
               schedule, list, financial statement or other instrument
               furnished to the Director of the Lender by or on behalf of the
               Company (including, without limitation, the Application)
               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.

                                      -7-

<PAGE>
          (k)  The financial statements of the Company heretofore delivered to
               the Director are true and correct, in all respects, have been
               prepared in accordance with generally accepted accounting
               principles consistently applied, and fairly present the
               financial condition and the results of operation of the Company
               as of the dates thereof. No materially adverse change has
               occurred in the financial condition of the Company reflected
               therein since the respective dates thereof.

          (l)  All proceeds of the Loan shall be used for the payment of
               Allowable Costs relating to Provision of the Project. No part of
               any such proceeds shall be knowingly paid to or retained by the
               Company or any partner, officer, shareholder, director or
               employee of the Company as a fee, kick-back or consideration of
               any type. The Company has no identity of interest with the
               general contractor or any architect, subcontractor, laborer or
               materialman performing work or services or supplying materials
               in connection with the Provision of the Project; provided
               however that certain employees of the Company are anticipated to
               perform services in connection with the Provision of the Project.

          (m)  The Company has a good and marketable title to a fee simple
               interest in the Project Site and Project Facilities subject in
               all cases to no lien, charge, easement, condition, restriction
               or encumbrance except as created by the Loan Documents and the
               Lender Loan Documents, or shown as Permitted Encumbrances under
               the Parity Open-End Mortgage and Security Agreement.

          (n)  Except as disclosed (i) elsewhere in this Agreement and the Loan
               Documents, and (ii) in the title policy pursuant to Section
               3.6(d) hereof, and except as created by the Loan Documents and
               the Lender Loan Documents, and except for utility easements,
               there are no other easements or agreements, including, without
               limitation, parking agreements, encroachment agreements, access
               easements, service agreements and other similar agreements
               affecting the Project.

          (o)  To the best of our knowledge of the Company, the Project Site
               has never contained and does not currently contain nor is it
               contaminated by, any hazardous or toxic waste materials in
               violation of any applicable environmental laws or regulations,
               including, but not limited to Section 103 of the Comprehensive
               Environmental Response, Compensation and Liability Act, 42 USG
               9601 et seq. and Chapter 375 of the Ohio Revised Code; and to
               the best of our knowledge of the Company, no "clean-up" of the
               Project has occurred pursuant to any applicable federal or state
               environmental laws or regulations which would

                                      -8-
<PAGE>
               give rise to (i) liability on the part of any person, entity or
               association to reimburse any governmental authority for the
               costs of any such "clean-up" or (ii) a lien or encumbrance of
               the Project Site.

                                  ARTICLE III

          LOAN; PROVISION OF PROJECT; CONDITIONS TO DISBURSEMENT DATE

          Section 3.1. Loan and Repayment. On the terms and conditions of this
Agreement and the Commitment, the Director shall lend to the Company the Loan
Amount to assist in the financing of the Project. The Loan shall be evidenced
by this Agreement and the Note and secured by the Security Document and other
Loan Documents, as applicable. Those instruments shall be executed and
delivered by the Company to the Director on the Closing Date, concurrently with
the execution and delivery of this Agreement and the delivery of all other
documents and the satisfaction of all other closing conditions required by this
Agreement and the Commitment. The Security Document and other Loan Documents
evidencing or securing the Loan which are to be recorded shall be deposited with
the Escrow Agent pursuant to the Escrow Agreement for filing and recording in
connection with the disbursement of the Loan, or may be filed for record prior
to disbursement if deemed appropriate by the Director. The Loan shall be
disbursed on the Disbursement Date pursuant to Section 3.8 hereof upon the
satisfaction of the conditions set forth in Section 3.6 hereof. The Loan shall
be disbursed only from, and only to the extent that on the Disbursement Date
funds not heretofore committed are available to make the Loan from moneys in
the "Facilities Establishment Fund" created by the Act.

          The terms of repayment of the Loan shall be as set forth in the Note
and the Company shall make all payments required to be made under the Note as
and when due.

          Section 3.2. Provision of Project. The Company (a) has commenced or
shall promptly hereafter commence the Provision of the Project; (b) shall pay
all expenses incurred in such Provision from funds made available therefor in
accordance with this Agreement or otherwise; and (c) shall demand, sue for,
levy and recover all sums of money and debts which may be due and payable under
the terms of any contract, order, receipt, guaranty, warranty, writing or
instruction in connection with the Provision of the Project and will enforce
the terms of any contract, agreement, obligation, bond or other performance
security with respect thereto. The Company confirms its agreement in the
Commitment that all wages paid to laborers and mechanics employed on the
Project shall be paid at not less than the prevailing rates of wages for
laborers and mechanics for the class of work called for by the Project, which
wages shall be determined in accordance with the requirements of Chapter 4115,
Ohio Revised Code, for determination of prevailing wage rates; provided that if
the Company undertakes, as part of the Project work to be performed by its
regular bargaining unit employees

                                      -9-
<PAGE>
who are covered under a collective bargaining agreement which was in existence
prior to the date of the Commitment, the rate of pay provided under the
applicable collective bargaining agreement may be paid to such employees.

          Section 3.3. Plans and Specifications; Inspections. At his option,
the Director may retain, at the Company's expense, an architect, engineer,
appraiser or other consultant for the purpose of approving the Plans and
Specifications, verifying costs and performing inspections as Provision of the
Project progresses. Such inspections or approvals of Plans and Specifications
or the Project Facilities shall impose no responsibility or liability of any
nature upon the Director, the State, their agents, representatives or designees
nor, without limitation, carry any warranty or representation as to the
adequacy or safety of the structures or any of their component parts or any
other physical condition or feature pertaining to the Project Facilities. The
Company shall, at the request of the Director, make periodic reports
(including, if required, submission of updated Cost Certifications) to the
Director concerning the status of completion and the expenditure of costs in
respect thereof.

          The Company may revise the Plans and Specifications from time to
time; provided that no material revision shall be made (a) which would change
the Project Purposes to purposes other than those permitted by the Act; (b)
without obtaining, to the extent required by law, the approval of any
applicable Governmental Authority; and (c) without the prior written approval
of the Director if such revision would change the amounts set forth in the most
recently furnished Cost Certification. In any event, all revisions to the Plans
and Specifications shall be promptly filed with the Director.

          Section 3.4. Company Required to Pay Costs in Event Proceeds
Insufficient. In the event that the proceeds of the Loan and the Lender Loan
are not sufficient to pay all costs of the Project, the Company will,
nonetheless and irrespective of the cause of such deficiency, complete the
Project in accordance with the Plans and Specifications and pay all costs of
such completion in full from its own funds.

          Section 3.5. Completion Date. The Completion Date shall occur not
later than August 1, 1989 and shall be evidenced to the Director by (a) a
certificate of the Company stating the Completion Date, that all licenses,
permits and approvals, including a certificate of occupancy, required by any
Governmental Authority have been procured and/or obtained, and (b) that all
improvements and additions reflected in the Plans and Specifications have been
made, that all costs of providing the Project have been paid and the date as of
which operation of the Project shall commence, which certificate shall be
accompanied by the Final Cost Certification, and if Provision of the Project
entailed construction, by completed Forms AIA-G702 and G703.

          Section 3.6. Conditions to Disbursement. The disbursement of the Loan
shall be made on or before the Disbursement Date, provided

                                      -10-
<PAGE>
the Director shall have received the following on or before the initial
Disbursement Date or on such later date as is hereinafter specifically noted:

          (a)  the executed Note;

          (b)  the items required by Section 3.5 hereof (except that the items
               required by 3.5(b) shall be delivered on or before the Final
               Disbursement Date);

          (c)  prior to each disbursement, an affidavit pursuant to Section
               4115.07, Ohio Revised Code, of each contractor and subcontractor
               which performed work in connection with the Project, prior to
               such Disbursement, certifying as to full compliance with Chapter
               4115, Ohio Revised Code;

          (d)  a paid ALTA loan policy of title insurance issued by the Title
               Company, in the Loan Amount, insuring the Director's interest
               created by the Security Document at the level of priority therein
               stated to be a valid lien on the Project Site (including all
               appurtenances thereto) and the Project Facilities free and clear
               of all defects and encumbrances except as created by the Loan
               Documents and the Lender Loan Documents or consisting of
               Permitted Encumbrances as set forth in the Security Document,
               with such endorsements as the Director may require, which policy
               shall contain:

               (i)    affirmative insurance coverage against mechanic's liens;

               (ii)   no survey exception not theretofore approved by the
                      Director and his legal counsel;

               (iii)  affirmative insurance coverage regarding access,
                      compliance with respect to restrictive covenants and any
                      other matters to which the Director may have objection or
                      require affirmative insurance coverage; and

               (iv)   the results of a UCC search and federal tax lien search in
                      the county(s) wherein the Project is located and the
                      Company has its principal place of business;

               (v)    an endorsement dated the date of each Disbursement
                      updating the policy to the date of such Disbursement;

          (e)  a current (dated not more than sixty (60) days prior to the
               Disbursement Date) as-built survey of the Project Site, prepared
               by a licensed surveyor acceptable to the Director, certified to
               the Director and the Title

