Document:

Exhibit 10.29

                                   [Execution]

                           AMENDMENT NO. 3 AND CONSENT
                                       TO
                          LOAN AND SECURITY AGREEMENT

                                                       October 8, 2003

Congress Financial Corporation (Southern)
200 Galleria Parkway, Suite 1500
Atlanta, Georgia 30339

            Re:   Loan and Security Agreement, dated October 11, 2000

Ladies and Gentlemen:

      Congress Financial Corporation (Southern) ("Lender") and Valentec Wells,
LLC, formerly known as Valentec International Corporation, LLC ("Valentec"),
Safety Components Fabric Technologies, Inc. ("SCFT"), Automotive Safety
Components International, Inc. ("Automotive International"), Automotive Safety
Components International GmbH & Co. KG ("German Borrower"), Automotive Safety
Components International Limited ("UK Borrower" and together with Valentec,
SCFT, Automotive International and German Borrower, individually each a
"Borrower" and collectively, "Borrowers"), Safety Components International, Inc.
("Safety"), ASCI Holdings Germany (DE), Inc. ("ASCI Germany"), ASCI Holdings
U.K. (DE), Inc. ("ASCI UK"), ASCI Holdings Mexico (DE), Inc. ("ASCI Mexico"),
ASCI Holdings Czech (DE), Inc. ("ASCI Czech"), Automotive Safety Components
International, S.A. de C.V. ("Automotive Safety Mexico") and Automotive Safety
Components International s.r.o. ("Automotive Safety Czech" and together with
Safety, ASCI Germany, ASCI UK, ASCI Mexico, ASCI Czech and Automotive Safety
Mexico, each individually a "Guarantor" and collectively, "Guarantors") have
entered into financing arrangements pursuant to which Lender has made and may
make loans and advances to Borrowers as set forth in the Loan and Security
Agreement, dated October 11, 2000, by and among Lender, Borrowers and
Guarantors, as amended by Amendment No. 1 and Consent to Loan and Security
Agreement, dated as of November 2, 2001 and Amendment No. 2 to Loan and Security
Agreement, dated as of October 11, 2002 (as the same now exists or may hereafter
be amended, modified, supplemented, extended, renewed, restated or replaced, the
"Loan Agreement") and other agreements, documents and instruments referred to
therein or at any time executed and/or delivered in connection therewith or
related thereto, together with this Amendment (all of the foregoing, including
the Loan Agreement, as the same now exist or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced, being collectively
referred to herein as the "Financing Agreements"). Galion, Inc., an Ohio
corporation ("Galion"), ceased to be a Borrower under the Loan Agreement and
Lender agreed to release its security interest in and lien upon the issued and
outstanding stock of Galion and all of the assets

<PAGE>

of Galion as set forth in Consent to Sale of Galion Stock, dated December 20,
2002, by and among Lender, Borrowers, Guarantors and Galion. All capitalized
terms used herein shall have the meaning assigned thereto in the Loan Agreement,
unless otherwise defined herein.

      Borrowers and Guarantors have requested that Lender agree to amend the
Loan Agreement to, among other things, provide for the making of additional
Loans and extend the Renewal Date, and Lender is willing to agree to such
requests subject to the terms and conditions contained herein.

      In consideration of the forgoing and the agreements and covenants
contained herein, and for other good and valuable consideration, the adequacy
and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

      1. Amendments

            (a) Definitions.

                  (i) Amendments to Definitions.

                        (A) The definition of "Applicable Margin" in Section 1.7
of the Loan Agreement is hereby amended by deleting the chart contained therein
and replacing it with the following:

<TABLE>
<CAPTION>
                                          Fixed Charge            Applicable Prime           Applicable
        "Excess Availability             Coverage Ratio             Rate Margin           Eurodollar Margin
        --------------------             --------------             -----------           -----------------
        <S>                              <C>                            <C>                     <C>
        (a) $15,000,000 or               Equal to or greater              0%                    1.75%
            more                         than 2.50 to 1.00

        (b) Equal to or greater          Equal to or greater              0%                    2.00%
            than $10,000,000             than 2.00 to 1.00 but
            but less than                less than 2.50 to
            $15,000,000                  1.00

        (c) Equal to or greater          Equal to or greater            .25%                    2.25%
            than $5,000,000 but          than 1.25 to 1.OO but
            less than                    less than 2.00 to
            $10,000,000                  1.00

        (d) Less than                    Less than 1.25 to              .50%                    2.50%"
            $5,000,000                   1.00
</TABLE>

                        (B) The definition of "Eligible Accounts" in Section
1.34 of the Loan Agreement is hereby amended by:

                                     - 2 -
<PAGE>

                              (1) (x) deleting the reference to "each of TRW and
Autoliv" in clause (v) of Section 1.34(o) of the Loan Agreement replacing it
with "TRW", (y) deleting the reference to "owned" and replacing it with "owed"
and (z) adding a new clause (vi) on to the end of Section 1.34(o) as follows:

                  "and (vi) in the case of Autoliv, thirty-five (35%) percent of
                  all Accounts of Borrowers owed at such time by all Account
                  Debtors;"

                              (2) adding the following new clause (v) on to the
end of such Section as follows:

                  "(v) notwithstanding anything to the contrary set forth in
                  subsection (p) of this Section 1.34, in the case of Breed,
                  Autoliv, TRW and any other Account Debtor to the extent such
                  other Account Debtor is approved in writing by Lender in its
                  sole discretion, and so long as such Accounts are otherwise
                  Eligible Accounts, and such Accounts either (i) meet the
                  requirements of subsection (p) of this Section 1.34 or, (ii)
                  (A) with respect to such Account Debtors not subject to prox
                  dating, such Accounts are not unpaid more than (1) thirty (30)
                  days after the original due date for them, or (2) one hundred
                  twenty (120) days after the date of the original invoice for
                  them and (B) with respect to such Account Debtors subject to
                  prox dating, such Accounts are not unpaid more than (1)
                  forty-five (45) days after the original due date for them, or
                  (2) one hundred thirty-five (135) days after the original
                  invoice date for them."

                        (C) The definition of "Excess Availability" in Section
1.44 of the Loan Agreement is hereby amended by deleting "the amount equal to:
(A) the Maximum Credit (which shall be deemed to be $35,000,000 solely for
purposes of computing the Applicable Margin pursuant to Section 1.7 and the
amount of Excess Availability pursuant to Sections 4.1(i), 6.3(b)(iv) and
9.9(g)(ii) hereof) minus the then outstanding amount of Loans and Letter of
Credit Accommodations provided to the other Borrowers" and replacing it with
"the Revolving Loan Limit of such Borrower."

                        (D) The definition of "Financing Agreements" in Section
1.55 of the Loan Agreement is hereby amended by adding the following immediately
before the period at the end of such Section: ";provided, that, Financing
Agreements shall not include any Hedge Agreements."

                        (E) The definition of "Indebtedness" in Section 1.65 of
the Loan Agreement is hereby amended by deleting the parenthetical ("marked to
market") in clause (h) thereof and adding the following parenthetical at the end
of such clause before the period: "(determined in accordance with procedures
customary in the relevant market and practices of the counterparty under such
agreements)."

                        (F) The definition of "Interest Rate" in Section 1.71 of
the Loan Agreement is hereby amended by deleting such definition in its entirety
and replacing it with the following:

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<PAGE>

                  "1.71 'Interest Rate' shall mean:

                  (a) Subject to clauses (b) and (c) of this definition below:

                  (i) as to Prime Rate Loans consisting of Revolving Loans and
            Existing Term Loans, a rate equal to the Prime Rate,

                  (ii) as to Eurodollar Rate Loans consisting of Revolving Loans
            and Existing Term Loans, a rate equal to two (2.00%) percent per
            annum in excess of the Adjusted Eurodollar Rate (in each case, based
            on the Eurodollar Rate applicable for the Interest Period selected
            by a Borrower as in effect three (3) Business Days after the date of
            receipt by Lender of the request of such Borrower for such
            Eurodollar Rate Loans in accordance with the terms hereof, whether
            such rate is higher or lower than any rate previously quoted to such
            Borrower),

                  (iii) as to the New Term Loan B, a rate equal to three (3%)
            percent per annum in excess of the Prime Rate.

                  (b) Subject to clause (c) of this definition below, the
            Interest Rate payable by Borrowers in respect of Revolving Loans and
            Existing Term Loans (but not the New Term Loan B) shall be increased
            or decreased, as the case may be, (i) as to Prime Rate Loans, to the
            rate equal to the Applicable Margin on a per annum basis in excess
            of the Prime Rate, and (ii) as to Eurodollar Rate Loans, to the rate
            equal to the Applicable Margin on a per annum basis in excess of the
            Adjusted Eurodollar Rate; provided. that, the effective date of any
            such increase or decrease shall be the first day of the second month
            of each fiscal quarter (commencing with the fiscal quarter beginning
            September 28, 2003).

                  (c) Notwithstanding anything to the contrary contained in
            clauses (a) and (b) of this definition, the Applicable Margin
            otherwise used to calculate the Interest Rate for Prime Rate Loans
            and Eurodollar Rate Loans consisting of Revolving Loans and Existing
            Term Loans shall be the highest percentage set forth in the
            definition of the term Applicable Margin for each category of Loans
            (without regard to the amount of Excess Availability or the Fixed
            Charge Coverage Ratio) plus two (2%) percent per annum and the
            Interest Rate for the New Term Loan B shall be a rate equal to five
            (5%) percent per annum in excess of the Prime Rate, at Lender's
            option, (i) for the period (A) from and after the effective date of
            termination or non-renewal hereof until Lender has received full and
            final payment of all outstanding and unpaid Obligations
            (notwithstanding entry of a judgment against a Borrower) and (B)
            from and after the date of the occurrence of an Event of Default for
            so long as such Event of Default is continuing, and (ii) on
            Revolving Loans to any Borrower at any time outstanding in excess of
            the Borrowing Base of such Borrower or the Revolving Loan Limit of
            such Borrower (whether or not such excess(es) arise or are made with
            or without

                                     - 4 -
<PAGE>

                  Lender's knowledge or consent and whether made before or after
                  an Event of Default).

                        (G) The definition of "Obligations" in Section 1.86 of
the Loan Agreement is hereby amended by (i) inserting "(a)" immediately before
"any and all Revolving Loans" and (ii) inserting the following immediately
before the period at the end of such Section:

                  "and (b) for purposes only of Section 5.1 hereof and subject
                  to the priority in right of payment set forth in Section 6.4
                  hereof, all obligations, liabilities and indebtedness of every
                  kind, nature and description owing by any Borrower or
                  Guarantor to an Affiliate of Lender arising under or pursuant
                  to a Hedge Agreement reasonably acceptable to Lender entered
                  into by any Borrower or Guarantor with such Affiliate after
                  the effective date of Amendment No. 3 (and whether or not such
                  counterparty continues to be an Affiliate of Lender after the
                  date of the applicable Hedge Agreement); provided, that, (i)
                  such obligations, liabilities and indebtedness shall only be
                  included within the Obligations if, Lender shall have entered
                  into an agreement, in form and substance satisfactory to
                  Lender, with such Affiliate that is a counterparty to such
                  Hedge Agreement, as acknowledged and agreed to by Borrowers
                  and Guarantors, providing for the delivery to Lender by such
                  counterparty of information with respect to the amount of such
                  obligations and providing for other rights of Lender and such
                  Affiliate in connection with such Hedge Agreement, (ii) in no
                  event shall the party to such Hedge Agreement to whom such
                  obligations, liabilities or indebtedness are owing be deemed a
                  Lender for purposes hereof to the extent of and as to such
                  obligations, liabilities or indebtedness other than for
                  purposes of Section 5.1 hereof and (iii) in no event shall the
                  obligations, liabilities and indebtedness arising under the
                  Hedge Agreements arising prior to the effective date of
                  Amendment No. 3 and listed on Exhibit A to Amendment No. 3
                  constitute Obligations."

