Document:

<PAGE>

                                                                   Exhibit 10.10

                                    AGREEMENT

         This Agreement ("Agreement") is entered into as of January 1, 2002,
between Mark Tierney ("Tierney") and eBenX ("Employer").

         WHEREAS, Tierney is currently employed by the Employer pursuant to an
Amended and Restated Executive Employment Agreement, dated September 28, 1999
(the "Employment Agreement");

         WHEREAS, Tierney and Employer have concluded that it is in their mutual
best interest for Tierney to terminate his full-time employment by Employer
while remaining an active member of Employer's board of directors, effective
January 1, 2002;

         NOW, THEREFORE, in consideration of the mutual covenants set forth
below, it is agreed as follows:

     1. Termination of Employment Agreement. Employer and Tierney agree that the
Employment Agreement will terminate on 1/1/02, except as expressly provided
herein.

     2. Severance.

          (a) Employer shall pay to Tierney the amount of $200,000, subject to
     all legally applicable deductions and withholdings, representing Tierney's
     salary over a twelve (12) month period, payable beginning within twenty
     (20) days of Employer's receipt of a copy of this Agreement executed by
     Tierney in accordance with Employer's normal payroll schedule.

          (b) In addition, Employer shall pay to Tierney the amount of $100,000,
     subject to all legally applicable deductions and withholdings, payable
     within twenty (20) days of Employer's receipt of a copy of this Agreement
     executed by Tierney.

          (c) In addition, Tierney will vest in 100% of all unvested stock
     option shares. Unexercised stock option shares will terminate within 90
     days of the date Tierney ceases to be a member of Employer's board of
     directors, or the termination date listed in the option agreements,
     whichever comes first.

          (d) All compensation under this Section 2 shall be deemed severance
     compensation and shall be in lieu of any compensation and other benefits
     payable to Tierney under the Employment Agreement upon or following
     termination thereof.

     3. Board Membership.

          (a) Tierney shall continue as a member of Employer's board of
     directors (the "Board") for the remainder of his current term ending May
     23. 2002, and Employer currently anticipates his nomination at that time
     for reelection to an additional term. Tierney shall

<PAGE>

     continue to serve as Chairman of the Board until such time as the Board
     determines otherwise. So long as Tierney is Chairman of the Board, his
     duties shall be as follows:

               (i)  primary responsibility for strategic positioning;

               (ii) speaking and writing on Employer's behalf;

               (iii) leadership of Employer public relations effort with the
                     media;

               (iv) acting as mentor and coach to CEO, and influence Employer
                    through the CEO;

               (v)  participation in investor relations activities;

               (vi) providing support for sales and marketing activities as
                    requested;

               (vii) [strategic positioning of Benu product; and]

               (viii) other appropriate duties as requested from time to time by
                      the Board and CEO

          (b) So long as Tierney serves as a director, Employer shall provide
     Tierney with a laptop computer, office space, standard office furniture and
     telecommunications access for business-related voice and data
     communication; and will reimburse Tierney for travel or other necessary and
     reasonable expenses Tierney incurs in the course of serving as a director.
     In addition, Employer also agrees to provide Tierney with healthcare
     benefits with coverage levels similar to the Employer's employee coverage
     as long as he serves on the Board, with the understanding that coverage
     levels may change from time to time.

          (c) On May 23, 2002, Tierney will be granted options pursuant to
     Employer's employee stock option plan (the "Plan") to purchase 200,000
     shares of Employer's common stock at an exercise price equal to the closing
     market price on May 23, 2002; provided that no options will be granted if
     prior to May 23, 2002 Tierney resigns from the Board, is removed for cause
     or due to disability, or dies, or if the shareholders of Employer fail to
     approve an increase in the number of shares of common stock authorized for
     grant under the Plan at the May 23, 2002 annual meeting. These options will
     vest 1/3 per year at January 1 of 2003, 2004 and 2005. Additional options
     may be granted in subsequent years as approved by the Board. Upon a change
     of control, or if Tierney leaves his position as a director involuntarily
     and is not removed for cause, 100% of the unvested stock options will
     immediately vest. However, no accelerated vesting will occur if Tierney
     resigns as a director voluntarily or is removed for cause.