                                      -11-

<PAGE>
               Company, pursuant to certificate of survey acceptable to the
               Director, showing:

               (i)    the location of the perimeter of the Project Site by
                      courses and distances with all reference points shown or
                      referred to in the aforesaid title report;

               (ii)   all easements (including those easements whose existence
                      is disclosed by physical inspection of the Project Site),
                      rights-of-way and the location of all utility lines
                      serving the Project Site;

               (iii)  the established building lines;

               (iv)   the full legal description of the Project Site (conforming
                      to the legal description subject to the aforesaid title
                      policy) and a certification as to the acreage and square
                      footage thereof;

               (v)    the highway and street right-of-way lines abutting the
                      Project Site and the width thereof;

               (vi)   encroachments upon the Project Site and the extent thereof
                      in feet and inches;

               (vii)  the Project Facilities and the relation thereof by
                      distances to the perimeter of the Project Site, the
                      established building lines and the street lines; and

               (viii) if the Project Site is described as being a filed map, a
                      legend relating the survey to said map;

          (f)  certification prior to each Disbursement by the Company that its
               representations and warranties made in the Loan Approval
               Documents or Loan Documents remain true, accurate and complete as
               of the Disbursement Date and no default or event which, by
               notice, the passage of time or otherwise, would constitute a
               default, exists under the Loan Documents or the Lender Loan
               Documents;

          (g)  certificate of occupancy;

          (h)  evidence of the liability and property insurance required by the
               Security Document;

          (i)  evidence of zoning compliance;

          (j)  evidence of availability and adequacy of utilities;

          (k)  copies of all building permits;

          (l)  determination of prevailing wage by the Department of Industrial
               Relations and, prior to each Disbursement,

                                      -12-
<PAGE>
               certifications concerning payment of prevailing wages to the
               date thereof;

          (m)  Cost Certifications and a final Cost Certification prior to Final
               Disbursement;

          (n)  the duly executed Security Document;

          (o)  the Plans and Specifications;

          (p)  the Company's Certificate of Corporate Good Standing issued by
               the Secretary of State of the State, dated within ten (10) days
               of the Disbursement Date;

          (q)  certified copies of the resolutions of the Company authorizing
               execution and delivery of all documents with respect to the Loan
               and the Lender Loan;

          (r)  financing statements to evidence and perfect the security
               interests created by the Security Document;

          (s)  certificate of incumbency as to the Company;

          (t)  copies, certified by the Company to be true, correct and
               complete, of the following:

               (i)   the Governing Instruments of the Company; and

               (ii)  the Lender Loan Documents;

          (u)  an opinion of the Company's counsel, which sets forth the
               following:

               (i)    that the Company is a corporation organized and validly
                      existing under the laws of, and in good standing with, the
                      State;

               (ii)   that the Company has power and authority to own its
                      properties and conduct its business;

               (iii)  that the execution of the Loan Documents by the Company
                      does not conflict with the Governing Instruments of the
                      Company;

               (iv)   that the Agreement, the Loan Documents, the Note, Security
                      Document and the Lender Loan Documents have been duly
                      authorized, executed and delivered by the Company and are
                      valid and binding instruments, enforceable against the
                      Company in accordance with their respective terms except
                      as such enforcement may be limited by bankruptcy,
                      insolvency or other laws or equitable principles affecting
                      the enforcement of creditor's rights generally; and that
                      the

                                      -13-
<PAGE>
                      Company has taken all actions necessary to authorize the
                      execution and delivery of the same;

               (v)    that there are no approvals or authorizations of any
                      Governmental Authority necessary or required for the
                      sale, at foreclosure, of the project, including without
                      limitation, subdivision approval, and the Project may be
                      sold separately from any other property  owned by the
                      Company;

               (vi)   to the best of our knowledge and belief after due
                      investigation there are no actions, suits or proceedings,
                      at law or in equity, or before or by any court, public
                      board or body, pending or threatened or affecting the
                      Company or the Project which, if adversely determined,
                      would individually or in the aggregate materially impair
                      the ability of the Company to perform any of its
                      obligations under the Loan Documents or the Lender Loan
                      Documents;

               (vii)  that the use and operation of the Project for its
                      intended purposes comply with all applicable zoning
                      ordinances, regulations and environmental protection laws
                      affecting the Project, and all requirements for such use
                      and operation have been satisfied;

               (viii) to the best of our knowledge and belief the execution of
                      the Loan Documents and the consummation of the
                      transactions contemplated in this Agreement will not
                      result in a breach or violation or default under any
                      judgment, decree, loan, mortgage, agreement, indenture or
                      other instrument applicable to the Company;

               (ix)   to the best of our knowledge and belief, the Company is
                      not in default under any contract, agreement or other
                      instrument by which it is bound, in the payment of any
                      monetary obligation, or with respect to any judgment,
                      order, injunction or regulation of any court or
                      governmental authority, and there exists no condition or
                      event which after notice or lapse of time or both would
                      constitute any such default.

          (v)  evidence satisfactory to the Director that the Project is not
               located in a flood-prone area as defined by the United States
               Department of Housing and Urban Development in the Flood
               Disaster Protection Act of 1973, as amended, or if the Project
               is located in a flood-prone area, that appropriate flood
               insurance or other satisfactory measures have been taken to
               protect the Project from flood damage.

                                      -14-
<PAGE>
          (w)  all licenses and permits required by Governmental Authority;

          (x)  certified list of all contractors and subcontractors (names and
               addresses) who worked on the Project, complete to the date of
               each Disbursement;

          (y)  such other certifications, documents or opinions as the Director
               may reasonably request.

          Section 3.7. Postponement of Final Disbursement Date. At the written
request of the Company setting forth the reasons therefor and received at least
twenty (20) days prior to the Final Disbursement Date, the Director may, but
shall be under no obligation to, postpone the Final Disbursement Date to a
later date. No such postponement will be deemed to have been granted unless
stated in a writing signed by the Director specifying the length of the
extension given. If for any reason the Loan shall not have been disbursed on or
before the Final Disbursement Date or such subsequent date as the Director
shall have specified in writing pursuant to the preceding sentence, the
Director shall have no obligation to make further Disbursements. For purposes of
this Section, time is of the essence.

          Section 3.8. Disbursement of Loan. Not less than ten days prior to
each Disbursement requested by the Company, the Company shall supply the
Director with a written request executed by the Company for a Disbursement,
which request shall set forth the amount sought, shall constitute a covenant
and affirmation of the Company that the warranties and conditions of this
Agreement are being complied with, and that no Event of Default has occurred as
of the Disbursement Date. Each request for a Disbursement shall be accompanied
by a Cost Certification and, in addition, the Director shall receive an
endorsement to the ALTA loan policy of title insurance described in Section
3.6(d) updating said policy to the Disbursement Date, without additional
exceptions or objections except taxes and assessments not currently due and
payable and such other matters as to which the Director may have consented.
Provided the Director is satisfied that the Company has complied with the
foregoing conditions, the Director shall make the Disbursement not to exceed
the Loan Amount by delivering funds directly to the Company or at the direction
of the Company, as determined by the Director in his sole discretion based on
the Cost Certification in accordance with and subject to the following
conditions:

          (a)  The Director shall make no more than four (4) Disbursements with
               respect to the Project, the last of which shall occur not later
               than the Final Disbursement Date, and each Disbursement Date, at
               the Director's option, shall occur on the first day of the
               calendar month following the Company's request for Disbursement
               submitted to the Director;

          (b)  The amount of each Disbursement shall be equal to the lesser of:
               (i) with respect to the initial Disbursement;

                                      -15-
<PAGE>
               the Loan Amount, or (ii) with respect to Disbursements subsequent
               to the initial Disbursement, the Loan Amount less the aggregate
               amount of all prior Disbursements, or (iii) 13.33% of Allowable
               Costs as disclosed by the Cost Certification, but in no event
               shall the Director be obligated to honor a request for
               Disbursement unless the amount thereof is equal to or exceeds
               Two Hundred Fifty Thousand Dollars ($250,000);

          (c)  The Director shall cause the Note to be endorsed on each
               Disbursement Date in the amount of the Disbursement, and
               interest shall accrue thereon commencing as of the Disbursement
               Date.

          Section 3.9. Payment of Costs; Indemnification. The Company shall pay
all costs incident to the Loan, including recording and title fees, title
examination and insurance fees and escrow fees. The Company shall defend,
indemnify and hold the Director and any officials of the State harmless against
any and all loss, cost, expense, claims or actions arising out of or connected
with the execution and delivery of this Agreement or any other Loan Documents
and the preparation of documents relating to the Disbursement of the Loan,
including all aforementioned costs and expenses, regardless of whether or not
the Disbursement of the Loan shall actually occur. The provisions of this
Section will survive the termination of this Agreement.

                                   ARTICLE IV

                      ADDITIONAL COVENANTS AND AGREEMENTS

          Section 4.1. Information Concerning Operations. At the request of the
Director and, in any event, within seventy-five (75) days after the last day of
each fiscal year of the Company beginning with the fiscal year in which the
Completion Date occurs, the Company shall furnish to the Director a report on
Project operations setting forth the total number of employees then employed on
the Project and such other employment, economic and statistical data concerning
the Project as may reasonably be requested by the Director.