                        (H) The definition of "Maximum Credit" in Section 1.80
of the Loan Agreement is hereby deleted in its entirety and replaced with the
following:

                  "1.80 'Maximum Credit' shall mean the amount of US
                  $43,820,000."

                        (I) The definition of "Mortgages" in Section 1.82 of the
Loan Agreement is hereby deleted in its entirety and replaced with the
following:

                        "1.82 'Mortgage' shall mean the Open-End Mortgage and
                  Security Agreement, dated of even date herewith, by SCFT in
                  favor of Lender with respect to the Real Property and related
                  assets of SCFT located in Greenville, South Carolina, as the
                  same now exists or may hereafter be amended, modified,
                  supplemented, extended, renewed, restated or replaced."

                                     - 5 -
<PAGE>

                              (J) The definition of "Reference Bank" in Section
1.103 of the Loan Agreement is hereby amended to delete the reference to "First
Union National Bank" therein and to replace it with "Wachovia Bank, National
Association, its successors or assigns".

                              (K) The definition of "Reserves" in Section 1.105
of the Loan Agreement is hereby amended by inserting immediately before the
period at the end of clause (i) thereof the following: "; or (j) to reflect the
obligations, liabilities or indebtedness (contingent or otherwise) of any
Borrower or Guarantor to any Affiliate of Lender (determined in accordance with
procedures customary in the relevant market and practices of such Affiliate)
arising under or in connection with any Hedge Agreement of any Borrower or
Guarantor with such Affiliate entered into after the effective date of Amendment
No. 3 and not listed on Exhibit A to Amendment No. 3 or as such Affiliate may
otherwise require in connection therewith to the extent that such obligations,
liabilities or indebtedness constitute Obligations."

                              (L) The definition of "Term Promissory Note" in
Section 1.112 of the Loan Agreement is hereby amended by deleting "term
promissory note, dated on or about the date hereof, made by a Borrower" and
replacing it with "term promissory note made by one or more Borrowers".

                  (ii) Additional Definitions. The following terms shall have
the meanings given to them below and the Loan Agreement shall be deemed and is
hereby amended to include, in addition and not in limitation, the following
definitions:

            "Amendment No. 3" shall mean Amendment No. 3 and Consent to Loan and
Security Agreement, dated October 8, 2003, by and among Lender, Borrowers and
Guarantors.

            "Annualized Factor" shall mean, with respect to the Leverage Ratio
for any period, (a) 4,if such period is of one fiscal quarter, (b) 2, if such
period of two fiscal quarters, (c) 4/3, if such period of three fiscal quarters
and (d) 1, if such period is a period of four fiscal quarters.

            "Designated Subsidiary" shall mean ASCI Holdings Germany (DE), Inc.,
a Delaware corporation; provided, that, the foregoing Person shall be a
Designated Subsidiary only if and for so long as such Person is (i) disregarded
for purposes of the calculation of tax liability of Safety and its Subsidiaries
under the Code and (ii) wholly owned, directly or indirectly, by one or more
Subsidiaries of Safety which are not incorporated or formed under the laws of
any State of the United States of America.

            "Excess Cash Flow" shall mean, with respect to any fiscal year, an
amount equal to: (a) EBITDA of Safety and its Subsidiaries for such fiscal year,
minus (b) Capital Expenditures of Safety and its Subsidiaries paid in cash
during such fiscal year, minus (c) Interest Expense of Safety and its
Subsidiaries paid in cash during such fiscal year, minus (d) regularly scheduled
payments (as determined at the beginning of the respective period) of principal
of Indebtedness for borrowed money and Indebtedness with respect to Capital
Leases paid in cash during such fiscal year, minus (e) Taxes of Safety and its
Subsidiaries due and owing and paid in cash in such fiscal year.

                                      - 6 -
<PAGE>

            "Existing German Borrower Term Loan" shall have the meaning set
forth in Section 2.3(a) hereof.

            "Existing German Term Loan Balance" shall have the meaning set forth
in Section 2.3(d) hereof.

            "Existing German Borrower Term Note" shall mean the Term Promissory
Note, dated November __, 2000, made by German Borrower in favor of Lender in the
original principal amount of US$1,328,000, as the same now exists or may
hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced.

            "Existing SCFT Term Loan" shall have the meaning set forth in
Section 2.3(a) hereof.

            "Existing SCFT Term Loan Balance" shall have the meaning set forth
in Section 2.3(b) hereof.

            "Existing SCFT Term Note" shall mean the Term Promissory Note, dated
October 11, 2000, made by SCFT in favor of Lender in the original principal
amount of US$2,700,000, as the same now exists or may hereafter be amended,
modified, supplemented, extended, renewed, restated or replaced.

            "Existing Term Loans" shall have the meaning set forth in Section
2.3(a) hereof.

            "Existing UK Borrower Term Loan" shall have the meaning set forth in
Section 2.3(a) hereof.

            "Existing UK Borrower Term Loan Balance" shall have the meaning set
forth in Section 2.3(c) hereof.

            "Existing UK Borrower Term Note" shall mean the Term Promissory
Note, dated October 11, 2000, made by UK Borrower in favor of Lender in the
original principal amount of US$1,020,000, as the same now exists or may
hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced.

            "Foreign Entities" shall mean all Borrowers and Guarantors which are
incorporated or formed under the laws of a jurisdiction outside of the United
States of America.

            "Funded Indebtedness" shall mean, with respect to Safety and its
Subsidiaries, as of the date of determination thereof (without duplication), (a)
all obligations of Safety or any of its Subsidiaries for borrowed money of any
kind or nature, including funded debt, and with respect to any Hedge Agreements
of any Borrower or Guarantor with an Affiliate of Lender (determined in
accordance with procedures customary in the relevant market and practices of
such Affiliate), regardless of whether the same is evidenced by any note,
debenture, bond or other instrument, (b) all obligations of Safety or any of its
Subsidiaries to pay the deferred purchase price of property or services (other
than current trade accounts payable under normal trade terms and

                                     - 7 -
<PAGE>

which arise in the ordinary course of business), (c) all obligations of Safety
or any of its Subsidiaries to acquire or for the acquisition or use of any fixed
asset, including obligations under Capital Leases (other than, in any such case,
any portion thereof representing interest or deemed interest or payments in
respect of taxes, insurance, maintenance or service), or improvements which are
payable over a period longer than one year, regardless of the term thereof or
the Person or Persons to whom the same are payable, (d) all Indebtedness of
others to the extent guaranteed by Safety or any of its Subsidiaries and (e) all
obligations of Safety or any of its Subsidiaries in respect of letters of
credit, bankers acceptances or similar instruments issued or accepted by banks
or other financial institutions for the account of Safety or any of its
Subsidiaries; provided, that, Funded Indebtedness shall not include any
obligations of Safety or any of its Subsidiaries owing to Safety or any of its
other Subsidiaries.

            "Hedge Agreement" shall mean any agreement that is a rate swap
agreement, basis swap, forward rate agreement, commodity swap, interest rate
option, forward foreign exchange agreement, spot foreign exchange agreement,
rate cap agreement, rate floor agreement, rate collar agreement, currency swap
agreement, cross-currency rate swap agreement, currency option or any other
similar agreement (including any option to enter into any of the foregoing or a
master agreement for any the foregoing together with all supplements thereto)
for the purpose of protecting against or managing exposure to fluctuations in
interest or exchange rates, currency valuations or commodity prices; sometimes
being collectively referred to herein as "Hedge Agreements".

            "Hildesheim Property" shall mean the Real Property of German
Borrower located at Maybachstrasse 7, Hildesheim, Germany.

            "Leverage Ratio" shall mean, for any period, as of the date of
determination thereof, the ratio of (a) the outstanding amount of Funded
Indebtedness of Safety and its Subsidiaries as of the last day of such period to
(b) the Annualized Factor for such period multiplied by EBITDA of Safety and its
Subsidiaries for such period.

            "New Term Loan B" shall mean the term loan made (or to be made) by
Lender to US Borrowers as provided for in Section 2.3(e) hereof.

            "New Term Loan B Limit" shall mean an amount equal to (a)
$4,500,000 less (b) the product of (i) $125,000 multiplied by the number of
months (rounded upward to the nearest full month), if any, that have elapsed
during the period beginning with the date that is the six month anniversary of
the affective date of Amendment No. 3 and ending on the date which the New Term
Loan B is made; provided, that, the "New Term Loan B Limit" shall be $4,500,000
if (i) Borrowers request the New Term Loan B at any time after June 30, 2005,
(ii) Lender has received all of the audited and unaudited consolidated
financials statements of Safety and its consolidated Subsidiaries required to be
delivered to Lender on or prior to the date of such request, in accordance with
Section 9.6(a)(ii) hereof, all in form and substance satisfactory to Lender, and
(iii) (A) if such request is made at any time on or prior to June 30, 2006, the
Adjusted Pre-Tax Income of Safety and its consolidated Subsidiaries shall have
been not less than $8,200,000 for the fiscal year ended March 26, 2005 as
reflected in such audited consolidated

                                     - 8 -
<PAGE>

financial statements and (B) if such request is made at any time after June 30,
2006, the Adjusted Pre-Tax Income of Safety and its consolidated Subsidiaries
shall have been not less than $8,750,000 for the fiscal year ended March 25,
2006 as reflected in such audited financial statements.

            "New Term Loan B Promissory Note" shall mean the promissory note
made by US Borrowers in favor of Lender in connection with the New Term Loan B
made (or to be made) pursuant to Section 2.3(e) hereof, as the same now exists
or may hereafter be amended, modified, supplemented, extended, renewed, restated
or replaced.

            "Restated German Borrower Term Note" shall mean the Amended and
Restated Term Promissory Note made by German Borrower in favor of Lender in the
original principal amount of US$l,144,000, as the same now exists or may
hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced.

            "Restated SCFT Term Note" shall mean the Amended and Restated Term
Promissory Note made by SCFT in favor of Lender in the original principal amount
of US$2,672,000, as the same now exists or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced.

            "Restated Term Notes" shall mean the collective reference to the
Restated SCFT Term Note, the Restated UK Borrower Term Note and the Restated
German Borrower Term Note; each sometimes individually referred to herein as a
"Restated Term Note".

            "Restated UK Borrower Term Note" shall mean the Amended and Restated
Term Promissory Note made by UK Borrower in favor of Lender in the original
principal amount of US$504,000, as the same now exists or may hereafter be
amended, modified, supplemented, extended, renewed, restated or replaced.

            "Revolving Loan Limit" shall mean, as to each Borrower, at any time,
the amount equal to US$35,000,000 minus the outstanding principal amount of the
Revolving Loans and Letter of Credit Accommodations provided to the other
Borrowers.

            "Total Debt" shall mean, on any date, all items of indebtedness or
liabilities which in accordance with GAAP would be included in determining total
liabilities as shown on the liabilities side of a balance sheet of a Person,
excluding any trade accounts payable which are not more than thirty (30) days
past due.

            "US Entities" shall mean all Borrowers and Guarantors which are
incorporated or formed under the laws of a jurisdiction in the United States of
America.

            (b) Revolving Loans.