          (d) Employer will use commercially reasonable efforts to obtain
     shareholder approval of an increase in the number of shares of common stock
     authorized for grant under the Plan, including inclusion in Employer's
     proxy statement for its annual meeting of the proposal to

                                      -2-
<PAGE>

     increase such authorized shares together with a recommendation that the
     increase be approved. In the event that Employer's shareholders fail to
     approve an increase in the number of shares of common stock authorized for
     grant under the Plan at the May 23, 2002 annual meeting, Employer will
     attempt in good faith to provide to Tierney a replacement benefit with
     equivalent economic benefits to Tierney, and in any event at least as
     favorable to Tierney as any benefits granted to senior management in lieu
     of options that otherwise would have been granted under the Plan, or
     otherwise pursue a commercially reasonable strategy that permits Employer
     to issue the options.

          (e) Tierney agrees that Article 6.0 and Section 8.07 of the Employment
     Agreement will continue in full force and effect so long as he is a
     director of Employer (which shall be your "employment" for purposes of
     Section 6.01 thereof) and for two years thereafter notwithstanding the
     termination of the Employment Agreement, and Article 6.0 and Section 8.07
     of the Employment Agreement are hereby incorporated herein by reference.

          (f) If Tierney ceases to be a director of Employer prior to reaching
     age 65, other than as a result of his death, removal for cause [or
     voluntary resignation], Employer will provide Tierney with COBRA health
     insurance coverage at Tierney's expense.

     4. Release. Tierney, for himself, his heirs, successors and assigns, hereby
fully and completely releases and waives any and all claims, complaints, rights,
causes of action or demands of whatever kind, whether known or unknown, which he
has or may have against Employer and its predecessors, successors, assigns,
subsidiaries and affiliates and all officers, employees, and agents of those
companies, (hereinafter collectively called "the Released Parties") arising out
of any actions, conduct, promises, decisions, statements, behavior or events
occurring at any time prior to or on the date of this Settlement Agreement.
Tierney understands that this Release specifically covers, but is not limited
to, any and all claims, complaints, causes of action or demands which he has or
may have against the Released Parties relating in any way to the Employment
Agreement, the terms, conditions or circumstances of his employment and his
separation from employment by Employer, whether based on statutory or common law
claims for employment discrimination (including age, sex, sexual orientation,
religion, race, national origin, disability or other discrimination arising
under the Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act, the Minnesota Human Rights Act and any other federal, state or
local statute, Executive Order or ordinance prohibiting employment
discrimination), wrongful discharge, breach of contract, breach of any express
or implied promise, misrepresentation, fraud, retaliation, breach of public
policy, infliction of emotional distress, defamation, promissory estoppel,
invasion of privacy, tortuous interference with contract, or any other theory,
whether legal or equitable. This Release does not impair or apply to any
existing vested rights Tierney might have under the terms of any presently
existing employee benefit plans of the Employer applicable to him, under
Workers' Compensation laws, or by reason of this Settlement Agreement and
Release itself. Tierney further agrees that he will not institute any legal
proceedings against the Released Parties as a result of any claims of any kind
or character which Tierney might have against the Released Parties relating in
any way to the Employment

                                      -3-
<PAGE>

Agreement, the terms, conditions or circumstances of his employment and his
separation from employment by Employer, or any other fact or matter occurring
prior to the execution of this agreement by Tierney, nor will Tierney authorize
any other party, whether governmental or otherwise, to seek individual remedies
on his behalf with respect to any such claims. Tierney further acknowledges that
he has been provided a full opportunity to review and reflect on the terms of
this Severance Agreement and Release and has had the opportunity to consult with
and obtained the advice of legal counsel of his choice. Tierney has been advised
of his right to rescind this Settlement Agreement and Release within fifteen
(15) calendar days after the date of his signature below. The rescission must be
in writing and delivered to Employer either by hand or mail within the fifteen
(15) days. If delivered by mail, the rescission must be postmarked within the
fifteen (15) day period, properly addressed to Employer at: John J. Davis,
eBenX, 605 North Highway 169, Suite LL, Minneapolis, MN 55441-6465, and sent by
certified mail return receipt requested. If Tierney rescinds this Release in
accordance with the above provisions, then this entire Agreement is null and
void; provided, however, that any such rescission will not affect the
termination of his employment with the Employer, which stands in all events.