          Section 4.2. Affirmative Covenants of the Company. Throughout the
term of this Agreement, the Company shall:

          (a)  Taxes and Assessments. Pay and discharge promptly, or cause to
               be paid and discharged promptly, when due and payable, all taxes,
               assessments and governmental charges or levies imposed upon it,
               its income or any of its property, or upon any part thereof, as
               well as all claims of any kind (including claims for labor,
               materials and supplies) which, if unpaid, might by law become a
               lien or charge upon its property.

                                      -16-
<PAGE>
               Notwithstanding the preceding paragraph, the Company may, at its
               expense and after prior notice to the Director, by appropriate
               proceedings diligently prosecuted, contest in good faith the
               validity or amount of any such taxes, assessments, governmental
               charges, levies and claims and during the period of contest, and
               after notice to the Director, may permit the items so contested
               to remain unpaid. However, if at any time the Director shall
               notify the Company that, in the opinion of legal counsel
               satisfactory to the Director, by nonpayment of any such items the
               lien created by the Security Document as to any part of the
               Project will be materially affected or the Project or any part
               thereof will be subject to imminent loss or forfeiture, the
               Mortgagor shall promptly pay such taxes, assessments, charges,
               levies or claims.

          (b)  Maintain Existence. Do or cause to be done all things necessary
               to preserve and keep in full force and effect its existence and
               its material rights and franchises.

          (c)  Maintain Property. Maintain and keep its property in good
               repair, working order and condition, and from time to time make
               all repairs, renewals and replacements which, in the opinion of
               the Company, are necessary and proper so that the business
               carried on in connection therewith may be properly and
               advantageously conducted at all times; provided, however, that
               nothing in this subsection (c) shall prevent the Company from
               selling or otherwise disposing of any property whenever, in the
               good faith judgment of the Company, such property is obsolete,
               worn out, without economic value or unnecessary for the conduct
               of the business of the Company.

          (d)  Maintain Insurance. Keep all of its insurable property insured
               against loss or damage by fire and other risks, maintain public
               liability insurance against claims for personal injury, death,
               or property damage suffered by others upon, in or about any
               premises occupied by the Company; and maintain all such worker's
               compensation or similar insurance as may be required under the
               laws of any state or jurisdiction in which it may be engaged in
               business.  All insurance for which provision has been made in
               this subsection (d) shall be maintained against such risks and
               in at least such amounts as such insurance is usually carried by
               persons engaged in the same or similar businesses, and all
               insurance herein provided for shall be effected and maintained
               in force under a policy or policies issued by insurers of
               recognized responsibility, except that it may effect worker's
               compensation or similar insurance in respect of operations in
               any state or other jurisdiction either through an insurance fund
               operated by such state or other jurisdiction or by causing to be
               maintained a system or systems of

                                      -17-

<PAGE>
               self-insurance which is in accordance with applicable law.

          (e)  Furnish Information. Furnish to the Director:

               (i)    Quarterly Reports. Within sixty (60) days after the end of
                      each quarterly period of each fiscal year of the Company,
                      the balance sheet of the Company as at the end of such
                      quarterly period, together with related statements of
                      income and retained earnings (or accumulated deficit) and
                      changes in financial position for such quarterly period,
                      setting forth in comparative form the corresponding
                      figures as at the end of or for the corresponding quarter
                      of the previous fiscal year, all in reasonable detail,
                      prepared in accordance with generally accepted accounting
                      principles applied on a consistent basis, subject to usual
                      year-end audit adjustments.

               (ii)   Annual Reports. Within one hundred twenty (120) days
                      after the last day of each fiscal year of the Company, a
                      copy of its audit report containing a balance sheet of
                      the Company as at the end of such fiscal year, together
                      with related statements of income and retained earnings
                      (or accumulated deficit) and changes in financial
                      position for such fiscal year, setting forth in
                      comparative form the corresponding figures as at the end
                      of or for the previous fiscal year, all in reasonable
                      detail and all examined by and accompanied by a review
                      letter or opinion of its independent certified public
                      accountants to the effect that such financial statements
                      were prepared in accordance with the generally accepted
                      accounting principles consistently applied, and present
                      fairly the Company's financial position at the close of
                      such periods and the results of its operations for such
                      periods.

               (iii)  Certificate; No Default. With the financial reports
                      required to be furnished under this Section, a certificate
                      of the Company's chief executive officer or chief
                      financial officer stating that (a) no Event of Default has
                      occurred and is continuing and no event or circumstance
                      which would constitute an Event of Default, but for the
                      requirement that notice be given or time elapse or both,
                      has occurred and is continuing, or, if such an Event of
                      Default or such event or circumstance has occurred and is
                      continuing, a statement as to the nature thereof and the
                      action which the Company proposes to take with respect
                      thereto, and that (b) no action, suit or proceeding by it
                      or against it at law or in equity, or before any
                      governmental instrumentality or

                                      -18-
<PAGE>
                      agency, is pending or threatened, which, if adversely
                      determined, would materially impair the right or ability
                      of the Company to carry on the business which is
                      contemplated in connection with the Project or would
                      materially impair the right or ability of the Company to
                      perform the transactions contemplated by this Agreement
                      or the other Loan Documents or would materially and
                      adversely affect its business, operations, properties,
                      assets or condition, all as of the date of such
                      certificate, except as disclosed in such certificate.

               (iv)   Other Information. Such other information respecting the
                      business, properties or the condition or operations,
                      financial or otherwise, of the Company as the Director
                      may reasonably request.

          (f)  Deliver Notice. Forthwith upon learning of any of the following,
               deliver written notice thereof to the Director, describing the
               same and the steps being taken by the Company with respect
               thereto:

               (i)    the occurrence of an Event of Default or an event or
                      circumstance which would constitute an Event of Default,
                      but for the requirement that notice be given or time
                      elapse or both, or

               (ii)   any action, suit or proceeding by it or against it at law
                      or in equity, or before any governmental instrumentality
                      or agency, instituted or threatened which, if adversely
                      determined, would materially impair the right or ability
                      of the Company to carry on the business which is
                      contemplated in connection with the Project or would
                      materially impair the right or ability of the Company to
                      perform the transactions contemplated by the Loan
                      Documents, or would materially and adversely affect its
                      business, operations, properties, assets or condition, or

               (iii)  the occurrence of a Reportable Event, as defined in the
                      Employee Retirement Income Security Act of 1974, as
                      amended ("ERISA"), under, or the institution of steps by
                      the Company to withdraw from, or the institution of any
                      steps to terminate, any employee benefit plan as to which
                      the Company may have liability.

          (g)  Inspection Rights. At any reasonable time and from time to time,
               permit the Director, or any agents or representatives thereof,
               to examine and make copies of and abstract from the records and
               books of account of, and visit the properties of, the Company
               and discuss the general business affairs of the Company with any
               of its

                                      -19-
<PAGE>
               officers; provided, however, that the Company reserves the right
               to restrict access to any of its facilities in accordance with
               reasonably adopted procedures relating to safety and security.

          Section 4.3. Negative Covenants of the Company. Throughout the term of
this Agreement, the Company shall not:

          (a)  Maintain Existence. Sell, transfer or otherwise dispose of all,
               or substantially all, of its assets, consolidate with or merge
               into any other entity, or permit one or more entities to
               consolidate with or merge into it; provided, however, that the
               Company may, without violating the agreement contained in this
               subsection (a), consolidate with or merge into another
               corporation, or sell, transfer or otherwise dispose of all, or
               substantially all, of assets as a corporation and thereafter
               dissolve, if: (i) the prior written consent of the Director is
               obtained; (ii) the surviving, resulting or transferee
               corporation, as the case may be, assumes in writing all of the
               obligations of the Company hereunder (if such surviving,
               resulting or transferee corporation is other than the Company);
               and (iii) the surviving, resulting or transferee corporation, as
               the case may be, is a corporation duly organized and validly
               existing under the laws of the State or duly qualified to do
               business therein, and has a net worth of not less than that of
               the Company immediately prior to such disposition, consolidation
               or merger, transfer or change of form.

          (b)  ERISA. Voluntarily terminate any employee benefit plan or other
               plan (a "Plan") maintained for employees of the Company and
               covered by Title IV of ERISA, so as to result in any material
               liability of the Company to the Pension Benefit Guaranty
               Corporation ("PBGC"), enter into any Prohibited Transaction (as
               defined in Section 4975 of the Internal Revenue Code of 1954, as
               amended, and in ERISA) involving any Plan which results in any
               material liability of the Company to the PBGC, cause any
               occurrence of any Reportable Event (as defined in Title IV of
               ERISA) which results in any material liability of it to the
               PBGC, or allow or suffer to exist any other event or condition
               which results in any material liability of the Company to the
               PBGC.

          (c)  Agreements. Enter into any agreement containing any provisions
               which would be violated or breached by the performance of its
               obligations hereunder or under any instrument or document
               delivered or to be delivered by it hereunder or in connection
               herewith.