                  (i) Section 2.l(a) of the Loan Agreement is hereby amended by
deleting "Loan Limit" and replacing it with "Revolving Loan Limit".

                                     - 9 -
<PAGE>

                  (ii) Section 2.1 (c) of the Loan Agreement is hereby amended
by (A) deleting "and (iii)" and replacing it with ", (iii) the aggregate
principal amount of Revolving Loans and Letter of Credit Accommodations
outstanding at any time to each Borrower shall not exceed the lesser of the
Revolving Loan Limit of such Borrower or the Borrowing Base of such Borrower,
(iv) the aggregate principal amount of Loans and Letter of Credit Accommodations
outstanding any time to each Borrower shall not exceed the Loan Limit of such
Borrower and (v) and (B) inserting immediately after "the Maximum Credit as at
any time in effect," the following phrase: "or the aggregate principal amount of
Revolving Loans and Letter of Credit Accommodations outstanding at any time to
each Borrower exceeds the Revolving Loan Limit of such Borrower or the Borrowing
Base of such Borrower,".

            (c) Letter of Credit Accommodations.

                  (i) Section 2.2(b) of the Loan Agreement is hereby amended by
deleting "percent per annum or such daily outstanding balance" and replacing it
with "percent per annum on such daily outstanding balance".

                  (ii) Section 2.2(d) of the Loan Agreement is hereby amended by
deleting "US$3,000,000" and replacing it with "US$5,000,000".

            (d) Term Loans. Section 2.3 of the Loan Agreement is hereby amended
by deleting such Section in its entirety and replacing it with the following:

                  "2.3 Term Loans.

                        (a) Prior to the date of Amendment No. 3, subject to and
                  upon the terms and conditions contained herein, Lender made
                  Term Loans to (i) SCFT in the original principal amount of
                  US$2,700,000 (the "Existing SCFT Term Loan"), (ii) Valentec
                  International in the original principal amount of US$887,000,
                  (iii) UK Borrower in the original principal amount of
                  US$1,020,000 (the "Existing UK Borrower Term Loan") and (iv)
                  German Borrower in the original principal amount of
                  US$1,328,000 (the "Existing German Borrower Term Loan" and,
                  together with the Existing SCFT Term Loan and the Existing UK
                  Borrower Term Loan, the "Existing Term Loans").

                        (b) SCFT hereby acknowledges, confirms and agrees that,
                  as of the date of Amendment No. 3 and immediately before
                  giving effect to Amendment No. 3, SCFT is indebted to Lender
                  for the Obligations evidenced by the Existing SCFT Term Note
                  in the principal amount equal to US$1,080,000 (the "Existing
                  SCFT Term Loan Balance"), plus accrued interest and fees
                  thereon. On the effective date of Amendment No. 3, subject to
                  the terms and conditions contained herein and in the other
                  Financing Agreements, Lender agrees to fund an additional Term
                  Loan to SCFT in the original principal amount of US$1,592,000
                  which, together with the Existing SCFT Term Loan Balance,
                  shall be consolidated and evidenced by and be due and payable
                  pursuant to the terms of the Restated SCFT Term Note.

                                     - 10 -
<PAGE>

                        (c) UK Borrower hereby acknowledges, confirms and agrees
                  that, as of the date of Amendment No. 3, UK Borrower is
                  indebted to Lender for the Obligations evidenced by the
                  Existing UK Borrower Term Note in the principal amount equal
                  to US$313,200 (the "Existing UK Borrower Term Loan Balance"),
                  plus accrued interest and fees thereon. On the effective date
                  of Amendment No. 3, subject to the terms and conditions
                  contained herein and in the other Financing Agreements, Lender
                  agrees to fund an additional Term Loan to UK Borrower in the
                  original principal amount of US$190,800 which, together with
                  the Existing UK Borrower Term Loan Balance, shall be
                  consolidated and evidenced by and be due and payable pursuant
                  to the terms of the Restated UK Borrower Term Note.

                        (d) German Borrower hereby acknowledges, confirms and
                  agrees that, as of the date of Amendment No. 3 and immediately
                  before giving effect to Amendment No. 3, German Borrower is
                  indebted to Lender for the Obligations evidenced by the
                  Existing German Borrower Term Note in the original principal
                  amount equal to US$590,104 (the "Existing German Borrower Term
                  Loan Balance"), plus accrued interest and fees thereon. On the
                  effective date of Amendment No. 3, subject to the terms and
                  conditions contained herein and in the other Financing
                  Agreements, Lender agrees to fund an additional term loan to
                  German Borrower in the original principal amount of US$553,896
                  which, together with the Existing German Borrower Term Loan
                  Balance, shall be consolidated and evidenced by and be due and
                  payable pursuant to the terms of the Restated German Borrower
                  Term Note.

                        (e) Subject to the terms and conditions contained herein
                  (including, without limitation, Section 4.4 hereof) and upon
                  the request of SCFT, Lender agrees to make a one-time Term
                  Loan to US Borrowers on a joint and several basis, in an
                  amount not to exceed US$4,500,000 at any time commencing upon
                  the effective date of Amendment No. 3 to but excluding the
                  Renewal Date, which shall be evidenced by and be due and
                  payable pursuant to the New Term Loan B Promissory Note and
                  shall be secured by all of the Collateral.

                        (f) Each of the Existing Term Loans (as consolidated
                  with the additional Term Loans made in accordance with
                  Sections 2.3(b) through (d) hereof) is (i) evidenced by a
                  Restated Term Note in the original principal amount thereof
                  (as so consolidated), duly executed and delivered by the
                  applicable Borrower, (ii) to be repaid, together with interest
                  and other amounts, in accordance with this Agreement, such
                  Restated Term Note and the other Financing Agreements and
                  (iii) secured by the Collateral. The principal amount of each
                  of the Existing Term Loans (as consolidated with the
                  additional Term Loans made in accordance with Sections 2.3(b)
                  through (d) hereof) shall be repaid in sixty (60) equal and
                  consecutive monthly installments (or earlier as provided
                  herein) payable on the first day of each month commencing
                  November 1, 2003; provided, that, the entire unpaid principal
                  amount of each Existing Term Loan (as so consolidated) and all
                  accrued and unpaid interest thereon shall be due and payable
                  upon the effective

                                     - 11 -
<PAGE>

                  date of termination or non-renewal of the Financing
                  Agreements. The amount of each such monthly installment shall
                  be equal to US$44,533 with respect to the Existing Term Loan
                  (as so consolidated) to SCFT, US$8,400 with respect to the
                  Existing Term Loan (as so consolidated) to UK Borrower and
                  US$19,067 with respect to the Existing Term Loan (as so
                  consolidated) to German Borrower.

                        (g) The principal amount of the New Term Loan B shall be
                  repaid in thirty-six (36) equal and consecutive monthly
                  installments (or earlier as provided herein) in the amount of
                  one-thirty sixth of the original principal amount of the New
                  Term Loan B payable on the first day of each month commencing
                  with the first full month immediately following the date on
                  which the New Term Loan B is made; provided, that, the entire
                  outstanding principal amount of the New Term Loan B and all
                  accrued and unpaid interest thereon shall become due and
                  payable upon the effective date of termination or non-renewal
                  of the Financing Agreements.

                        (h) The Restated SCFT Term Note shall supercede,
                  replace, amend and restate the Existing SCFT Term Note. The
                  Restated UK Borrower Term Note shall supercede, replace, amend
                  and restate the Existing UK Borrower Term Note. The Restated
                  German Borrower Term Note shall supercede, replace, amend and
                  restate the Existing German Borrower Term Note. The amendment
                  and restatement contained in each of the Restated Term Notes
                  shall not, in any manner, be construed to constitute payment
                  of, or impair, limit, cancel or extinguish, or constitute a
                  novation in respect of, any of the Obligations evidenced by or
                  arising under the Financing Agreements, and the liens and
                  security interests securing such Obligations shall not in any
                  manner be impaired, limited, terminated, waived or released."

            (e) Mandatory Prepayments. Section 2.4 of the Loan Agreement is
hereby amended by deleting such Section in its entirety and replacing it with
the following:

                        "2.4 Mandatory Prepayments. Notwithstanding anything to
                  the contrary contained in Section 2.3 hereof, not later than
                  ninety-five (95) days after the end of each fiscal year of
                  Safety and its Subsidiaries, commencing with the fiscal year
                  ending March 27, 2004, Borrowers shall prepay the New Term
                  Loan B in an amount equal to fifty (50%) percent of the Excess
                  Cash Flow for such fiscal year, together with interest to such
                  date on the amount prepaid. Amounts prepaid pursuant to this
                  Section shall be applied to the installments of the New Term
                  Loan B in the inverse order of maturity. Amounts so prepaid
                  may not be reborrowed."

            (f) Interest. Section 3.l(b) of the Loan Agreement is hereby amended
by adding the following sentence at the beginning of such Section: "The New
Term Loan B shall at all times be a Prime Rate Loan".

            (g) Conditions Precedent to New Term Loan B. Section 4 of the Loan
Agreement is hereby amended by adding the following at the end of such Section:

                                     - 12 -
<PAGE>

                        "4.4 Conditions Precedent to New Term Loan B. Unless the
                  New Term Loan B is made on the effective date of Amendment No.
                  3, each of the following is an additional condition precedent
                  to Lender making the New Term Loan B (in addition to any other
                  condition precedent set forth in this Agreement):

                        (a)(i) The sum of (A) the amount of the New Term Loan B
                  requested to be borrowed by Borrowers plus (B) the Total Debt
                  of Safety and its Subsidiaries as set forth in the financial
                  statements most recently delivered by Borrowers to Lender
                  pursuant to Section 9.6(a) hereof, together with the related
                  certification of the chief financial officer of Safety
                  required under Section 9.6(a), shall not exceed (ii) four
                  multiplied by the difference between (A) EBITDA of Safety and
                  its Subsidiaries for the most recently ended twelve-month
                  period as set forth in the financial statements most recently
                  delivered by Borrowers to Lender pursuant to Section 9.6(a)
                  hereof, together with the related certification of the chief
                  financial officer of Safety required under Section 9.6(a)
                  thereof and (B) the Capital Expenditures of Safety and its
                  Subsidiaries during the most recent twelve-month period as set
                  forth in such financial statements;

                        (b) the amount of the New Term Loan B requested to be
                  borrowed by the Borrowers shall not exceed the lesser of (i)
                  ten (10%) percent of the Maximum Credit or (ii) twenty-five
                  (25%) percent of the Adjusted Tangible Net Worth of Safety and
                  its Subsidiaries;

                        (c) on the date the New Term Loan B is borrowed and
                  immediately after giving effect thereto, the aggregate Excess
                  Availability of Borrowers shall not be less than the US Dollar
                  Equivalent of US$10,000,000;

                        (d) if the New Term Loan B is borrowed after the six
                  month anniversary of the effective date of Amendment No. 3,
                  the amount of the New Term Loan B requested to be borrowed by
                  the Borrowers shall not exceed the New Term Loan B Limit; and

                        (e) if the New Term Loan B is borrowed after the six
                  month anniversary of the effective date of Amendment No. 3,
                  Lender shall have received financial projections of Safety and
                  its Subsidiaries (including but not limited to, any purchase
                  order and backlog information as Lender may reasonably
                  request) for the succeeding two year period (prepared on a
                  quarterly basis), which shall be in form and substance
                  satisfactory to Lender, and which demonstrate that Safety and
                  its Subsidiaries will be in compliance with all of the
                  financial covenants set forth in Section 9.16 hereof during
                  such two year period, together with a certificate executed by
                  the Chief Financial Officer of Safety, certifying that such
                  projections indicate that Safety and its Subsidiaries will be
                  in compliance with all of the financial covenants set forth in
                  Section 9.16 hereof during such two year period and that such
                  projections and the assumptions set forth therein are
                  reasonable in

                                     - 13 -
<PAGE>

                  light of all facts and circumstances known to such Chief
                  Financial Officer at the time of the delivery of such
                  projectons to Lender."