     5. Miscellaneous.

          (a) This Agreement is full and complete, and represents the entire
     understanding and agreement between these parties with regard to all
     matters contained herein. There are no other agreements, conditions, or
     representations, oral or written, express or implied, between these parties
     with regard to the subject matter herein. This Agreement can be amended
     only in writing, signed by both parties hereto.

          (b) The parties have read, considered, and fully understand this
     Agreement, have had sufficient time to consider its terms, and execute it
     knowingly, freely, and voluntarily. Both parties have had opportunity to
     consult with their own independent attorneys or other advisors of their
     choice.

          (c) The undersigned have each read this Agreement and understand all
     the terms fully and enter their signatures in order to signify their
     understanding and voluntary agreement with all of the terms and conditions
     set forth herein.

Dated:                                   EBENX, INC.

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

                                         ---------------------------------------
                                         Mark Tierney

                                      -4-Prepared by R.R. Donnelley Financial -- Amended & Restated Loan & Security Agreement

  
 Exhibit 10.1 
  
 FOURTEENTH AMENDMENT TO 
 SECOND AMENDED AND RESTATED 
 LOAN AND SECURITY AGREEMENT 
  
 This FOURTEENTH AMENDMENT (“Fourteenth Amendment”), dated as of
March 27, 2002, is made to the Second Amended and Restated Loan and Security Agreement, dated as of September 20, 1999, among PW Eagle, Inc. (f/k/a/ Eagle Pacific Industries, Inc. and herein “Borrower”), the lenders named therein
(“Lenders” ), and Fleet Capital Corporation (“FCC”) as agent for said Lenders (“FCC, in such capacity, “Agent”). Said Second Restated Loan and Security Agreement, as amended by an Amendment to Loan and Security
Agreement dated as of September 22, 1999, an Amendment to Loan and Security Agreement dated as of September 24, 1999, a Third Amendment to Second Amended and Restated Loan and Security Agreement dated as of October 8, 1999, a Fourth Amendment to
Second Amended and Restated Loan and Security Agreement dated as of March 10, 2000, a Fifth Amendment to Second Amended and Restated Loan and Security Agreement dated as of July 28, 2000, a Sixth Amendment to Second Amended and Restated Security
Agreement dated as of March 1, 2001, a Seventh Amendment to Second Amended and Restated Loan and Security Agreement dated as of March 30, 2001, an Eighth Amendment to Second Amended and Restated Loan an d Security Agreement dated as of May 14, 2001,
a Ninth Amendment to Second Amended and Restated Loan and Security Agreement dated as of August 13, 2001, a Tenth Amendment to Second Amended and Restated Loan and Security Agreement dated as of December 6, 2001, an Eleventh Amendment to Second
Amended and Restated Loan and Security Agreement dated as of December 31, 2001, a Twelfth Amendment to Second Amended and Restated Loan and Security Agreement dated as of January 25, 2002, a Thirteenth Amendment to Second Amended and Restated Loan
and Security Agreement dated as of February 28, 2002, and as it may be further amended, is hereinafter referred to as the “Loan Agreement.” The terms used herein and not otherwise defined shall have the meanings attributed to them in the
Loan Agreement. 
  
 WHEREAS, Lenders, Agent and Borrower desire to make certain amendments and modifications to the Loan Agreement.

  
 NOW THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained and contained in the Loan
Agreement, the parties hereto hereby agree as follows: 
  
 1.    Financial
Covenants.    Upon the Fourteenth Amendment Effective Date, Exhibit Q to the Loan Agreement is hereby deleted and Exhibit Q attached hereto and incorporated herein is inserted in its stead. 

 
 2.    Reaffirmation of Representations and Warranties.    Borrower hereby reaffirms
each of the warranties and representations contained in the Loan Agreement and the Loan Documents as if each such representation and warranty were made on the date hereof. Further Borrower represents and warrants to Agent and Lenders that as of the
date hereof there are no existing and continuing Defaults or Events of Default after giving effect to this Fourteenth Amendment. 
 

 1 

  
 3.    Amendment Fee.    In order to
induce Agent and Lenders to enter into this Fourteenth Amendment, Borrower agrees to pay to Agent for the ratable benefit of Lenders an amendment fee equal to Seventy–Two Thousand Dollars ($72,000). Said amendment fee shall be payable in full,
fully earned and non–refundable on the date hereof. 
  