                                      -20-
<PAGE>
     (d)  Assignment or Lease. In whole or in part, assign this Agreement or
          lease or grant the right to occupy or use the Project to others,
          without the prior written consent of the Director.

     (e)  Without the prior written consent of the Director,

          (i)   Suspension of Operation. Suspend or discontinue operation of the
                Project.

          (ii)  Removal of Assets. Remove, transfer or transport any of the
                Company's assets that are subject to the Security Document from
                the State other than the operation of motor vehicles, the
                shipment of goods in the ordinary course of business or the sale
                of assets in the ordinary course of business.

                                   ARTICLE V

                  EVENTS OF DEFAULT AND REMEDIES; TERMINATION

     Section 5.1. Events of Default. Each of the following shall be an "Event
of Default":

     (a)  The Company shall fail to pay any amount payable pursuant to this
          Agreement on the date on which such payment is due and payable or
          under the Note within ten (10) days after the date on which such
          payment is due and payable; or

     (b)  The Company shall fail to observe and perform any agreement, term or
          condition contained in this Agreement other than as required pursuant
          to subsection (a) above, and such failure continues for a period as
          the Director may agree to in writing; provided, that if the failure is
          of such nature that it can be corrected but not within the applicable
          period, such failure shall not constitute an Event of Default so long
          as the Company institutes curative action within the applicable period
          and diligently pursues such action to completion; or

     (c)  Any representation or warranty made by the Company (or any of its
          officers) herein or in any other Loan Documents, Loan Approval
          Documents or Lender Loan Documents or in connection herewith or
          therewith shall prove to have been incorrect in any material respect
          when made; or

     (d)  The Company shall fail to pay any indebtedness of the Company in
          excess of Fifty Thousand Dollars ($50,000), or any interest or
          premium thereon, when due (whether by scheduled maturity, required
          prepayment, by acceleration,

                                      -21-
<PAGE>
          on demand or otherwise) and such failure shall continue after the
          applicable grace period, if any, specified in the agreement or
          instrument relating to such indebtedness or otherwise agreed upon by
          the holder of such indebtedness; or any other default under any
          agreement or instrument relating to any such indebtedness, or any
          other event, shall occur and shall continue after the applicable grace
          period, if any, specified in such agreement or instrument, if the
          effect of such default or event is to accelerate the maturity of such
          indebtedness; or any such indebtedness shall be declared to be due and
          payable, or required to be prepaid (other than by a regularly
          scheduled required prepayment), prior to the stated maturity thereof;
          provided that, the foregoing shall not be deemed to be an Event of
          Default if, at the Company's expense and after prior notice to the
          Director, by appropriate proceedings diligently prosecuted, the
          Company contests in good faith the validity or amount of any of the
          foregoing items and during the period of contest, and after notice to
          the Director, may permit the items so contested to remain unpaid;
          provided further that, if at any time the Director, in his sole
          discretion, shall instruct the Company to pay any such items and such
          items are not paid within three (3) days after notice from the
          Director, such failure to pay shall be an Event of Default hereunder;
          and or

     (e)  The Company commences a voluntary case concerning it under Title II of
          the United States Code entitled "Bankruptcy" as now or hereafter in
          effect, or any successor thereto (the "Bankruptcy Code"); or an
          involuntary case is commenced against the Company under the Bankruptcy
          Code and relief is ordered against the Company, or the petition is
          controverted but is not dismissed within sixty (60) days after the
          commencement of the case; or the Company is not generally paying its
          debt as such debts become due; or a custodian (as defined in the
          Bankruptcy Code) is appointed for, or takes charge of, all or
          substantially all of the property of the Company; or the Company
          commences any other proceeding under any reorganization, arrangement,
          readjustment of debt, relief of debtors, dissolution, insolvency or
          liquidation or similar law of any jurisdiction whether now or
          hereafter in effect; or there is commenced against the Company any
          such proceeding which remains undismissed for a period of sixty (60)
          days; or the Company is adjudicated insolvent or bankrupt; or the
          Company fails to controvert in a timely manner any such case under the
          Bankruptcy Code or any such proceeding any such case or proceeding or
          in the appointment of any custodian or the like of or for it or any
          substantial part of its property or suffers any such appointment to
          continue undischarged or unstayed for a

                                      -22-
<PAGE>
          period of sixty (60) days; or the Company makes a general assignment
          for the benefit of creditors; or any action is taken by the Company
          for the purpose of effecting any of the foregoing; or a receiver or
          trustee or any other officer or representative of the court or of
          creditors, or any court, governmental officer or agency, shall under
          color of legal authority, take and hold possession of any substantial
          part of the property or assets of the Company for a period in excess
          of sixty (60) days; or

     (f)  A judgment or order for the payment of money in excess of Fifty
          Thousand Dollars ($50,000.00) shall be rendered against the Company
          and either (i) enforcement proceedings shall have been commenced by
          any creditor upon such judgment or order or (ii) there shall be any
          period of thirty (30) consecutive days during which a stay of
          enforcement of such judgment or order, by reason of a pending appeal
          or otherwise, shall not be in effect; or

     (g)  Any default under the Note, the Security Document or any other Loan
          Document or Lender Loan Documents shall have occurred and be
          continued; or

     (h)  The Company fails to meet its minimum funding requirements under
          Section 301 et seq. of ERISA, with respect to any of its Plans.

     Section 5.2. Remedies on Default. Whenever an Event of Default shall have
happened and be subsisting, any one or more of the following remedial steps may
be taken:

     (a)  If the Loan has not been disbursed, the Director may terminate any and
          all of its obligations under this Agreement and the Commitment;

     (b)  The Director may declare all payments under the Note to be immediately
          due and payable, whereupon the same shall become immediately due and
          payable;

     (c)  The Director may exercise any or all or any combination of the
          remedies specified in Section 6.3 of the Open-End Parity Mortgage and
          Security Agreement or in any other Loan Documents;

     (d)  The Director may have access to, inspect, examine and make copies of
          the books and records accounts and financial data of the Company; or

     (e)  The Director may pursue all remedies now or hereafter existing at law
          or in equity to collect all amounts then due and thereafter to become
          due under this Agreement, the Security Document, the Note or any other
          Loan Documents, or to enforce the performance and observance of

                                      -23-

<PAGE>
          any other obligation or agreement of the Company under the Loan
          Documents.

     Section 5.3. No Remedy Exclusive. No remedy conferred upon or reserved to
the Director by this Agreement is intended to be exclusive of any other
available remedy or remedies, but each and every such remedy shall be
cumulative and shall be in addition to every other remedy given under this
Agreement, each other Loan Document, or now or hereafter existing at law, in
equity or by statute. No delay or omission to exercise any right or power
accruing upon any default shall impair any such right or power or shall be
construed to be a waiver thereof, but any such right and power may be exercised
from time to time and as often as may be deemed expedient. In order to entitle
the Director to exercise any remedy reserved to it in this Article, it shall
not be necessary to give any notice, other than such notice as may be expressly
provided for herein or required by law.

     Section 5.4. Agreement to Pay Attorneys' Fees and Expenses. If an Event of
Default shall occur and the Director shall incur expenses, including attorney's
fees, in connection with the enforcement of this Agreement, or any other Loan
Document, or the collection of sums due thereunder, the Company shall reimburse
the Director for the expenses so incurred upon demand. If any such expenses are
not so reimbursed, the amount thereof, together with interest thereon from the
date of demand for payment at the Interest Rate for Advances (as defined in the
Security Document), shall constitute indebtedness secured by the Security
Document, and in any action brought to collect such indebtedness or to
foreclose or enforce the Security Document, the Director shall be entitled to
seek the recovery of such expenses in such action.

     Section 5.5. No Waiver. No failure by the Director to insist upon the
strict performance by the Company of any provision hereof shall constitute a
waiver of his right to strict performance and no express waiver shall be deemed
to apply to any other existing or subsequent right to remedy the failure by the
Company to observe or comply with any provision hereof.

                                   ARTICLE VI

                                 MISCELLANEOUS

     Section 6.1. Term of Agreement. This Agreement shall be and remain in full
force and effect from the date of its delivery until (a) the termination of
this Agreement pursuant to Section 5.2(a) hereof or (b) such time as the Loan
shall have been fully repaid and all other sums payable to the Company under
this Agreement, the Security Document, the Note and the other Loan Documents
shall have been paid.

     Section 6.2. Notices. All notices, certificates, requests or the
communications hereunder shall be in writing and shall be deemed to be
sufficiently given when mailed by registered or certified mail, postage
prepaid, and addressed to the appropriate Notice Address. The

                                      -24-
<PAGE>
Company or the Director may, by notice given hereunder, designate any further
or different addresses to which subsequent notices, certificates, requests or
other communications shall be sent.

     Section 6.3. Extent of Covenants of the Director; No Personal Liability.
All covenants, obligations and agreements of the Director contained in this
Agreement shall be effective to the extent authorized and permitted by
applicable law. No such covenant, obligation or agreement shall be deemed to be
a covenant, obligation or agreement of any present or future Director in other
than his official capacity acting pursuant to the Act.

     Section 6.4. Binding Effect. This Agreement shall incure to the benefit of
and shall be binding in accordance with its terms upon the Director, the
Company and their respective successors and assigns.