            (h) Payments. Section 6.4 of the Loan Agreement is hereby amended by
deleting clauses third and fourth from the second sentence of such Section and
replacing them with the following:

                  "third, to pay or prepay principal due in respect of the Loans
                  and to pay Obligations arising under or pursuant to any Hedge
                  Agreement of Borrowers or Guarantors with an Affiliate of
                  Lender (up to the amount of any then effective Reserve
                  established in respect of such Obligations), on a pro rata
                  basis; fourth, to pay or prepay any other Obligations
                  (excluding Obligations arising under or pursuant to any Hedge
                  Agreement); and fifth, to pay any Obligations arising under or
                  pursuant to any Hedge Agreement between any Borrower or
                  Guarantor and an Affiliate of Lender (except to the extent
                  provided for in clause third above);"

      (i) Collateral Reporting. Section 7.1(d) of the Loan Agreement is hereby
amended by deleting "shipper or Lender" and replacing it with "shipper or
agent."

      (i) Inventory Covenants. Section 7.3(d) of the Loan Agreement is hereby
amended by deleting such Section and replacing it with the following:

                  (d) upon Lender's request, Borrowers shall, at their expense,
                  no more than once in any twelve (12) month period, but at any
                  time or times as Lender may request if an Event of Default
                  shall exist or the aggregate Excess Availability of Borrowers
                  shall be less than the US Dollar Equivalent of US$5,000,000,
                  deliver or cause to be delivered to Lender written reports or
                  appraisals as to the Inventory in form, scope and methodology
                  reasonably acceptable to Lender and by an appraiser acceptable
                  to Lender, addressed to Lender, and upon which Lender is
                  expressly permitted to rely;"

      (k) Subsidiaries. Section 8.1 of the Loan Agreement is hereby amended by
adding the following after the period at the end of such Section: "No Designated
Subsidiary operates any business or owns any material assets other than the
shares of capital stock in its Subsidiaries."

      (l) Financial Statements. (i) Section 9.6 of the Loan Agreement is hereby
amended by deleting clause (a) of such Section in its entirety and replacing it
with the following:

                        "(a) Each Borrower and Guarantor shall, and shall cause
                  any Subsidiary to, keep proper books and records in which true
                  and complete entries shall be made of all dealings or
                  transactions of or in relation to the Collateral and the
                  businesses of Borrowers and Guarantors and their Subsidiaries
                  in accordance with GAAP and Borrowers and Guarantors shall
                  furnish or cause to be furnished to Lender: (i) within thirty
                  (30) days after the end of each fiscal month, monthly
                  unaudited consolidated financial statements and unaudited
                  consolidating financial statements

                                     - 14 -
<PAGE>

                  (including in each case balance sheets and statements of
                  income and loss on a consolidating basis), all in reasonable
                  detail, fairly presenting in all material respects the
                  financial position and the results of the operations of Safety
                  and its consolidated Subsidiaries as of the end of and through
                  such fiscal month, accompanied by a compliance certificate
                  substantially in the form of Exhibit D hereto, along with a
                  schedule in form and substance satisfactory to Lender of the
                  calculations used in determining, as of the end of such month,
                  whether Borrowers and Guarantors are in compliance with the
                  covenants set forth in Section 9.16 hereof, along with a
                  schedule in form and substance satisfactory to Lender of the
                  calculations used in determining the Fixed Charge Coverage
                  Ratio as of the last day of the immediately preceding Test
                  Period and (ii) within ninety five (95) days after the end of
                  each fiscal year, audited consolidated financial statements
                  and unaudited consolidating financial statements of Safety and
                  its consolidated Subsidiaries (including in each case balance
                  sheets, statements of income and loss, statements of cash flow
                  and statements of shareholders' equity), and the accompanying
                  notes thereto, all in reasonable detail, fairly presenting in
                  all material respects the financial position and the results
                  of the operations of Safety and its consolidated Subsidiaries
                  as of the end of and for such fiscal year, together with the
                  opinion of independent certified public or chartered
                  accountants, as appropriate, which accountants shall be an
                  independent accounting firm selected by Borrowers and
                  reasonably acceptable to Lender, that such financial
                  statements have been prepared in accordance with GAAP, and
                  present fairly in all material respects the results of
                  operations and financial condition of Safety and its
                  consolidated Subsidiaries as of the end of and for the fiscal
                  year then ended, accompanied by a compliance certificate
                  substantially in the form of Exhibit D hereto, along with a
                  schedule in form and substance satisfactory to Lender of the
                  calculations used in determining, as of the end of such year,
                  whether Borrowers and Guarantors are in compliance with the
                  covenants set forth in Section 9.16 hereof, along with a
                  schedule in form and substance satisfactory to Lender of the
                  calculations used in determining the Fixed Charge Coverage
                  Ratio as of the last day of the immediately preceding Test
                  Period, along with a schedule in form and substance
                  satisfactory to Lender of the calculations used in determining
                  the amount of Excess Cash Flow for such fiscal year.
                  Notwithstanding anything to the contrary herein, if the
                  outstanding principal amount of the New Term Loan B is zero on
                  the date on which such certification is required to be
                  delivered, then no certification (or related calculation) with
                  respect to the matters set forth in Sections 9.16(b) through
                  (e) hereof shall be required to be delivered pursuant to this
                  Section 9.6(a)."

                  (ii) Section 9.6(d) of the Loan Agreement is hereby amended by
inserting the following phrase immediately before the period at the end of the
first sentence of such Section: "(including, without limitation, information
with respect to Indebtedness permitted under Section 9.9(e) hereof)."

            (m) Sale of Assets.

                                     - 15 -
<PAGE>

                  (i) Section 9.7(c)(ii) of the Loan Agreement is hereby amended
by deleting such clause in its entirety and replacing it with "(ii) the
disposition or transfer (which may include transfers or dispositions to an
Affiliate of Safety subject to the provisions of Section 9.12 hereof) of
worn-out or obsolete Equipment so long as any proceeds are paid to Lender for
application to the Obligations and such dispositions or transfers do not involve
Equipment having an aggregate fair market value in excess of $5,000,000 for all
such Equipment so disposed of or transferred in any fiscal year."

                  (ii) Section 9.7(c)(iv)(A) of the Loan Agreement is hereby
amended by deleting "first, the Term Loans (if any) in the inverse order of
maturity and second, the Revolving Loans" and replacing it with "first, the New
Term Loan B (if any) in the inverse order of maturity, second, the Existing Term
Loans in the inverse order of maturity and third, the Revolving Loans."

                  (iii) Section 9.7(c) of the Loan Agreement is hereby amended
by adding a new Subsection (v) on to the end thereof as follows:

                        "and (v) the voluntary termination by any Borrower or
                  Guarantor of any Hedge Agreement".

            (n) Encumbrances.

                  (i) Section 9.8(f) of the Loan Agreement is hereby amended by
deleting "US$l,000,000" and replacing it with "US$2,000,000".

                  (ii) Section 9.8(i) of the Loan Agreement is hereby amended by
deleting such Section and replacing it with the following:

                        "(i) [Intentionally Deleted]; and"

      (o) Hedge Agreements. Section 9.9 of the Loan Agreement is hereby amended
by deleting clause (e) of such Section and replacing it with the following:

                  (e) Indebtedness of Borrowers or Guarantors or any of their
            respective Subsidiaries under or pursuant to any Hedge Agreement
            entered into in the ordinary course of business; provided, that, (i)
            such arrangements are with banks or other financial institutions
            that have combined capital and surplus and undivided profits of not
            less than the US Dollar Equivalent of US$250,000,000 and are not for
            speculative purposes and (ii) such Indebtedness shall be unsecured
            except to the extent such Indebtedness constitutes Obligations as
            provided herein;

            (p) Indebtedness.

                  (i) Section 9.9(g) of the Loan Agreement is hereby amended by
deleting such Section and replacing it with the following:

                                     - 16 -
<PAGE>

                  "(g) [Intentionally Deleted]; and"

                  (ii) Section 9.9 of the Loan Agreement is hereby amended by
(a) deleting the period at the end of the clause (h) thereof and replacing it
with ";and" and (b) adding at the end of such Section a new clause (i) as
follows:

                        (i) the unsecured Indebtedness of any Borrower or
                  Guarantor permitted under Sections 9.10(s) and 9.lO(t)
                  hereof."

            (q) Loans, Investments and Guarantees.

                  (i) Section 9.10 of the Loan Agreement is hereby amended by
deleting clause (j) of such Section and replacing it with the following:

                        "(i) any investments of any Borrower, Guarantor or any
                  of their respective Subsidiaries in Hedge Agreements permitted
                  under Section 9.9(e); provided, that, such arrangements are
                  with banks and other financial institutions that have combined
                  capital and surplus and undivided profits of not less than the
                  US Dollar Equivalent of US$250,000,000 and are not for
                  speculative purposes;"

                  (ii) Section 9.10(n) of the Loan Agreement is hereby amended
by (A) deleting "$500,000" and replacing it with "the US Dollar Equivalent of
US$5,000,000".

                  (iii) Section 9.10 of the Loan Agreement is hereby amended by
(1) deleting the period at the end of clause (9) thereof and replacing it with a
semicolon and (2) adding at the end of such Section the following:

                        "(r) any unsecured guaranties by Safety in favor of
                  Wachovia Bank, National Association or any of its Affiliates
                  of any unsecured Indebtedness of any Borrower or other
                  Guarantor owing to Wachovia Bank, National Association or any
                  of its Affiliates to the extent such Indebtedness is permitted
                  under Section 9.9(e) hereof;

                        (s) investments after the date hereof by any Borrower or
                  Guarantor by capital contribution in any direct wholly-owned
                  Subsidiary of such Borrower or Guarantor, or the formation or
                  acquisition after the date hereof by any Borrower or Guarantor
                  of any direct wholly-owned Subsidiary of such Borrower or
                  Guarantor after the date hereof; provided, that, as to any
                  such investments, or the formation or acquisition of any such
                  Subsidiary, each of the following conditions is satisfied as
                  determined by Lender:

                              (i) as of the date of any such investment or the
                  formation or acquisition of such Subsidiary or any payments in
                  connection with the formation or acquisition of such
                  Subsidiary, and in each case after giving effect thereto, no
                  Event of Default shall exist or have occurred and be
                  continuing,

                                     - 17 -
<PAGE>

                              (ii) as of the date of any such investment or the
                  formation or acquisition of such Subsidiary or any payments in
                  connection with the formation or acquisition of such
                  Subsidiary, and in each case after giving effect thereto, the
                  average aggregate Excess Availability of Borrowers for the
                  immediately preceding ninety (90) days shall have been not
                  less than the US Dollar Equivalent of US$7,000,000 and as of
                  the date of any such investment or formation or acquisition or
                  any payment in connection therewith and after giving effect
                  thereto, the aggregate Excess Availability of Borrowers shall
                  be not less than the US Dollar Equivalent of US$7,000,000,

                              (iii) the Person receiving such investment or the
                  Subsidiary formed or acquired, as the case may be, shall be
                  engaged in a business substantially related, ancillary or
                  complementary to the business of Borrowers or Guarantors
                  permitted in this Agreement,