 4.    Waiver.    Upon the Fourteenth Amendment Effective Date, Agent and Lenders shall be deemed to have waived compliance by Borrower with the provisions of Section 8.3 of the Loan
Agreement (items Interest Coverage Ratio, Fixed Charge Coverage Ratio, Net Worth and Funded Debt to EBITDA Ratio of Exhibit Q) for the fiscal period ended March 31, 2002. The waiver contained in this Section 4 of the Fourteenth Amendment
shall not extend to any other Section of the Loan Agreement other than Section 8.3 (items Interest Coverage Ratio, Fixed Charge Coverage Ratio, Net Worth and Funded Debt to EBITDA Ratio of Exhibit Q) or any other fiscal period other than the
fiscal period ending March 31, 2002. 
  
 5.    Conditions Precedent.    This
Fourteenth Amendment shall become effective upon satisfaction of each of the following conditions precedent: 
  
 (i) Borrower, Agent and Lenders shall have executed and delivered to each other this Fourteenth Amendment; 
  
 (ii) Borrower shall have paid to Agent the amendment fee pursuant to Section 3 above; 
  
 (iii) Borrower
and the holders of the Subordinated Notes shall have amended the Subordinated Note Documents in a manner acceptable to Agent and Lenders so as to revise the financial covenants contained therein; and 
  
 (iv) Agent and Lenders shall be satisfied, in the reasonable exercise of their discretion, that, after giving effect to this
Fourteenth Amendment, Borrower will not commit an “Event of Default” (as defined in the Sale and Leaseback Agreement) with respect to the financial covenants contained in the Sale and Leaseback Agreement for the fiscal period ended March
31, 2002. 
  
 The date on which all of the foregoing conditions precedent are satisfied shall be called the
“Fourteenth Amendment Effective Date.” 
  
 6.    Counterparts.    This Fourteenth Amendment may be executed in any number of separate counterparts, each of which shall, collectively and separately, constitute one agreement.

  
 7.    Continuing Effect.    Except as otherwise specifically set out
herein, the provisions of the Loan Agreement shall remain in full force and effect. 
  
 8.    Releases;
Indemnities.    (a) In further consideration of Agent’s and Lenders’ execution of this Fourteenth Amendment, Borrower, individually and on behalf of its successors (including, without limitation, any trustees
acting on behalf of Borrower and any debtor–in–possession with respect to Borrower), assigns, subsidiaries and Affiliates, hereby forever releases Agent and Lenders and their respective successors, assigns, parents, subsidiaries,
Affiliates, officers, employees, directors, agents and attorneys (collectively, the “Releasees”) 
 

 2 

  
 from any and all debts, claims, demands, liabilities, responsibilities, disputes, causes, damages, actions and causes of
actions (whether at law or in equity) and obligations of every nature whatsoever, whether liquidated or unliquidated, whether known or unknown, matured or unmatured, fixed or contingent (collectively, “Claims”) that Borrower may have
against the Releasees which arise from or relate to any actions which the Releasees may have taken or omitted to take in connection with the Loan Agreement prior to the date of the Fourteenth Amendment was executed including without limitation with
respect to the Obligations, any Collateral, the Loan Agreement, any other Loan Document and any third parties liable in whole or in part for the Obligations. This provision shall survive and continue in full force and effect whether or not Borrower
shall satisfy all other provisions of the Loan Documents or the Loan Agreement including payment in full of all Obligations. 
  
 (b) Borrower hereby agrees that its obligation to indemnify and hold the Releasees harmless as set forth in Section 8(a) shall include an obligation to indemnify and hold the Releasees harmless with respect to any and all liabilities,
obligations, losses, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever incurred by the Releasees, or any of them, whether direct, indirect or consequential, as a result of or arising from or
relating to any proceeding by, or on behalf of any Person, including, without limitation, officers, directors, agents, trustees, creditors, partners or shareholders of Borrower, whether threatened or initiated, asserting any claim for legal or
equitable remedy under any statutes, regulation or common law principle arising from or in connection with the negotiation, preparation, execution, delivery, performance, administration and enforcement of this Fourteenth Amendment or any other
document executed in connection herewith. The foregoing indemnity shall survive the payment in full of the Obligations and the termination of this Fourteenth Amendment, the Loan Agreement and the other Loan Documents. 
  