     Section 6.5. Amendments and Supplements. This Agreement may not be amended
or supplemented except by an instrument in writing executed by the Director and
the Company.

     Section 6.6. Execution Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be regarded as an original and all
of which shall constitute but one and the same instrument.

     Section 6.7. Severability. If any provision of this Agreement, or any
covenant, obligation or agreement contained herein is determined by a court to
be invalid or unenforceable, such determination shall not affect any other
provision, covenant, obligation or agreement, each of which shall be construed
and enforced as if such invalid or unenforceable portion were not contained
herein. Such invalidity or unenforceability shall not affect any valid and
enforceable application thereof, and each such provision, covenant, obligation
or agreement, shall be deemed to be effective, operative, made, entered into or
taken in the manner and to the full extent permitted by law.

     Section 6.8. Captions. The captions and headings in this Agreement shall
be solely for convenience of reference and shall in no way define, limit or
describe the scope or intent of any provisions or Sections of this Agreement.

     Section 6.9. Governing Law. This Agreement shall be deemed to be a
contract made under the laws of the State and for all purposes shall be
governed by and construed in accordance with the laws of the State.

                           [Signatures on next page]

                                      -25-
<PAGE>
          IN WITNESS WHEREOF, this Agreement has been executed and delivered all
as of the date hereinbefore written.

                                        DIRECTOR OF DEVELOPMENT OF THE
                                          STATE OF OHIO, ACTING ON BEHALF
                                          OF THE STATE

                                        By:     /s/ Mark Barbash
                                            -------------------------
                                                  Mark Barbash
                                                  Deputy Director

                                        LESCO, INC., an Ohio corporation

                                        By: /s/
                                            ------------------------
                                            Title: Exec. V.P.

                                      -26-<PAGE>
                                                                   Exhibit 10(b)

                   THE LESCO, INC. 1992 STOCK INCENTIVE PLAN
                        (as amended December 18, 1997)

SECTION 1. PURPOSE.

      The purpose of the LESCO, Inc. 1992 Stock Incentive Plan ("Plan") is to
aid LESCO, Inc. (hereinafter referred to, collectively with its subsidiaries,
unless the context otherwise requires, as the "Company") in the retention and
attraction of selected individuals who have demonstrated superior ability and
initiative and to provide them with a long-term incentive to exert extraordinary
efforts toward the achievement of increased growth and profitability in the
operations of the Company and its future, and further, to identify their
interests with those of the shareholders.

SECTION 2. DEFINITIONS.

      As used in the Plan, the following terms have the meanings set forth
below:

      "Award" means any Option, Stock Appreciation Right, Performance Share
Award, Restricted Stock Award, or Stock Award granted pursuant to the provisions
of the Plan.

      "Award Agreement" means a written agreement evidencing any Award granted
hereunder.

      "Board" means the Board of Directors of the Company.

      "Change in Control" has the meaning provided in Section 11

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

      "Committee" means a committee of not less than two (2) persons who are
both "Non-Employee Directors" (within the meaning of Rule 16b-3(b)(3)
promulgated by the Securities and Exchange Commission under the Exchange Act, or
any successor rule or statute) and "Outside Directors" (within the meaning of
Section 162(m) of the Code).

      "Company" has the meaning provided in Section 1.

      "Director" means a member of the Board.

      "Employee" means any employee of the Company or of any Subsidiary.

      "Exchange Act" means the Securities Exchange Act of 1934, as amended.

      "Fair Market Value" means (i) the mean between the highest and lowest
selling prices reported by the consolidated stock exchange network for the
Shares on the Grant Date, (ii) if there are no sales of Shares reported by the
consolidated stock exchange network on the

                                      -1-

<PAGE>
Grant Date, the mean between the highest and lowest reported selling prices on
the consolidated stock exchange network on the nearest trading date before such
date and on which there were such sales. If the Shares are not traded on a
national securities exchange and high and low selling prices are reported on
NASDAQ, then the term "Fair Market Value" means (i) the mean between highest and
lowest selling prices reported on NASDAQ on the Grant Date; or (ii) if there are
no sales of Shares reported by NASDAQ for such date, the mean between the
highest and lowest reported selling prices on NASDAQ on the nearest trading date
before such date on which there were such sales. If the Shares are not traded on
a national securities exchange or otherwise in a manner resulting in reporting
of high and low selling prices on NASDAQ, the term "Fair Market Value" means
the mean between the bid and asked prices of the Shares as reported by such
sources as shall be, in the judgment of the Committee, appropriate evidence of
such prices, as of the close of business on the Grant Date or if there are no
sales an such date on the nearest trading date before such date on which there
were such sales. If there shall be no trading in the Shares at any time then the
term "Fair Market Value" means the value per Share as determined by the
Committee upon consideration of such financial, market, or other relevant data
as the Committee may deem necessary and appropriate.

      "Grant Date" means the date on which the Board approves the grant of an
Option, Stock Appreciation Right, Performance Share Award, Restricted Stock
Award or Stock Award.

      "Incentive Stock Option" means an Option that is intended to meet the
requirements of Section 422 of the Code or any successor provision thereto and
any related treasury regulation.

      "Non-Statutory Stock Option" means an Option that is not intended to be an
Incentive Stock Option.

      "Option" means an option to purchase Shares granted hereunder.

      "Option Price" means the purchase price of each Share under an Option.

      "Participant" means an Employee or a Director who is selected by the
Committee to receive an Award under the Plan.

      "Plan" means The LESCO 1992 Stock Incentive Plan, as amended.

      "Restricted Stock Award" means an award of Shares under Section 8 hereof
which is subject to restrictions on transfer.

      "Restriction Period" means the period of time specified in an Award
Agreement during which any of the following conditions remain in effect: (i)
certain restrictions on the sale or other disposition of Shares awarded under
the Plan, (ii) subject to the terms of the

                                      -2-
<PAGE>
applicable Award Agreement, the continued employment of the Participant, and
(iii) such other conditions as may be set forth in the applicable Award
Agreement.

      "Shareholders' Meeting" means the annual meeting of shareholders of the
Company.

      "Stock" or "Shares" means the Company's common shares, without par value.

      "SAR" or "Stock Appreciation Right" means the right to receive a payment
in cash or in Shares, or in any combination thereof, from the Company equal to
the excess of the Fair Market Value of a stated number of Shares at the exercise
date over a fixed price for those Shares.

      "Stock Award" means the grant of unrestricted Shares under the Plan.

      "Subsidiary" means a corporation which is at least 80% owned, directly or
indirectly, by the Company.

      "Ten Percent Shareholder" means an Employee who owns Shares possessing
more than 10 percent of the total combined voting power of all classes of equity
of the Company or of any of its Subsidiaries (a "Ten Percent Shareholder"). For
purposes of determining whether an Employee is a Ten Percent Shareholder, the
attribution rules under Code Section 425(d) shall apply.

      "Voting Stock" means the then-outstanding securities of the Company
entitled to vote generally in the election of directors of the Company.

SECTION 3. ADMINISTRATION.

      The Plan shall be administered by the Committee appointed by the Board.
Up to two other appointed Directors may serve as alternative members of the
Committee. Members and alternate members serve at the pleasure of the Board. A
vacancy on the Committee may be filled temporarily by one of the alternative
members until the vacancy is filled by the appointment or a successor member by
the Board.

      Members of the Committee may participate in the Plan, however, an Award
granted to a member of the Committee must be approved by the full Board.

      Subject to the express provisions of this Plan, the Committee shall
administer this Plan according to its purpose. The Committee shall have
conclusive authority to designate Employees and Directors to be Participants for
Awards, and determine the type and number of Awards, and be responsible for the
interpretation and construction of all provisions of this Plan consistent with
law and may establish, amend and rescind general and special rules and
regulations consistent therewith for administration of the Plan; it shall have
the authority to construe and interpret, as well as prescribe the terms and
provisions of all Award Agreements entered into hereunder and make all other
determinations deemed necessary or

                                      -3-
<PAGE>
advisable for the administration of this Plan, and shall have such other
authority as the Board may from time to time deem necessary or desirable.

SECTION 4. SHARES SUBJECT TO THE PLAN.

      (a) Subject to adjustment as provided in the Plan, the total number of
Shares available under the Plan shall not exceed    Shares excluding the total
number of Shares covered by Options which are outstanding under the LESCO 1987
Stock Option Plan as amended, or have been exercised under the 1987 Stock Option
Plan during the term of this Plan. Settlement of an Award, whether by the
issuance of Shares or the payment of cash, shall not be deemed to be the grant
of an Award hereunder. In addition, any Shares issued by the Company through the
assumption or substitution of outstanding grants from an acquired company shall
not reduce the Shares available for grants under the Plan. Any Shares issued
hereunder may consist, in whole or in part, of authorized and unissued Shares or
treasury Shares. If any Shares subject to any Award granted hereunder are
forfeited, cancelled, or if such Award otherwise terminates or expires in whole
or in part without the issuance of such Shares or payment of other consideration
in lieu of such Shares, the Shares subject to such Award, to the extent of any
such forfeiture, cancellation, termination, or expiration, shall again be
available for grant under the Plan as if such Shares had not been subject to an
Award.