                              (iv) in the case of an investment by capital
                  contribution, at Lender's option, the original stock
                  certificate or other instrument evidencing such capital
                  contribution (or such other evidence as may be issued in the
                  case of a limited liability company or an entity incorporated
                  or formed under the laws of a jurisdiction outside of the
                  United States of America), if any, shall be promptly delivered
                  to Lender, together with such stock power, assignment or
                  endorsement as Lender may reasonably request, and promptly
                  upon Lender's request, the Borrower or Guarantor making such
                  investment shall execute and deliver to Lender a pledge and
                  security agreement, in form and substance satisfactory to
                  Lender, granting to Lender a first priority pledge of,
                  security interest in and lien upon all (which, in the case of
                  a pledge subject to the provisions of Section 5.2(ii), shall
                  not exceed sixty-five (65%) percent) of the issued and
                  outstanding shares of such stock or other instrument or
                  interest (and, in the case of a limited liability company or
                  an entity incorporated or formed under the laws of a
                  jurisdiction outside of the United States of America, take
                  such other actions as Lender shall require with respect to
                  Lender's security interests therein); provided, that, any
                  Person which is not incorporated or formed under the laws of
                  any State of the United States of America or any Designated
                  Subsidiary shall not be liable for, or be required to execute
                  a guarantee of, nor be deemed a guarantor of, the Obligations
                  of any US Borrower nor shall any of such Person's assets
                  secure the Obligations of any other Borrower or Obligor except
                  that this proviso shall not preclude any Subsidiary of Safety
                  from guaranteeing, and being a guarantor of, and pledging its
                  assets to secure, the Obligations of its direct or indirect
                  Subsidiaries and any Subsidiary of Safety which is not
                  incorporated under the laws of any State of the United States
                  of America,

                              (v) in the case of the formation or acquisition by
                  a Borrower or Guarantor of any Subsidiary, as to any such
                  Subsidiary, (A) the Borrower or Guarantor forming such
                  Subsidiary shall cause any such Subsidiary to execute and
                  deliver to Lender, the following (each in form and substance
                  reasonably satisfactory to Lender), (1) an absolute and
                  unconditional guarantee of payment of the Obligations, (2) a
                  security or similar agreement granting to Lender a first
                  priority security interest and lien (except as otherwise
                  consented to in writing by Lender) upon all of the assets of
                  any such

                                     - 18 -
<PAGE>

                  Subsidiary, and (3) such other agreements, documents and
                  instruments as Lender may reasonably require, including, but
                  not limited to, supplements and amendments hereto and other
                  loan agreements or instruments evidencing Indebtedness of such
                  new Subsidiary to Lender and (B) the Borrower or Guarantor
                  forming such Subsidiary shall (1) execute and deliver to
                  Lender, a pledge and security agreement, in form and substance
                  reasonably satisfactory to Lender, granting to Lender a first
                  priority pledge of and lien on all (or, in the case of a
                  pledge subject to the provisions of Section 5.2(ii), 65%) of
                  the issued and outstanding shares of Capital Stock of any such
                  Subsidiary, and (C) deliver the original stock certificates
                  evidencing such shares of Capital Stock (or such other
                  evidence as may be issued in the case of a limited liability
                  company or an entity incorporated or formed under the laws of
                  a jurisdiction outside of the United States of America),
                  together with stock powers with respect thereto duly executed
                  in blank (or the equivalent thereof in the case of a limited
                  liability company in which such interests are certificated or
                  an entity incorporated or formed under the laws of a
                  jurisdiction outside of the United States of America), or
                  otherwise take such actions as Lender shall reasonably require
                  with respect to Lender's security interests therein);
                  provided, that, in no event shall any Person which is not
                  incorporated or formed under the laws of a jurisdiction in the
                  United States of America or any Designated Subsidiary be
                  required to guaranty or pledge its assets to secure the
                  Obligations of US Borrowers,

                              (vi) the aggregate amount paid or payable by
                  Borrowers and Guarantors in connection with any such
                  investment, formation or acquisition, plus the aggregate
                  amount paid or payable by Borrowers or Guarantors in
                  connection with the purchase of any assets or property
                  permitted under Section 9.1O(t) hereof, shall not exceed (A)
                  the US Dollar Equivalent of US$5,000,000 in cash during any
                  fiscal year plus (B) the US Dollar Equivalent of US$2,000,000
                  during any fiscal year in the form of unsecured promissory
                  notes issued by Borrowers and Guarantors incurred in
                  connection with such investments, formations, acquisitions
                  under this Section 9.1O(s) or purchases permitted under
                  Section 9.10(t) hereof, so long as such unsecured promissory
                  notes shall be on terms and conditions in all respects
                  acceptable to Lender and Borrowers and Guarantors shall
                  deliver such further information, and any agreements,
                  documents and instruments with respect to such unsecured
                  promissory notes as Lender may reasonably request, and

                              (vii) Lender shall have received (A) not less than
                  six (6) Business Days' prior written notice thereof setting
                  forth in reasonable detail the nature and terms thereof, (B)
                  true, correct and complete copies of all material agreements,
                  documents and instruments relating thereto and (C) such other
                  information with respect thereto as Lender may reasonably
                  request; and

                        (t) the purchase by any Borrower or Guarantor of all or
                  a substantial part of the assets or property (other than
                  Capital Stock) of any Person, provided, that, each of the
                  following conditions is satisfied as determined by Lender:

                                     - 19 -
<PAGE>

                              (i) as of the date of such purchase and after
                  giving effect thereto, no Event of Default shall exist or have
                  occurred and be continuing,

                              (ii) as of the date of any payment in connection
                  with such purchase and after giving effect thereto, the
                  average aggregate Excess Availability of Borrowers for the
                  immediately preceding ninety (90) days shall have been not
                  less than the US Dollar Equivalent of US$7,000,000 and as of
                  the date of any such payment and after giving effect thereto,
                  the aggregate Excess Availability of Borrowers shall be not
                  less than the US Dollar Equivalent of US$7,000,000,

                              (iii) Lender shall have received not less than six
                  (6) Business Days' prior written notice of the proposed
                  purchase and such information with respect thereto as Lender
                  may reasonably request, including (A) the proposed date and
                  amount of such purchase, (B) a proposed list and description
                  of the assets to be purchased, and (C) the total proposed
                  purchase price for the assets to be purchased (and the terms
                  of payment of such purchase price),

                              (iv) promptly upon Lender's request, the Borrower
                  or Guarantor purchasing such assets shall deliver, or cause to
                  be delivered to Lender, true, correct and complete copies of
                  all material agreements, documents and instruments relating to
                  such purchase,

                              (v) the assets being acquired by any Borrower or
                  Guarantor shall be substantially consistent with, and related,
                  ancillary or complementary to, the business of Borrowers or
                  Guarantors permitted in this Agreement,

                              (vi) the assets acquired by any Borrower or
                  Guarantor shall be free and clear of any security interest,
                  mortgage, pledge, lien, charge or other encumbrance (other
                  than those permitted in this Agreement) and Lender shall have
                  received evidence satisfactory to it of the same,

                              (vii) the acquisition by any Borrower or Guarantor
                  of such assets shall not violate in any material respect any
                  law or regulation or any order or decree of any court or
                  Governmental Authority and shall not and will not conflict in
                  any material respect with or result in the breach of, or
                  constitute a default under, any material agreement, document
                  or instrument to which such Borrower or Guarantor or any
                  Affiliate is a party or may be bound, or result in the
                  creation or imposition of, or the obligation to grant, any
                  lien, charge or encumbrance upon any of the property of such
                  Borrower or Guarantor or violate any provision of the
                  certificate of incorporation, by-laws, certificate of
                  formation, operating agreement or other organizational
                  documentation of such Borrower or Guarantor,

                              (viii) such purchase shall be in a bona fide arms'
                  length transaction with a person that is not an Affiliate of
                  any Borrower or Guarantor,

                                     - 20 -
<PAGE>

                              (ix) no Borrower or Guarantor shall become
                  obligated with respect to any Indebtedness, nor shall any of
                  its property become subject to any security interest or lien,
                  pursuant to such acquisition unless such Borrower or Guarantor
                  could incur such Indebtedness or create such security interest
                  or lien hereunder or under the other Financing Agreements;
                  provided, that, Borrowers or Guarantors may incur unsecured
                  Indebtedness as evidenced by promissory notes to the seller of
                  the assets being acquired, in the aggregate amount in any
                  fiscal year not to exceed the US Dollar Equivalent of
                  US$2,000,000 (minus any unsecured Indebtedness incurred
                  pursuant to Section 9.1O(s)(vi) hereof) so long as such
                  unsecured Indebtedness is on terms and conditions in all
                  respects acceptable to Lender and Borrowers and Guarantors
                  shall deliver such further information, and any agreements,
                  documents and instruments with respect to such Indebtedness as
                  Lender may reasonably request,

                              (x) Lender shall have received, in form and
                  substance satisfactory to Lender, (A) evidence that Lender has
                  valid and perfected security interests in and liens upon all
                  purchased assets, (B) UCC financing statements or other
                  similar registrations, (C) all Collateral Access Agreements
                  and other consents, waivers, acknowledgments and other
                  agreements from third persons which Lender may reasonably deem
                  necessary or desirable in order to permit, protect and perfect
                  its security interests in and liens upon the assets purchased,
                  (D) the agreement of the seller consenting to the collateral
                  assignment by the Borrower or Guarantor purchasing such assets
                  of all rights and remedies and claims for damages of such
                  Borrower or Guarantor relating to the Collateral under the
                  agreements, documents and instruments relating to such
                  acquisition and (E) such other agreements, documents and
                  instruments as Lender may reasonably request in connection
                  therewith,

                              (xi) the aggregate amount paid or payable by
                  Borrowers and Guarantors in connection with any such purchase,
                  plus the aggregate amount paid or payable in connection with
                  any investment, formation or acquisition permitted under
                  Section 9.10(s) hereof, shall not exceed (A) the US Dollar
                  Equivalent of US$5,000,000 in cash during any fiscal year plus
                  (B) the US Dollar Equivalent of US$2,000,000 during any fiscal
                  year in the form of unsecured promissory notes issued by
                  Borrowers and Guarantors incurred in connection with such
                  investments, formations, acquisitions under Section 9.10(s)
                  hereof or purchases under this Section 9.lO(t), so long as
                  such unsecured promissory notes shall be on terms and
                  conditions in all respects acceptable to Lender and Borrowers
                  and Guarantors shall deliver such further information, and any
                  agreements, documents and instruments with respect to such
                  unsecured promissory notes as Lender may reasonably request,
                  and

                              (xii) in no event shall any Accounts or Inventory
                  so acquired by any Borrower pursuant to any such purchase be
                  deemed Eligible Accounts or Eligible Inventory unless and
                  until Lender, at its option, shall have conducted a field
                  examination with respect thereto (and at Lender's option, at
                  Borrowers' expense, obtained an appraisal of such Inventory by
                  an appraiser reasonably acceptable to Lender and in form,
                  scope and methodology reasonably acceptable to Lender and
                  addressed to Lender and upon

                                     - 21 -
<PAGE>

                  which Lender is expressly permitted to rely, which appraisal
                  shall be in addition to any appraisals which Lender may obtain
                  pursuant to Section 7.3 hereof) and then only to the extent
                  the criteria for Eligible Accounts and Eligible Inventory set
                  forth herein are satisfied with respect thereto in accordance
                  with this Agreement (or such other or additional criteria as
                  Lender may, at its option, establish with respect thereto in
                  accordance with this Agreement and subject to such Reserves as
                  Lender may establish in accordance with this Agreement), and
                  upon the request of Lender the Accounts and Inventory acquired
                  by such Borrower or Guarantor pursuant to such purchase shall
                  at all times after such acquisition be separately identified
                  and reported to Lender in a manner satisfactory to Lender."