 [Signature Page Follows] 
  
 IN
WITNESS WHEREOF, this Fourteenth Amendment has been duly executed as of the date first written above. 
  
  
 
	 PW EAGLE, INC.
 	  	 FLEET CAPITAL CORPORATION
 As Agent and Lender
 
	 
	 By:
 	  	 /s/ Roger R.
Robb                                    03/27/02
 
Name: Roger R. Robb
 Title: Chief Financial Officer
 	  	 By:
 	  	 /s/ Brian Conole
 
Name:
Brian Conole
 Title: Senior Vice President
 
	  	  	  

 
 

 3 

  
 
	 HARRIS TRUST AND SAVINGS BANK
 
	 
	 By:
 	 	 /s/ Daniel Konopacki
 
Name: Daniel
Konopacki
 Title: Vice President
 
	  	 	  

 
  
 
	 THE CIT GROUP/BUSINESS CREDIT, INC.
 
	 
	 By:
 	 	 /s/ Anthony Alexander
 
Name: Anthony
Alexander
 Title: Vice President
 
	  	 	  

 
  
 
	 U.S. BANK NATIONAL ASSOCIATION
 
	 
	 By:
 	 	 /s/ C. Kirk Dyche
 
Name: C. Kirk
Dyche
 Title: Vice President
 
	  	 	  

 
 

 4 

  
 EXHIBIT Q 
  
 FINANCIAL COVENANTS 
  
 Consolidated Net Income means, with respect to
Borrower and its Subsidiaries for any fiscal period, the net income (or loss) of Borrower and its Subsidiaries for such period taken as a whole (determined in accordance with GAAP on a consolidated basis), but excluding in any event: (a) any gains
or losses on the sale or other disposition of Investments or fixed or capital assets or from any transaction classified as extraordinary under GAAP, any taxes on such excluded gains and any tax deductions or credits on account of any such excluded
losses; (b) the proceeds of any life insurance policy; (c) net earnings and losses of any business entity, substantially all the assets of which have been acquired in any manner by Borrower, realized by such business entity prior to the date of such
acquisition; (d) net earnings and losses of any business entity which shall have merged into Borrower earned or incurred prior to the date of such merger; (e) net earnings of any business entity (other than a Consolidated Subsidiary) in which
Borrower has an ownership interest unless such net earnings shall have been received by Borrower in the form of cash distributions; (f) earnings resulting from a reappraisal, revaluation or write-up of assets; (g) any charge to net earnings
resulting from the amortization of the value of stock options given to employees to the extent required by FASB 25; (h) any increase or decrease of net income arising from a change in Borrower’s accounting methods; (i) any gains resulting from
the forgiveness of Funded Debt or the retirement of Funded Debt at a discount; (j) any gain arising from the acquisition of any Securities of Borrower; and (k) any reversal of any contingency reserve, except that provision for such contingency
reserve shall have been made from income arising during such period. 
  
 EBITDA With respect to any fiscal period,
the sum of Borrower’s Consolidated Net Income plus amounts deducted in determining Consolidated Net Income in respect of: (a) any provision for (or less any benefit from) income taxes whether current or deferred; (b) amortization and
depreciation expense; (c) Interest Expense for such period; (d) prior to December 31, 1999, that portion of cost of goods sold resulting from the write-up of Inventory in connection with the Acquisition pursuant to APB 16; provided that the
aggregate amount added to EBITDA pursuant to this clause (d) shall not exceed $3,000,000; and (e) the restructuring charge taken in the third fiscal quarter of fiscal year 2001 in the amount of Two Million Five Hundred Thousand Dollars
($2,500,000.00). 
  
 Fixed Charge Coverage Ratio—With respect to any period of determination, the ratio of (i)
EBITDA of Borrower for such period minus income taxes paid in cash and non-financed Capital Expenditures during such period to (ii) Fixed Charges. 
  
 Fixed Charges—For any period of determination, the sum of (a) scheduled principal payments of Funded Debt (including the principal portion of scheduled payments of Capital Lease Obligations), (b)
Interest Expense paid in cash included in the determination of Consolidated Net Income, and (c) dividends paid on Borrower’s capital stock. 
 