      (b) The number of Shares which remain available for grant pursuant to this
Plan, together with Shares subject to outstanding Awards, at the time of any
change in the capitalization of the Company, including stock splits, stock
dividends, mergers, reorganizations, consolidations, recapitalizations, or other
changes in corporate structure, and occurring after the adoption of this Plan,
shall be appropriately and proportionately adjusted to reflect such change in
capitalization.

      (c) The total number of Shares subject to any Awards granted to a
Participant in the same calendar year cannot exceed ____.

      (d) The Committee shall maintain records showing the cumulative total of
all Shares awarded under this Plan.

SECTION 5. ELIGIBILITY.

      Any Employee or officer (who also may be a Director) of the Company shall
be eligible to be selected as a Participant who, in the judgment of the
Committee, occupies a position in which his or her efforts contribute to the
profits or growth of the Company or any of its Subsidiary corporations. In
addition, and without limiting the foregoing, a Nonqualified Stock Option, Stock
Award, Restricted Stock Award, SARs or Performance Share Award may be granted
to a Director who is not an Employee or officer of the Company.

                                      -4-
<PAGE>
SECTION 6. GRANTS OF STOCK OPTIONS.

      Non-Statutory Stock Options and Incentive Stock Options may be granted
hereunder, to Participants either separately or in conjunction with other Awards
granted under the Plan. Any Option granted to a Participant under the Plan shall
be evidenced by an Award Agreement in such form as the Committee may from time
to time approve, which shall be duly executed by and on behalf of the Company
and delivered to the Participant. Options will be subject to the following terms
and conditions and to any additional terms and conditions, not inconsistent with
the provisions of the Plan, as the Committee deems appropriate.

      (a)   Option Price. The purchase price per Share under an Option shall be
the Fair Market Value on the Grant Date of the Option. Payment of the Option
Price may be made in cash, Shares, or a combination of cash and Shares, as
provided in the Award Agreement relating thereto.

      Notwithstanding the foregoing, if at the time an Incentive Stock Option is
granted to a Ten Percent Shareholder, then the Option Price per Share for such
Ten Percent Shareholder shall be no less than and, in the discretion of the
Committee, shall be equal to or greater than 110 percent of the Fair Market
Value.

      (b)   Option Period. The term of each Option shall be fixed by the
Committee in its sole discretion; provided that no Incentive Stock Option shall
be exercisable after the expiration of ten years from the Grant Date. Unless an
earlier termination date is fixed by the Committee at the time of grant, Options
granted under this Plan shall terminate and shall not be exercisable (or
surrendered) after the expiration of ten years from the Grant Date (or
surrendered). In the event a Ten Percent Shareholder is granted an Incentive
Stock Option pursuant to this Plan the preceding sentence shall be read by
substituting "five" for "ten" therein. In addition, an Incentive or Nonqualified
Stock Option granted under this Plan shall be considered terminated, in whole or
in part, to the extent that, in accordance with Section 6 it can no longer be
exercised for Shares originally subject to such Option.

      (c)   Exercise of Options and Surrender of SARs.

            (1)   By a Participant During Continuous Service or Employment.

                  Options shall be exercised or SARs surrendered (which are
            governed by Section 7 of the Plan) only if at all times during the
            period beginning on the Award Date on which such Option or SAR was
            granted and ending on the day three months before the date of
            exercise (or surrender) (but in no event later than the end of the
            fixed term of such Option or SAR), the Participant was a Director
            of the Company or an Employee of (a) the Company; (b) a Subsidiary;
            or (c) a corporation (or its parent or subsidiary) issuing or
            assuming a Stock Option in a transaction (i) to which Code Section
            424(a) applies, and (ii) to which the Company (or its Subsidiary) is
            also a party. In

                                      -5-
<PAGE>
            the case of a Participant who is disabled (within the meaning of
            Section 150(d)(4) of the Code) the three month period set forth in
            the preceding sentence shall be extended to one year. Such Options
            may be exercised, or in the case of SARs surrendered, only as to the
            number of Shares for which it could have been exercised, or as to
            the amount of SARs which may be surrendered, on the date the
            Employee or former Employee ceased employment or the Director ceased
            serving on the Board (other than by reason of death) or for such
            greater number of Shares subject to such Option, or as to the
            greater amount of SARs which may be surrendered, as to which the
            Committee may authorize an acceleration of vesting for such Option
            or SARs.

            (2)   In Case of Death.

                  If a Participant who was awarded an Option or SAR dies, and at
            the time of Participant's death he or she was entitled to exercise
            any such Option or surrender any SAR granted under this Plan, such
            Option may be exercised or SAR surrendered within twelve months
            after the death of the Participant (but not later than the end of
            the fixed term of such Option or SAR) by his or her estate, or by a
            person who acquired the right to exercise such Option or surrender
            such SAR by bequest or inheritance. Such Option may be exercised
            only as to the number of Shares for which it could have been
            exercised or for the amount of the Company's obligation for which an
            SAR could be surrendered at the date of death of the Participant or
            for such greater number of Shares subject to such Option or for the
            amount of the Company's obligation for which an SAR could be
            surrendered as to which the Committee may authorize an acceleration
            of time under such Option or SAR.

            (3)   Purchase of Options Following Death.

                  Following the death of a Participant who at the time of his or
            her death was entitled to exercise any Option granted under this
            Plan, the Company may, at its election, upon the request of the
            holder of such Option (the estate or legal representative or heir of
            the deceased Participant, as the case may be), at any time prior to
            its exercise or termination, purchase such Option at an aggregate
            price equal to the excess of the Fair Market Value on the date of
            such request, over the Option Price, multiplied by the number of
            Shares as to which such Option was then subject to exercise.

      (d) Incentive Stock Options. The aggregate Fair Market Value of the Shares
(determined as of the time the Award is granted) with respect to which Incentive
Stock Options held by any Participant which are exercisable for the first time
by such Participant during any calendar year under the Plan (and under any other
benefit plans of the Company, or Subsidiary) shall not exceed $100,000 or, if
different, the maximum limitation in effect at the Grant Date under Section 422
of the Code, or any successor provision, and any regulations promulgated
thereunder. The terms of any Incentive Stock Option granted

                                       -6-
<PAGE>
hereunder shall comply in all respects with the provisions of Section 422 of the
Code, or any applicable successor provision, and any regulations promulgated
thereunder.

      (e)   Method of Exercise of Options.

      Each Option awarded under this Plan shall be deemed exercised when the
holder thereof shall indicate the decision to do so in a writing delivered to
the Company, and shall at the same time tender to the Company payment for the
Shares as to which such Option is exercised, and shall comply with such other
reasonable requirements as the Committee may establish pursuant to Section 3 of
this Plan, but this provision shall not preclude exercise of any such Option by
any other proper legal method specifically approved by the Committee.

      Payment of the Option Price for Shares as to which any Option is exercised
shall be made (i) in cash, (ii) by delivery of Shares, (iii) by delivery of a
promissory note payable to the Company, or (iv) any combination of the above,
such that the sum of the amount of cash, the Fair Market Value of Shares, or the
principal amount of the promissory note (or the combination thereof) equals the
Option Price. A promissory note of the Participant shall be in such form and
include such terms and conditions as is specifically approved by the Committee.
The Participant shall pledge his or her beneficial interest in the Shares being
purchased as additional security for payment of the promissory note. Election to
pay the Option Price in any form other than all cash shall be subject to
approval by the Committee.

      No person, estate or other entity shall have any of the rights of a
Shareholder with reference to Shares subject to an Option until a certificate or
certificates for those Shares have been delivered.

      An Option granted under this Plan may be exercised as to any lesser number
of Shares than the full amount for which it could be exercised. A partial
exercise of an Option shall not affect the right to exercise such Option from
time to time in accordance with this Plan as to the remaining Shares subject to
such Option.

      To the extent that an Option does not qualify as an Incentive Stock Option
by reason of the foregoing Fair Market Value limitation, it shall be treated as
a Nonqualified Stock Option and shall be governed by the pertinent terms and
conditions of this Plan.

      (f) Reload. If a Participant exercises an Option and pays some or all of
the Option Price with Shares (as permitted under (e) above) or surrenders Shares
to satisfy tax withholding obligations, such Participant shall be granted a
reload Option to purchase the number of Shares equal to the number of Shares
used as payment of the Option Price or the  tax withholding obligation, such
reload Option to be granted at the time and subject to the limitation described
below. A reload Option will only be granted if the Fair Market Value of the
Shares on the date of exercise is equal to or greater than 120% of the Option
Price of the Option exercised. The Grant Date for the reload Option shall be the
date on which the original Option is exercised. Options granted to Participants
pursuant to this Section (f) shall have the terms and conditions described in
this Section. Options granted pursuant to this

                                      -7-
<PAGE>
Section (f) shall be of the same character (i.e., Non-Statutory Stock Options or
Incentive Stock Options) as the Option that is exercised to give rise to the
grant of the reload Option, but if an Incentive Stock Option otherwise required
to be granted hereunder cannot be granted under this Section (f) in compliance
with Section 422 of the Code, then a Non Statutory Stock Option shall be granted
in lieu thereof. Options shall be granted pursuant to this Section (f) only to
the extent that the number of Shares covered by such Option grants does not,
when added to the number of Shares covered by Awards previously granted during
such calendar year, exceed the limitation set forth in Section 4(c).