            (r) Dividends and Redemptions. Section 9.11 of the Loan Agreement is
hereby amended by deleting "any Subsidiary of a Borrower or Guarantor may pay
dividends or other distributions to such Borrower or Guarantor" and replacing it
with the following:

                  "for the following:

                        (a) any Subsidiary of a Borrower or Guarantor may pay
                  dividends or other distributions to such Borrower or
                  Guarantor;

                        (b) not later than thirty (30) days after the effective
                  date of Amendment No. 3, Safety may pay cash dividends, from
                  funds legally available therefor, to its shareholders and may
                  repurchase shares of its Capital Stock for cash from its
                  shareholders, provided, that, with respect to the payment of
                  such dividend or the payment in respect of such repurchase (A)
                  as of the date of such payment and after giving effect
                  thereto, no Event of Default shall have occurred and be
                  continuing, (B) as of the date of any such payment and after
                  giving effect thereto, and after giving effect to all other
                  Loans and financial accommodations to be provided on the
                  effective date of Amendment No. 3, the aggregate Excess
                  Availability of Borrowers shall not be less than the US Dollar
                  Equivalent of US$10,000,000 and (C) such dividend or
                  repurchase is not violation of applicable law or any agreement
                  to which Safety is a party or by which Safety is bound; and

                        (c) not earlier than one hundred (100) days after the
                  end of each fiscal year of Safety and its Subsidiaries,
                  commencing with the fiscal year ending March 26, 2005, Safety
                  may pay cash dividends, from funds legally available therefor,
                  to its shareholders and may repurchase shares of its Capital
                  Stock for cash from its shareholders in an aggregate amount
                  not to exceed US$4,500,000 (or, if the outstanding principal
                  amount of the New Term Loan B is greater than zero,
                  US$1,000,000) during any fiscal year; provided, that, with
                  respect to the payment of any such dividend or the payment in
                  respect of any such repurchase (A) as of the date of any such
                  payment and after giving effect thereto, no Event of Default
                  shall have occurred and be continuing, (B) as of the date of
                  any such payment and after giving effect thereto, the
                  aggregate Excess Availability of Borrowers shall not be less
                  than the US Dollar Equivalent of US$7,000,000 (or, if the
                  outstanding amount of the New

                                     - 22 -
<PAGE>

                  Term Loan B is greater than zero, US$l0,000,000) and the
                  aggregate Excess Availability of Borrowers for each of the
                  ninety consecutive days prior to the date of any such payment
                  shall not be less than the US Dollar Equivalent of
                  US$7,000,000 (or, if the outstanding principal amount of the
                  New Term Loan B is greater than zero, US$10,000,000) and (C)
                  such dividend or repurchase is not in violation of applicable
                  law or any agreement to which Safety is a party or by which
                  Safety is bound."

            (s) Financial Covenants. Section 9.16 of the Loan Agreement is
hereby amended by deleting such Section in its entirety and replacing it with
the following:

                  "9.16 Financial Covenants.

                        (a) Adjusted Tangible Net Worth. Notwithstanding
                  anything to the contrary contained in the Net Worth Adjustment
                  Letter, dated October 11, 2000, by and among Borrowers,
                  Guarantors and Lender, Safety and its Subsidiaries shall at
                  all times maintain Adjusted Tangible Net Worth of not less
                  than US$43,200,000.

                        (b) EBITDA. Safety and its Subsidiaries shall not, for
                  any period set forth below (each, a "Section 9.16(b) Test
                  Period"), permit their EBITDA, on a consolidated basis, to be
                  less than the amount set forth below opposite such Section
                  9.16(b) Test Period, provided, that, if the outstanding
                  principal amount of the New Term Loan B is zero on the last
                  day of any 9.16(b) Test Period, then Safety and its
                  Subsidiaries shall not be required to comply with the terms of
                  this Section 9.16(b) for such Section 9.16(b) Test Period:

                         Period                            Minimum EBITDA
                         ------                            --------------
                    09/28/03 - 12/27/03                      $4,200,000

                    09/28/03 - 3/27/04                       $9,700,000

                    09/28/03 - 6/26/04                       $15,400,000

                    09/28/03 - 9/25/04                       $18,100,000

                    12/28/03 - 12/25/04                      $18,100,000

                    03/28/04 - 3/26/05                       $18,100,000

                                     - 23 -
<PAGE>

                    06/27/04 - 06/25/05 and each             $19,300,000
                    twelve month period ending on
                    the last day of each fiscal quarter
                    thereafter

                        (c) Fixed Charge Coverage Ratio. The Fixed Charge
                  Coverage Ratio, for each twelve-month period ending on the
                  last day of any fiscal quarter, commencing with the quarter
                  ending on December 27, 2003 (each, a "Section 9.16(c) Test
                  Period"), shall not be less than 1:00 to 1:00; provided, that,
                  if the outstanding principal amount of the New Term Loan B is
                  zero on the last day of any Section 9.16(c) Test Period, then
                  Safety and its Subsidiaries shall not be required to comply
                  with the terms of this Section 9.16(c) for such Section
                  9.16(c) Test Period.

                        (d) Leverage Ratio. The Leverage Ratio, for each
                  twelve-month period ending on the last day of each fiscal
                  quarter, commencing with the quarter ending on December 27,
                  2003 (each, a "Section 9.16(d) Test Period"), shall not be
                  greater than 2.45:l.00; provided, that, if the outstanding
                  principal amount of the New Term Loan B is zero on the last
                  day of any 9.16(d) Test Period, then Safety and its
                  Subsidiaries shall not be required to comply with the terms of
                  this Section 9.16(d) for such Section 9.16(d) Test Period.

                        (e) Capital Expenditures. Safety and its Subsidiaries
                  shall not, directly or indirectly, make (whether through
                  Capital Leases, purchases or otherwise) Capital Expenditures
                  in an aggregate amount in excess of the US Dollar Equivalent
                  of US$15,000,000 in any fiscal year, beginning with the fiscal
                  year ending March 27, 2004; provided, that, (i) Safety and its
                  Subsidiaries shall not, directly or indirectly, make (whether
                  through Capital Leases, purchases or otherwise) Capital
                  Expenditures in an aggregate amount in excess of the US Dollar
                  Equivalent of US$20,000,000 in any two (2) consecutive fiscal
                  years, and (ii) if the outstanding principal amount of the New
                  Term Loan B is zero on the last day of any fiscal year, then
                  Safety and its Subsidiaries shall not be required to comply
                  with the terms of this Section 9.16(e) for such fiscal year.

                        (f) Notwithstanding anything to the contrary above, if
                  an Event of Default occurs as a result of the failure to
                  comply with Sections 9.16(b) through (d) hereof for any
                  Section 9.16(b) Test Period, Section 9.16(c) Test Period or
                  Section 9.16(d) Test Period (each, a "Section 9.16 Test
                  Period") and Borrowers and Guarantors repay the entire
                  outstanding principal amount New Term Loan B and any other
                  Obligations arising in connection therewith in cash or other
                  immediately available funds within fifteen (15) Business Days
                  of the last day of such Section 9.16 Test Period, and no other
                  Event of Default or act, condition or event which with notice
                  or passage of time or both would constitute an Event of
                  Default shall exist or have occurred and be continuing (after
                  giving effect to such repayment of New Term Loan B or
                  otherwise) as of such repayment date, then Lender shall

                                     - 24 -
<PAGE>

                  promptly provide Borrowers and Guarantors with a written
                  waiver of the Events of Default arising as a result of the
                  failure of Safety and its Subsidiaries to comply with the
                  financial covenants set forth in Sections 9.16(b) through (d)
                  hereof for such Section 9.16 Test Period."

            (t) Designated Subsidiaries. Section 9 of the Loan Agreement is
hereby amended by adding the following new Section 9.25 at the end thereof:

                  "9.25 Designated Subsidiaries. Borrowers and Guarantors shall
                  not permit any Designated Subsidiary to operate any business
                  or own any material assets other than the shares of capital
                  stock in its subsidiaries.

            (u) Remedies.

                  (i) Section 10.2(b)(i) of the Loan Agreement is amended and
                  restated as follows:

                  "(i) accelerate the payment of Obligations (other than the
                  Obligations set forth in Section 1.86(b) hereof, which shall
                  become due and payable in accordance with the applicable Hedge
                  Agreement) and demand immediate payment thereof to Lender
                  (provided, that, upon the occurrence of any Event of Default
                  described in Section 10.1(g) and 10.1(h), all Obligations
                  (other than the Obligations set forth in Section 1.86(b)
                  hereof which shall become due and payable in accordance with
                  the applicable Hedge Agreement) shall automatically become
                  immediately due and payable,"

                  (ii) Section 10.2(b) of the Loan Agreement is hereby amended
to add a new subsection (viii) at the end of the first sentence before the
period:

                  "and/or (viii) send to any counterparty under a Hedge
                  Agreement a notice that such counterparty should only follow
                  the instructions of Lender with respect to such Hedge
                  Agreement."

            (v) Amendments and Waivers. Section 11.3 of the Loan Agreement is
hereby amended to add the following provision at the end of the first sentence
of such Section:

                  "provided, that, any amendment to the priority of the
                  application of payments set forth in Section 6.4 hereof which
                  would have the effect of further subordinating the obligations
                  and liabilities of any Borrower or Guarantor to any Affiliate
                  of Lender which constitute Obligations must be consented to by
                  such Affiliate of Lender."

            (w) Term. Section 12.l(a) of the Loan Agreement is hereby amended by
(a) deleting "ending on October 9, 2003" and replacing it with "ending on
October 8, 2006" and (b) adding the following immediately before the period at
the end of the third sentence of such Section: "and for any Obligations arising
under or pursuant to any Hedge Agreement between any Borrower or

                                     - 25 -
<PAGE>

Guarantor and any Affiliate of Lender in such amounts as the other party to such
Hedge Agreement may require (unless such Obligations arising under or pursuant
to any Hedge Agreement are paid in full in cash and terminated in a manner
satisfactory to such other party).".

            (x) Early Termination Fee. (i) Section 12.l(c) of the Loan Agreement
is hereby amended by deleting the chart contained therein and replacing it with
the following:

<TABLE>
<CAPTION>
                    "Amount                                                Period
                    -------                                                ------
<S>                                                        <C>
                    (i)   One and one-half (1 1/2%)        From the date of the initial Loan
                          percent of                       hereunder to and excluding October 8, 2004
                          the Maximum Credit

                    (ii)  three-quarters of one (3/4)      From October 8, 2004 to and excluding
                          (1%) percent of the Maximum      October 8, 2005
                          Credit

                    (iii) one-half of one (1/2%) percent   From October 8, 2005 to June 29, 2006
                          of the Maximum Credit            or if the term of this Agreement is
                                                           extended, at any time prior to the one
                                                           hundredth day before the end of the then
                                                           current term"
</TABLE>

            (ii) Section 12.1 of the Loan Agreement is hereby amended by adding
at the end thereof a new clause (d) as follows:

                  "(d) Notwithstanding anything to contrary contained in Section
            12.l(c) above, in the event of the termination of this Agreement by
            Borrowers and the full and final repayment of all of the Obligations
            and the receipt by Lender of cash collateral all as provided in
            Section 12.l(a) above, if such repayment is either (i) made with the
            proceeds of initial loans and advances to Borrowers pursuant to a
            revolving credit facility provided by Wachovia Bank, National
            Association or its Affiliates (or for which Wachovia Bank, National
            Association or one of its Affiliates is acting as agent) to
            Borrowers to replace the financing arrangements provided for herein
            or (ii) made in connection with a transfer or an acquisition
            described in clause (a) or (c) of the definition of Change of
            Control set forth in Section 1.21 of this Agreement and Lender has
            failed to consent to such transfer or acquisition within thirty (30)
            days after Lender has received a written request from Safety for
            such consent (together with such information with respect thereto as
            Lender shall reasonably request), then Borrowers shall not be
            required to pay the early termination fee provided for in Section
            12.l(c) above."