 5 

  
 Funded Debt—means: (i) Indebtedness arising from the lending of money by any
Person to Borrower, including, without limitation, the Obligations; (ii) Indebtedness, whether or not in any such case arising from the lending by any Person of money to Borrower (A) which is represented by notes payable or drafts accepted that
evidence extensions of credit, (B) which constitutes obligations evidenced by bonds, debentures, notes or similar instruments, or (C) upon which interest charges are customarily paid (other than accounts payable) or that was issued or assumed as
full or partial payment for Property; (iii) Indebtedness that constitutes a Capitalized Lease Obligation; (iv) reimbursement obligations with respect to letters of credit or guaranties of letters of credit and (v) Indebtedness of Borrower under any
guaranty of obligations that would constitute Funded Debt under clauses (i) through (iv) hereof if owed directly by Borrower or any guaranty having the economic effect of guaranteeing any of the obligations of any other Person. In computing the
amount of Funded Debt, the Subordinated Notes will be valued at full face value (less any payments thereon) without giving effect to any original issue discount. 
  
 Funded Debt to EBITDA Ratio—With respect to any date, the ratio of (i) total funded Funded Debt as of such date to (ii) EBITDA. For purposes of the Funded Debt to
EBITDA Ratio, (i) for the period from 10/1/99 through 12/31/99, the period from 7/1/01 through 9/30/01 and the period from 1/1/02 to 3/31/02, EBITDA for such periods shall be actual EBITDA for such period multiplied by four (4); (ii) for the period
from 10/1/99 through 3/31/2000, the period from 7/1/01 through 12/31/01 and the period from 1/1/02 to 6/30/02, EBITDA for such period shall be actual EBITDA for such periods multiplied by two (2); and (iii) for the period from 10/1/99 through
6/30/00, the period from 7/1/01 through 3/31/02 and the period from 1/1/02 to 9/30/02, EBITDA for such period shall be actual EBITDA for such period multiplied by four-thirds (4/3). 
  
 Interest Coverage Ratio—With respect to any period of determination, the ratio of (i) EBITDA for such period to (ii) Interest Expense paid in cash for such period, all
as determined in accordance with GAAP. 
  
 Interest Expense—With respect to any fiscal period, the interest
expense incurred for such period excluding interest income as determined in accordance with GAAP. 
  
 Investment—All investments in the property or assets of any person, in cash or property, whether by way of advance, loan, extension of credit by Borrower or any of its Subsidiaries (by way of guaranty or otherwise) or
capital contribution, or purchase of stock, bonds, notes, debentures or other securities or any assets constituting the purchase of a business or line of business. 
  
 Net Worth—Book net worth of the Borrower as determined in accordance with GAAP. For purposes of this Exhibit Q, Net Worth shall include any unamortized value
assigned to the Warrants issued in connection with the Subordinated Notes which value was calculated in accordance with GAAP and is contained in Borrower’s Consolidated Financial Statements. 
 

 6 

  
 Interest Coverage Ratio—Borrower shall not permit the Interest Coverage
Ratio as of the last date of the period set forth below to be less than the ratio set forth opposite such period below: 
  
 
	 Period
 
	  	 Ratio
 

	 For 3 months ending 3/31/2002
 	  	 N.A.
 
	 For 6 months ending 6/30/2002
 	  	 1.85 to 1
 
	 For 9 months ending 9/30/2002
 	  	 2.10 to 1
 
	 For 12 months ending 12/31/2002
 	  	 1.95 to 1
 
	 Trailing 12 month period ending 3/31/2003 and each 6/30, 9/30, 12/31 and 3/31 thereafter
 	  	 2.00 to 1
 

 
  
 Fixed Charge Coverage Ratio—Borrower shall not permit the
Fixed Charge Coverage Ratio as of the last date of the period set forth below to be less than the ratio set forth opposite such period below: 
  
 
	 Period
 
	  	 Ratio
 

	 For 3 months ending 3/31/2002
 	  	 N.A.
 