SECTION 7. STOCK APPRECIATION RIGHTS.

      SARs may be granted hereunder to Participants either separately, or in
tandem ("Tandem SARs") with other Awards granted under the Plan and may, but
need not, relate to a specific Option granted under Section 6. The provisions of
SARs need not be the same with respect to each Participant. Any SARs related to
a Non-Statutory Stock Option may be granted at the same time such Option is
granted or at any time thereafter before exercise or expiration of such Option.
Any SAR related to an Incentive Stock Option must be granted at the same time
such Option is granted. Any SAR related to an Option shall be exercisable only
to the extent the related Option is exercisable. In the case of any SAR related
to any Option, the SAR or applicable portion thereof shall terminate and no
longer be exercisable upon the termination or exercise of the related Option.
Similarly, upon exercise of a SAR as to some or all of the Shares covered by a
related Option, the related Option shall be canceled automatically to the extent
of the SAR exercised, and such Shares shall not thereafter be eligible for grant
under Section 6. The Committee may impose such conditions or restrictions on the
exercise of any SAR as it shall deem appropriate.

      Tandem SARs will be exercisable only at such time or times and to the
extent that the Stock Options to which they relate are exercisable, and SARs
granted separately will be exercisable as the Committee may determine.

      The Committee may also grant "Limited" SARs that become exercisable only
in the event of a Change in Control (as herein defined), subject to such terms
and conditions as the Committee may specify at grant. Such Limited SARs shall be
settled solely in cash. The Committee may also provide that, in the event of a
Change in Control, the amount to be paid upon the exercise of a SAR or Limited
SAR shall be based on the price applicable to the Change in Control (as herein
defined), subject to such terms and conditions as the Committee may specify at
grant.

SECTION 8. RESTRICTED STOCK AWARDS.

      (a)   Issuance. Restricted Stock Awards may be issued hereunder to
Participants, either separately or in conjunction with other Awards granted
under the Plan. Each Award under this Section shall be evidenced by an Award
Agreement between the Participant and the Company which shall specify the
vesting schedule, any rights of acceleration and such

                                      -8-
<PAGE>
other terms and conditions as the Board shall determine, which need not be the
same with respect to each Participant.

      (b)   Registration. Shares issued under this Section shall be evidenced by
issuance of a stock certificate or certificates registered in the name of the
Participant bearing the following legend and any other legend required by, or
deemed appropriate under, any federal or state securities laws:

            The sale or other transfer of the Common Shares represented by this
      certificate is subject to certain restrictions set forth in the Award
      Agreement between                        (the registered owner) and LESCO,
      Inc. dated     under LESCO, Inc.'s 1992 Stock Incentive Plan. A copy of
      the Plan and Award Agreement may be obtained from Secretary of Lesco, Inc.

Unless otherwise provided in the Award Agreement between the Participant and the
Company, such certificates shall be retained by the Company until the expiration
of the Restriction Period. Upon the expiration of the Restriction Period, the
Company shall (i) cause the removal of the legend from the certificates for such
Shares as to which a Participant is entitled in accordance with the Award
Agreement and (ii) release such Shares to the custody of the Participant.

      (c)   Forfeiture. Except as otherwise determined by the Committee at the
Grant Date, upon termination of employment of the Participant for any reason
during the Restriction Period, all Shares subject to restriction shall be
forfeited by the Participant and retained by the Company; provided that in the
event of a Participant's retirement, permanent disability, death, or in cases of
special circumstances, the Committee may, in its sole discretion, waive in whole
or in part any or all remaining restrictions with respect to such Participant's
Shares. In such case, unrestricted Shares shall be issued to the Participant at
such time as the Committee determines.

      (d)   Rights as Shareholders. At all times during the Restriction Period,
Participants shall be entitled to full voting rights with respect to all Shares
Awarded under this Section and shall be entitled to dividends with respect to
such Shares payable, at the sole discretion of the Committee, in cash or
additional Shares subject to the same Restriction Period.

SECTION 9. STOCK AWARDS.

      Awards of Shares may be granted hereunder to Participants, either
separately or in conjunction with other Awards granted under the Plan. Subject
to the provisions of the Plan, the Committee shall have sole and complete
authority to determine (i) the Participants to whom such Awards shall be
granted, (ii) the time or times at which such Awards shall be granted, (iii) the
number of Shares to be granted pursuant to such Awards, and (iv) all other
conditions of the Awards. The provisions of Stock Awards need not be the same
with respect to each Participant.

                                      -9-
<PAGE>
SECTION 10. PERFORMANCE SHARE AWARDS.

      (a)   At the discretion of the Committee, Performance Share Awards may be
granted under this Plan to a Participant, which Performance Share Award shall be
credited to a Performance Share Account to be maintained for such Participant.
The value of each Performance Share Award at the time of its grant shall be
zero. The amount of said value with respect to each Performance Share Award
shall, at the end of each fiscal year of the Company, be increased or decreased
(but in no event below zero) by an amount equal to the increase or decrease in
the Fair Market Value of one Share of the Company. The amount of the
Performance Share Account for a Participant shall be further increased or
decreased (as appropriate) in the manner provided above for the period from the
fiscal year end immediately preceding the close of business on the last day of
the period which determines the Participant's right to receive such payment or
if that day is not a business day then until the close of business on the last
business day immediately preceding that date. So long as this Plan remains in
effect, the Company shall credit to each Participant's account in the
Performance Share Account throughout the term of his or her employment with the
Company, amounts equal to dividends payable in cash or property paid from time
to time on issued and outstanding Shares equal to the number of Performance
Share Awards in his or her account, so that the amount of each such credit will
be equivalent to dividends which the Participant would have received had he been
the owner of the number of Shares equal to the number of Performance Share
Awards in his or her account. No such credit shall be made with respect to any
dividend paid after an Employee's termination of employment or a Director's
termination of service to the Board or after any date of termination of this
Plan, even though the record date is prior thereto.

      (b)   If any Performance Share Award under the Plan shall be forfeited or
cancelled, such Performance Share Award may again be awarded under the Plan. The
award of a Performance Share Award under the Plan shall not entitle the
recipient to any voting rights or any other rights of a shareholder with respect
to such Performance Share Award.

      (c)  A Participant shall have no right to receive payment for any part of
his or her Performance Share Award and all of his or her Performance Share Award
shall be forfeited unless he remains in the employment of the Company or in
service to the Board at all times from the date of grant of the subject
Performance Share Award through (a) the last day of the period specified by the
Committee at the time of grant of the Performance Share Award, (b) his or her
normal retirement date, (c) death or (d) the date he becomes disabled, whichever
may come earlier. The Committee may include any and all such additional terms
regarding the forfeiture of Performance Share Awards which it desires, at the
time of grant of such Shares. The exact installment terms or other terms
regarding the forfeiture of Performance Share Awards granted by the Committee
shall be set forth in a written Performance Share Agreement, in such form
consistent with the terms of the Plan as the Committee shall determine, which
shall have been duly executed by or on behalf of the Company and delivered
to the Participant. The Committee may, if in its opinion circumstances warrant
such action, approve payment of any or all of the Performance Share

                                      -10-
<PAGE>
Awards which would otherwise be forfeited as a result of a Participant failing
to remain in the employment of the Company or in service to the Board for the
specified period.

      (d)   If an Employee's employment or Director's service terminates as a
result of death, payment of the amount in the Participant's Performance Share
Account shall be made as promptly as practicable at a valuation for such account
determined as of the close of business on the date of death, or if that is not a
business day, as of the close of business on the last business day preceding
that date.

      (e)   Payment of the amount in a Participant's Performance Share Account
shall be made as soon as practicable after the end of the period which
determines the Participant's rights to receive such payment provided, however,
that prior to the grant of any Award a Participant may elect that payment with
respect to his or her Performance Share Account should be deferred until
termination of employment or service as a Director and that such payment should
be, made in a specified number of installments. Payments shall be made to the
holder of Performance Share Awards in cash, in Shares, or a combination thereof
as the Committee shall provide in its sole discretion. No fractional Shares
shall be issued in payment for Performance Share Awards, and the amount of any
such fractional Shares shall be paid in cash.

      (f)   A Participant shall be "disabled" within the meaning of Section
105(d)(4) of the Code. All determinations as to the date and extent of
disability of any Participant within the meaning of that Code Section shall be
made by the Committee, upon the basis of such evidence as the Committee deems
necessary and advisable.

      (g)   In addition to cancellation by forfeiture as a result of failure to
complete the requisite period of employment, the Committee may cancel
Performance Share Awards with the written consent of a Participant holding such
Performance Share Award granted to him under the Plan. If Performance Share
Awards are so cancelled, such Performance Share Awards shall be available for
further grant in accordance with the Plan.

      (h)   Only the number of Shares delivered upon the payment for Performance
Share Awards shall be charged against the maximum number of Shares which may be
delivered under this Plan, as set forth in Section 4 of the Plan.