            (y) Exhibits to Loan Agreement. The Loan Agreement is hereby amended
by adding at the end thereof a new Exhibit D to the Loan Agreement in the form
of Exhibit B attached hereto.

                                     - 26 -
<PAGE>

            (z) Schedules to Loan Agreement. The Loan Agreement is hereby
amended by deleting Schedules 6.6, 8.4, 8.7(b), 8.7(c), 8.8, 8.10 and 8.11 and
replacing each with the information set forth in Exhibit C attached hereto.

            (aa) Information Certificates. The Information Certificates of each
Borrower and Guarantor, which are annexed to the Loan Agreement as Exhibit A,
are hereby amended as provided in Exhibit D attached hereto.

            (ab) Wachovia. All references to the phrase "First Union National
Bank or one if its affiliates" or the phrase "First Union National Bank or any
of its affiliates" in the Loan Agreement shall be amended by replacing each such
reference with "Wachovia Bank, National Association or its successors or assigns
or any of their respective Affiliates".

      2. Consent.

            (a) Subject to the terms and conditions contained herein,
notwithstanding anything to the contrary set forth in Section 9.10 of the Loan
Agreement, Lender hereby consents to (i) the formation by UK Borrower of a
wholly owned subsidiary, Automotive Safety Components International RO S.R.L., a
company organized under the laws of Romania (the "New Romanian Subsidiary") and
(ii) the investments made by Borrowers and Guarantors in the New Romanian
Subsidiary to the extent set forth in Exhibit E attached hereto.

            (b) Subject to the terms and conditions contained herein,
notwithstanding anything to the contrary sent forth in Section 9.9 of the Loan
Agreement, Lender hereby consents to the repayment by German Borrower of the
entire amount of the secured Indebtedness owing to Deutsche Bank, in the
aggregate amount not to exceed $1,800,000, which Indebtedness is secured by the
Hildesheim Property, provided, that, (i) such repayment shall have been made on
or prior to February 15, 2004, (ii) Lender shall have received all agreements,
documents and instruments related directly or indirectly to such repayment and
any other information requested by Lender, each in form and substance
satisfactory to Lender, (iii) Lender shall have received evidence, in form and
substance satisfactory to Lender, that Deutsche Bank is releasing any lien or
security interest in or upon the assets or properties of any Borrower or
Guarantor and any claims against such persons in exchange for such repayment,
(iii) on the date of any such repayment and after giving effect thereto, the
aggregate Excess Availability of Borrowers shall be not less than the US Dollar
Equivalent of US$7,000,000, (iv) on the date of the repayment and after giving
effect thereto, no Event of Default or act, condition or event shall exist or
have occurred which with notice or passage of time or both shall constitute an
Event of Default, and (v) nothing herein shall be deemed to be a consent by
Lender to any lien, security interest, encumbrances on, or any sale, assignment,
lease, transfer, abandonment or other disposition of, the Hildesheim Property
(other than the existing lien in favor of Deutsche Bank), or any new
Indebtedness of German Borrower secured by the Hildesheim Property or any
refinancing of the existing Indebtedness owed to Deutsche Bank as of the date
hereof.

      3. Representations. Warranties and Covenants. Each Borrower and Guarantor,
jointly and severally, represents, warrants and covenants with and to Lender as
follows, which

                                     - 27 -
<PAGE>

representations, warranties and covenants are continuing and shall survive the
execution and delivery hereof, the truth and accuracy of, or compliance with
each, together with the representations, warranties and covenants in the other
Financing Agreements, being a continuing condition of the making or providing of
any Loans or Letter of Credit Accommodations by Lender to Borrowers:

            (a) neither the execution and delivery of this Amendment, or the
documents, agreements or instruments executed or delivered in connection
therewith or related thereto, nor the consummation of the transactions herein or
therein contemplated, nor compliance with the provisions hereof or thereof are
in contravention of any law or regulation or any order or decree of any court or
Governmental Authority applicable to Borrowers or Guarantors or any of their
respective Subsidiaries in any respect, or conflict with or result in the breach
of, or constitutes a default in any respect under any mortgage, deed of trust,
security agreement, agreement or instrument to which any Borrower or Guarantor
is a party or may be bound, or violates any provision of the Certificate of
Incorporation or By-Laws (or similar organizational documents) of any Borrower
or Guarantor;

            (b) this Amendment and each other document, agreement or instrument
executed and/or delivered by any Borrower and Guarantor in connection herewith
(collectively, together with this Amendment, the "Amendment Documents") have
been duly authorized, executed and delivered by all necessary action on the part
of each Borrower and Guarantor which is a party hereto and thereto and, if
necessary, their respective equity holders, and the agreements and obligations
of each Borrower and Guarantor contained herein and therein constitute legal,
valid and binding obligations of each Borrower and Guarantor enforceable against
such entities in accordance with their respective terms, except as such
enforceability may be limited by bankruptcy, insolvency, moratorium or similar
laws limiting creditors' rights generally and by general equitable principles;

            (c) no consent, approval or other action of, or filing with or
notice to any Governmental Authority is required in connection with the
execution, delivery and performance of any of the Amendment Documents by any
Borrower or Guarantor;

            (d) none of the transactions contemplated by this Amendment No. 3 or
the other Amendment Documents is in contravention of any applicable law, or the
terms of any material agreement to which any Borrower or Guarantor is a party or
by which any property of any Borrower or Guarantor is bound;

            (e) except as set forth in the amendments to the Information
Certificate as provided on Exhibit D hereto, all of the representations and
warranties set forth in the Loan Agreement and the other Financing Agreements,
each as amended hereby, are true and correct in all material respects on and as
of the date hereof as if made on the date hereof, except to the extent any such
representation or warranty is made as of a specified date, in which case such
representation or warranty shall have been true and correct as of such date; and

                                     - 28 -
<PAGE>

            (f) no Event of Default or act, condition or event which with notice
or passage or time or both would constitute an Event of Default, exists or has
occurred and is continuing.

      4. Conditions Precedent. The amendments set forth herein shall be
effective upon the satisfaction of each of the following conditions precedent in
a manner satisfactory to Lender:

            (a) Lender shall have received an original of this Amendment, duly
authorized, executed and delivered by Borrowers and Guarantors;

            (b) all requisite corporate action and proceedings in connection
with this Amendment and the other Amendment Documents shall be in form and
substance satisfactory to Lender, and Lender shall have received all information
and copies of all documents, including records of requisite corporate action and
proceedings which Lender may have requested in connection therewith, such
documents where requested by Lender or its counsel to be certified by
appropriate corporate officers or governmental authorities;

            (c) no Event of Default or act, condition or event which with notice
or passage of time or both would constitute an Event of Default shall exist or
have occurred and be continuing;

            (d) Lender shall have received, in form and substance satisfactory
to Lender, (i) the Restated German Borrower Term Note, duly authorized, executed
and delivered by German Borrower, (ii) the Restated SCFT Term Note, duly
authorized, executed and delivered by SCFT, (iii) the Restated UK Borrower Term
Note, duly authorized, executed and delivered by UK Borrower and (iv) the New
Term Loan B Promissory Note, duly authorized, executed and delivered by US
Borrowers;

            (e) Lender shall have received an amended and restated fee letter,
in form and substance satisfactory to Lender (the "Amended Fee Letter"), duly
authorized, executed and delivered by Borrowers;

            (f) Lender shall have received, in form and substance satisfactory
to Lender, from each Borrower and Guarantor that are US Entities, a Secretary's
Certificate with respect to the resolutions of the Managing Members or Board of
Directors (as applicable) evidencing the adoption and subsistence of resolutions
approving the execution, delivery and performance by such Borrower or Guarantor
of this Amendment and the other Amendment Documents;

            (g) Lender shall have received a true and correct copy of any
consent, waiver or approval to or of this Amendment, which any Borrower or
Guarantor is required to obtain from any other Person, and such consent,
approval or waiver shall be in form and substance satisfactory to Lender;

            (h) Lender shall have received, in form and substance satisfactory
to Lender, such opinions of counsel to Borrowers and Guarantors that are US
Entities with respect to the matters contemplated by this Amendment and the
other Amendment Documents, addressed to Lender, as Lender shall require;

                                     - 29 -
<PAGE>

            (i) the aggregate Excess Availability of Borrowers as determined by
Lender, as of the effective date of this Amendment, shall be not less than US
Dollar Equivalent of US$10,000,000 after giving effect to the transactions
contemplated hereunder;

            (j) Lender shall have received, in form and substance satisfactory
to Lender, Modification No. 1 to Open-End Mortgage and Security Agreement, duly
authorized, executed and delivered by SCFT;

            (k) Lender shall have received, in form and substance satisfactory
to Lender, updated endorsements to the existing title insurance policy or new
title insurance policy issued by Chicago Title Insurance Corporation acceptable
to Lender (i) insuring the priority and amount of the Mortgage made by SCFT, as
amended, and (ii) containing any legally available endorsements, assurance or
affirmative coverage requested by Lender for protection of its interests;

            (1) Lender shall have received a termination agreement, in form and
substance satisfactory to Lender, duly authorized, executed and delivered by
Existing Agent, Existing Lenders and the other parties to the Existing Credit
Agreement;

            (m) Lender shall have received the fees due and payable on the
effective date of this Amendment as provided in the Amended Fee Letter;

            (n) Lender shall have received a Swap Acknowledgment Agreement, in
form and substance satisfactory to Lender, duly authorized, executed and
delivered by Borrowers, Guarantors and Wachovia Bank, National Association;

            (o) Lender shall have received the Amendment No. 1 to Security
Agreement, in form and substance satisfactory to Lender, duly authorized,
executed and delivered by Safety and KeyCorp Leasing, a Division of Key
Corporate Capital Inc.;

            (p) Lender shall have received, in form and substance satisfactory
to Lender, a director's certificate executed by a director of UK Borrower (i)
certifying that all corporate action has been taken to enable the UK Borrower to
enter into, execute and perform its obligations under this Amendment and the
other Amendment Documents to which it is a party and to authorize the
transactions contemplated herein and therein, (ii) setting out the specimen
signatures of those persons authorized to execute this Amendment and the other
Amendment Documents on behalf of UK Borrower, and (iii) certifying that the
performance by UK Borrower of its rights and obligations under the Loan
Agreement (as amended by this Amendment) would not cause any borrowing limit
binding on it to be exceeded;

            (q) Lender shall have received, in form and substance satisfactory
to Lender, (i) certified copies of the Articles of Association of each of German
Borrower and the general partner of German Borrower, (ii) certified excerpts
from the Commercial Register of each of German Borrower and the general partner
of German Borrower, (iii) a power of attorney executed by a person who is
registered as an authorized representative of German Borrower in the Commercial
Register of German Borrower, (iv) an amendment and restatement to the Pledge

                                     - 30 -
<PAGE>

of Bank Account, dated October 11, 2000, between German Borrower and Lender and
(v) a confirmation letter with respect to the Payment Guaranty, dated October
11, 2000, by German Borrower in favor of Lender; and

            (r) Lender shall have received a letter agreement instructing Lender
to make certain payments directly to Existing Agent, in form and substance
satisfactory to Lender, duly authorized, executed and delivered by Borrowers.