	 For 6 months ending 6/30/2002
 	  	 1.10 to 1
 
	 For 9 months ending 9/30/2002
 	  	 1.30 to 1
 
	 Trailing 12 month period ending 12/31/2002
 	  	 1.05 to 1
 
	 Trailing 12 month period ending 3/31/2003 and each 6/30, 9/30, 12/31 and 3/31 thereafter
 	  	 1.10 to 1
 

 
  
 Net Worth—Borrower shall achieve Net Worth as of the last day
of each period set forth below of not less than the amount set forth opposite such period below: 
  
 
	 Period
 
	  	 Ratio
 

	 For Quarter ending 3/31/2002
 	  	 N.A.
 
	 For Quarter ending 6/30/2002
 	  	 $18,200,000
 
	 For Quarter ending 9/30/2002
 	  	 $18,400,000
 
	 For Quarter ending 12/31/2002
 	  	 $16,600,000
 
	 For Quarter ending 3/31/2003
 	  	 $14,700,000
 
	 For Quarter ending 6/30/2003
 	  	 $16,000,000
 
	 For Quarter ending 9/30/2003
 	  	 $15,900,000
 
	 For Quarter ending 12/31/2003
 	  	 $15,600,000
 
	 For Quarter ending 3/31/2004
 	  	 $14,100,000
 
	 For Quarter ending 6/30/2004 and each Quarter thereafter
 	  	 $14,700,000
 

 
 

 7 

  
 Funded Debt to EBITDA Ratio—Borrower shall not permit the Funded Debt to
EBITDA Ratio for any period set forth below to be greater than the ratio set forth opposite such period below: 
  
 
	 Period
 
	  	 Ratio
 

	 3 months ending 3/31/2002
 	  	 N.A.
 
	 6 months ending 6/30/2002
 	  	 5.20 to 1
 
	 9 months ending 9/30/2002
 	  	 3.80 to 1
 
	 Trailing 12 month period ending 12/31/2002
 	  	 5.40 to 1
 
	 Trailing 12 month period ending 3/31/2003
 	  	 5.50 to 1
 
	 Trailing 12 month period ending 6/30/2003
 	  	 5.50 to 1
 
	 Trailing 12 month period ending 9/30/2003
 	  	 5.50 to 1
 
	 Trailing 12 month period ending 12/31/2003
 	  	 4.70 to 1
 
	 Trailing 12 month period ending 3/31/2004
 	  	 4.40 to 1
 
	 Trailing 12 month period ending 6/30/2004 and each 9/30, 12/31, 3/31 and 6/30 thereafter
 	  	 4.00 to 1
 

 
  
 Minimum Availability—Have at times during each of the periods
listed below, Availability equal to or greater than the Availability set forth opposite such period in the following schedule: 
  
 
	 Period
 
	  	 Availability
 

	 February 28, 2002 to April 15, 2002
 	  	 $1,000,000
 
	 April 16, 2002 to May 15, 2002
 	  	 $3,000,000
 
	 May 16, 2002 to December 15, 2002
 	  	 $6,000,000
 
	 December 16, 2002, to March 15, 2003
 	  	 $2,000,000
 
	 March 16, 2003, to December 15, 2003
 	  	 $6,000,000
 
	 December 16, 2003, to March 15, 2004
 	  	 $2,000,000
 
	 March 16, 2004, and thereafter
 	  	 $6,000,000
 

 
  
 Borrower, Agent and Lenders agree that the Minimum Availability required by the
preceding two sentences may only be modified or amended with the consent of Borrower, Agent and each Lender. Other financial covenants contained in this Exhibit Q may continue to be amended with the consent of Borrower and Required Lenders.

 

 8 

  
 Minimum EBITDA—Borrower shall achieve EBITDA of Four Hundred Thousand
Dollars ($400,000) or more for the three month period ended March 31, 2002. 
  
 The financial covenants contained in this
Exhibit Q, the Capital Expenditures covenant contained in Section 8.2.8 and the Rentals covenant contained in Section 8.2.13 have been computed on the assumption that the lease transactions contemplated by the Sale and Leaseback Documents are
accounted for as operating leases and not as capital leases. Because such transactions are required by GAAP to be accounted for as capital leases, the covenants contained in this Exhibit Q, Sections 8.2.8 and 8.2.13 shall be modified by
Required Lenders, nunc pro tunc, to reflect such different accounting treatment. Said covenants as so modified by Required Lenders, in the commercially reasonable exercise of their discretion, shall provide, as close as
commercially practical, the same performance tests and expenditures limits as contained herein, adjusted only for the difference in accounting treatment. 
 

 9

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