      (i)   Those Participants who are subject to Section 16 of the Securities
Exchange Act of 1934 are hereby advised that the staff of the Securities and
Exchange Commission has taken the position that interests similar to Performance
Share Awards are derivative securities within the meaning of the regulations
pursuant to Section 16 of the Securities Exchange Act of 1934.

SECTION 11. CHANGE IN CONTROL.

                                      -11-
<PAGE>
      Notwithstanding the provisions of Section 6, Options shall become
exercisable with respect to 100% of the Shares upon the occurrence of any
Change in Control (as hereinafter defined) of the Company.

      Notwithstanding the provisions of Section 8 and the applicable Award
Agreement, any Restricted Shares shall be 100% vested and without any
restrictions upon the occurrence of any Change in Control of the Company.

      For all purposes of the Plan, a "Change in Control" shall have occurred
if any of the following events shall occur:

      (a)   The Company is merged, consolidated or reorganized into or with
another corporation or other legal person, and immediately after such merger,
consolidation or reorganization less than a majority of the combined voting
power of the then-outstanding securities of such corporation or person
immediately after such transaction are held in the aggregate by the holders of
Voting Stock of the Company immediately prior to such transaction;

      (b)   The Company sells all or substantially all of its assets to any
other corporation or other legal person, and less than a majority of the
combined voting power of the then-outstanding securities of such corporation or
person immediately after such sale are held in the aggregate by the holders of
Voting Stock of the Company immediately prior to such sale;

      (c)   There is a report filed on Schedule 13D or Schedule 14D-1 (or any
successor schedule, form or report), each as promulgated pursuant to the
Exchange Act, disclosing that any person (as the term "person" is used in
Section 13(d)(3) Or Section, 14 (d)(2) of the Exchange Act) has become the
beneficial owner as the term "beneficial owner" is defined under Rule 13(d)(3)
or any successor rule or regulation promulgated under the Exchange Act) of
securities representing 20% or more of the Voting Stock.

      (d)   The Company files a report or proxy statement with the Securities
and Exchange Commission pursuant to the Exchange Act disclosing in response to
Form 8-K or Schedule 14A (or any successor schedule, form or report or item
therein) that a Change in Control of the Company has or may have occurred or
will or may occur in the future pursuant to any then-existing contract or
transaction; or

      (e)   If during any period of two consecutive years, individuals who at
the beginning of any such period constitute the Directors of the Company cease
for any reason to constitute at least a majority thereof, provided, however,
that for purposes of this Section, each Director who is first elected, or
first nominated for election by the Company's Stockholders; by a vote of at
least two-thirds of the Directors of the Company or a committee thereof then
still in office who were Directors of the Company at the beginning of any such
period will be deemed to have been a Director of the Company at the beginning of
such period.

                                        -12-
<PAGE>
      Notwithstanding the foregoing provisions of Section (c) or (d) hereof,
unless otherwise determined in a specific case by majority vote of the Board, a
"Change in Control" shall not be deemed to have occurred for purposes of the
Plan solely because (i) the Company, (ii) an entity in which the Company
directly or indirectly beneficially owns 50% or more of the voting securities,
or (iii) any employee stock ownership plan or any other employee benefit plan
sponsored by the Company, either files or becomes obligated to file a report or
a proxy statement under or in response to Schedule 13D, Schedule 14D-1, Form 8-K
or Schedule 14A (or any successor schedule, form or report of item therein)
under the Exchange Act, disclosing beneficial ownership by it of Shares, whether
in excess of 20% or otherwise, or because the Company reports that a Change in
Control of the Company has or may have occurred or will or may occur in the
future by reason of such beneficial ownership.

SECTION 12. ADJUSTMENT UPON CHANGE OF SHARES.

      In the event of a reorganization, merger, consolidation, reclassification,
recapitalization, combination or exchange of stock, stock split, stock dividend,
rights offering or other event affecting Shares of the Company (other than a
sale of additional Shares by the Company), the number and class of Shares,
subject to outstanding Awards to be granted to Participants pursuant to this
Plan and any Shares subject to Awards to be granted to Participants, or for
which SARs may be surrendered or payment made for Performance Share Awards
previously granted, and the price per share payable upon exercise of such
Options or surrender of such SARs or payment for such Performance Share Awards
shall be equitably adjusted by the Committee, in accordance with any appropriate
rules and regulations of the Commissioner of Internal Revenue or other
regulatory body, to the extent applicable, as the Committee shall deem
appropriate to reflect such change, provided, however, that the number of Shares
shall always be a whole number, and the purchase price per Share of any
outstanding Options shall, in the case of an increase in the number of Shares,
be proportionately increased.

SECTION 13. AMENDMENTS AND TERMINATION OF PLAN.

      The Board may, at any time, amend, alter or terminate the Plan, but no
amendment, alteration, or termination shall be made that would impair the
rights of a Participant under an Award theretofore granted, without the
Participant's consent, or that without the approval of the shareholders would:

      (a)   except as is provided in Section 4(b) and 13(c) of the Plan,
increase the total number of Shares which may be issued under the Plan;

      (b)   change the class of Employees eligible to participate in the Plan;
or

      (c)   materially increase the benefits accruing to Participants under the
Plan; so long as such approval is required by law or regulation.

                                      -13-
<PAGE>
      The Committee may amend the terms of any Award heretofore granted,
prospectively or retroactively, but no such amendment shall impair the rights of
any Participant without his or her consent.

SECTION 14. GENERAL PROVISIONS.

      (a)   No Option, Stock Appreciation Right, Performance Share Award, or
Restricted Stock Award shall be assignable or transferable by a Participant
otherwise than by will or the laws of descent and distribution, and Options and
Stock Appreciation Rights may be exercised during the Participant's lifetime
only by the Participant or, if permissible under applicable law, by the guardian
or legal representative of the Participant.

      (b)   No Participant shall have any claim to be granted any Award under
the Plan and there is no obligation of uniformity of treatment of Participants
under the Plan.

      (c)   The prospective recipient of any Award under the Plan shall not,
with respect to such Award, be deemed to have become a Participant, or to have
any rights with respect to such Award, until and unless such recipient shall
have executed an Award Agreement, and otherwise complied with the then
applicable terms and conditions.

      (d)   All certificates for Shares delivered under the Plan pursuant to any
Award shall be subject to such stock transfer orders and other restrictions as
the Committee may deem advisable under the rules, regulations, and other
requirements of the Securities and Exchange Commission, any stock exchange upon
which the Shares are then listed, and any applicable federal or state securities
law, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

      (e)   No Option shall be exercisable, nor SAR surrendered, nor payment for
Performance Share Award made and no Shares will be delivered under this Plan
except in compliance with all applicable Federal and state laws and regulations
including, without limitation, compliance with applicable securities laws and
withholding tax requirements, if any, and with the rules of all domestic stock
exchanges on which the Company's Stock may be listed. Any stock certificates
issued to evidence Shares as to which an Option is exercised, or Stock Award is
made, or SAR surrendered or payment made for a Performance Share Award may bear
such legends and statements as the Committee shall deem advisable to assure
compliance with Federal and state laws and regulations. No Option shall be
exercisable or SAR surrendered, or payment made for a Performance Share Award
and no Shares will be delivered under this Plan, until the Company has obtained
such consent or approval from regulatory bodies, Federal or state, having
jurisdiction over such matters as the Committee may deem advisable.

      (f)   In the case of the exercise of an Option, a Stock Award, surrender
of an SAR or payment for a Performance Share Award by a person or estate
acquiring the right to exercise such Option or surrender such SAR or receive
payment for such Performance Share Award by bequest or inheritance, the
Committee may require reasonable evidence as to the

                                      -14-
<PAGE>
ownership of such Option, SAR, Stock Award, or Performance Share Award and may
require such consents and releases of taxing authorities as the Committee may
deem advisable.

      (g)   Except as otherwise required in any applicable Award Agreement or by
the terms of the Plan, Participants shall not be required, under the Plan, to
make any payment other than the rendering of services.

      (h)   The Company shall be authorized to withhold from any payment under
the Plan, whether such payment is in Shares or cash, all withholding taxes due
in respect of such payment hereunder and to take such other action as may be
necessary in the opinion of the Company to satisfy all obligations for the
payment of such taxes.

      (i)   Nothing contained in this Plan shall prevent the Board from adopting
other or additional compensation arrangements, subject to shareholders approval
if such approval is required; and such arrangements may be either generally
applicable or applicable only in specific cases.

      j)    Nothing in the Plan shall interfere with or limit in any way the
right of the Company or any Subsidiary to terminate any Participant's employment
at any time, nor shall the Plan confer upon any Participant any right to
continued employment with the Company or any Subsidiary.

      (k)   The Plan shall be applied and construed in accordance with and
governed by the laws of the State of Ohio.

SECTION 15. EFFECTIVE DATE AND TERM OF PLAN.

      This Plan, as amended, shall become effective only if approved by the
holders of a majority of the Company's common shares outstanding and entitled to
vote at the annual meeting of shareholders to be held May  , 1998.

                                        -15-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}]]