      5. Acknowledgment.

            (a) Each of the US Entities hereby acknowledges, confirms and agrees
that each of the US Entities is jointly and severally indebted to Lender, as of
the opening of business on October 2, 2003, for Loans to Borrowers under the
Loan Agreement in the aggregate principal amount of the US Dollar Equivalent of
US$10,635,002.74, together with all interest accrued and accruing thereon, and
for Letter of Credit Accommodations under the Loan Agreement in the aggregate
amount of the US Dollar Equivalent of US$496,552.00, and all costs, expenses and
other charges now or hereafter owed by Borrowers to Lender in accordance with
the Loan Agreement, in each case without offset, defense or counterclaim of any
kind, nature or description whatsoever and all of which are, subject to the
terms of the Loan Agreement and the other Financing Agreements, unconditionally
owing by the US Entities to Lender.

            (b) Each of the Foreign Entities hereby acknowledges, confirms and
agrees that each of the Foreign Entities is severally (and not jointly) indebted
to Lender, as of the opening of business on October 2, 2003, for Loans to UK
Borrower and German Borrower under the Loan Agreement in the aggregate principal
amount of the US Dollar Equivalent of US$3,099,995.93, together with all
interest accrued and accruing thereon, and for Letter of Credit Accommodations
under the Loan Agreement in the aggregate amount of the US Dollar equivalent of
US$496,552.00, and all costs, expenses and other charges now or hereafter owed
by UK Borrower and German Borrower to Lender in accordance with the Loan
Agreement, in each case without offset, defense or counterclaim of any kind,
nature or description whatsoever and all of which are, subject to the terms of
the Loan Agreement and the other Financing Agreements, unconditionally owing by
the Foreign Entities to Lender.

            (c) To the extent set forth in Sections 5(a) and (b) hereof, each
Borrower and Guarantor hereby acknowledges, confirms and agrees that its
liability for the Obligations of the Borrowers and Guarantors to Lender as set
forth in the Loan Agreement and the other Financing Agreements is in full force
and effect as of the date hereof, and its respective obligations thereunder are,
subject to the terms of this Amendment, the Loan Agreement and the Financing
Agreements, unconditionally owing to Lender, without offset, defense or
counterclaim of any kind, nature or description whatsoever.

            (d) Each Borrower and Guarantor hereby acknowledges, confirms and
agrees that:

                  (i) on the date hereof and after the consummation of the
transactions contemplated by this Amendment, the liability of Borrowers and
Guarantors to Lender to the

                                     - 31 -
<PAGE>

extent set forth in Sections 5(a) and (b) hereof shall continue to be and shall
be in full force and effect;

                  (ii) on the date hereof and after the consummation of the
transactions contemplated by this Amendment, the security interests in and liens
upon the assets and properties of each Borrower and Guarantor in favor of Lender
shall continue to be valid and perfected first priority liens and security
interests except as permitted in the Loan Agreement; and

                  (iii) without limiting the generality of the foregoing, the
transactions contemplated by this Amendment shall in no way limit, impair or
adversely affect the Obligations howsoever arising, or any security interest or
liens securing the same.

      6. Additional Items To Be Delivered. Each Borrower and Guarantor hereby
agrees that, in addition to all other terms, conditions and provisions set forth
in the other Financing Agreements, Borrowers and Guarantors shall deliver or
cause to be delivered to Lender, the following, each in form and substance
satisfactory to Lender, as soon as possible, but in any event, by no later than
the dates listed below:

            (a) by October 15, 2003, copies of all of the Material Contracts
listed on Exhibit F hereto; provided, that, it is understood and agreed that in
addition to, and not in limitation of any other rights and remedies Lender has
under the Financing Agreements, Lender may, at its option, establish such
additional criteria for eligibility, advance rates and other terms and
conditions in the Financing Agreement as may be appropriate in the good faith
determination of Lender upon its review of such Material Contracts;

            (b) by October 31, 2003, an amendment to the Patent Collateral
Assignment and Security Agreement, dated October 11, 2000, by and between SCFT
and Lender, in form and substance satisfactory to Lender, and an amendment to
the Trademark Patent Collateral Assignment and Security Agreement, dated October
11, 2000, by and between SCFT and Lender, each as duly authorized, executed and
delivered by SCFT, with respect to patents and trademarks issued or created
after October 11, 2000 and to be identified in an amendment to the Information
Certificate for SCFT delivered herewith, which amendment shall be delivered to
Lender by no later than October 17, 2003;

            (c) by November 30, 2003, evidence that the judgment entered on
October 19, 2000 in favor of J&R Coating Specialists, Inc. in the United States
District Court for the Western District of Texas in connection with Civil Acton
No. W-99-CV-078 in the amount of $233,288.34 has been paid and satisfied in full
or otherwise discharged and such plaintiff has released Safety and its
Subsidiaries, provided, that if Borrowers and Guarantors fail to deliver such
evidence to Lender by such date, such failure shall not constitute an Event of
Default, provided, however, Lender may, at its option, establish a Reserve in
the amount equal to $233,289 in respect of such failure which Reserve shall be
released upon delivery of such evidence to Lender;

            (d) by December 31, 2003, evidence that the attachment registered
by the Low Cost Housing Fund (Instituto del Fondo Nacional de la Vivienda Para
Los Trabajadores -

                                     - 32 -
<PAGE>

INFONAVIT) in the Public Registry of Property and Commerce of Ensenada, Baja
California, Mexico against Automotive Safety Mexico has been released or
otherwise discharged or is no longer effective as to any assets of Safety or any
of its Subsidiaries; and

            (e) by November 30, 2003, evidence that the pledge by Valentec of
certain assets in favor of General Electric Capital Corporation registered in
the Public Registry of Property and Commerce of Ensenada, Baja California,
Mexico has been released or otherwise discharged or is no longer effective as to
any assets of Safety or any of its Subsidiaries; provided, that, if Borrowers
and Guarantors fail to deliver such evidence to Lender by such date, such
failure shall not constitute an Event of Default, provided, however, Lender may,
at its option, establish a Reserve in the amount equal to $100,000 in respect of
such failure which Reserve shall be released upon delivery of such evidence to
Lender.

      7. General.

            (a) Effect of this Amendment. Except as expressly provided herein,
no other changes or modifications to the Financing Agreements are intended or
implied, and in all other respects the Financing Agreements are hereby
specifically ratified, restated and confirmed by all parties hereto as of the
date hereof. To the extent any conflict exists between the terms of this
Amendment and the Financing Agreements, the terms of this Amendment shall
control.

            (b) Additional Events of Default. Except as expressly provided for
in Section 6(c) and Section 6(e) hereof, the parties hereto acknowledge, confirm
and agree that the failure of Borrowers or Guarantors to comply with the
covenants, conditions and agreements contained herein shall constitute an Event
of Default under the Financing Agreements subject to the cure period set forth
in Section l0.1(a)(ii) of the Loan Agreement.

            (c) Further Assurances. The parties hereto shall execute and deliver
such additional documents and take such additional actions as may be necessary
to effectuate the provisions and purposes of this Amendment.

            (d) Governing Law. The rights and obligations hereunder of each of
the parties hereto shall be governed by and interpreted and determined in
accordance with the internal laws of the State of New York (without giving
effect to principles of conflicts of laws or other rules of law that would
result in the application of the law of any jurisdiction other than the State of
New York).

            (e) Binding Effect. This Amendment is binding upon and shall inure
to the benefit of Lender, Borrowers, Guarantors and their respective successors
and assigns. Any amendment or consent contained herein shall not be construed to
constitute an amendment or consent to any other or further action by Borrowers
or Guarantors or to entitle Borrowers or Guarantors to any other amendment or
consent. The Loan Agreement and this Amendment shall be read and construed as
one agreement.

                                     - 33 -
<PAGE>

            (f) Counterparts, etc. This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original
but all of which when taken together shall constitute one and the same
instrument. In making proof of this Amendment, it shall not be necessary to
produce or account for more than one counterpart hereof signed by each of the
parties hereto. This Amendment may be executed and delivered by telecopier with
the same force and effect as if it were a manually executed and delivered
counterpart.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                     - 34 -
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed and delivered by their respective duly authorized officers as of
the date first written above.

                                     SAFETY COMPONENTS FABRIC
                                     TECHNOLOGIES, INC.

                                     By:    /s/ R. Vick Crowley
                                        ----------------------------------------
                                     Title: Treasurer
                                           -------------------------------------

                                     AUTOMOTIVE SAFETY COMPONENTS
                                     INTERNATIONAL, INC.

                                     By:    /s/ R. Vick Crowley
                                        ----------------------------------------
                                     Title: Treasurer
                                           -------------------------------------

                                     AUTOMOTIVE SAFETY COMPONENTS
                                     INTERNATIONAL GmbH & CO. KG

                                     By:    /s/ R. Vick Crowley
                                        ----------------------------------------
                                     Title: Authorized Person
                                           -------------------------------------

                                     AUTOMOTIVE SAFETY COMPONENTS
                                     INTERNATIONAL LIMITED

                                     By:    /s/ R. Vick Crowley
                                        ----------------------------------------
                                     Title: Authorized Person
                                           -------------------------------------

                                     VALENTEC WELLS, LLC (formerly known
                                     as Valentic International Corporation, LLC)

                                     By:    /s/ R. Vick Crowley
                                        ----------------------------------------
                                     Title: Treasurer
                                           -------------------------------------

<PAGE>

                   [SIGNATURES CONTINUED FROM PREVIOUS PAGE]

                                     SAFETY COMPONENTS INTERNATIONAL, INC.

                                     By:    /s/ R. Vick Crowley
                                        ----------------------------------------
                                     Title: Treasurer
                                           -------------------------------------

                                     ASCI HOLDINGS GERMANY (DE), INC.

                                     By:    /s/ R. Vick Crowley
                                        ----------------------------------------
                                     Title: Treasurer
                                           -------------------------------------

                                     ASCI HOLDINGS U.K. (DE), INC.

                                     By:    /s/ R. Vick Crowley
                                        ----------------------------------------
                                     Title: Treasurer
                                           -------------------------------------

                                     ASCI HOLDINGS MEXICO (DE), INC.

                                     By:    /s/ R. Vick Crowley
                                        ----------------------------------------
                                     Title: Treasurer
                                           -------------------------------------

                                     ASCI HOLDINGS CZECH (DE), INC.

                                     By:    /s/ R. Vick Crowley
                                        ----------------------------------------
                                     Title: Treasurer
                                           -------------------------------------

                       [SIGNATURES CONTINUED ON NEXT PAGE]

<PAGE>

                   [SIGNATURES CONTINUED FROM PREVIOUS PAGE]

                                     AUTOMOTIVE SAFETY COMPONENTS
                                     INTERNATIONAL, S.A. de C.V.

                                     By:    /s/ R. Vick Crowley
                                        ----------------------------------------
                                     Title: Treasurer

                                     AUTOMOTIVE SAFETY COMPONENTS
                                     INTERNATIONAL S.R.O.

                                     By:   /s/ R. Vick Crowley
                                        ----------------------------------------
                                     Title: Authorized Person

                       [SIGNATURES CONTINUED ON NEXT PAGE]

<PAGE>

                   [SIGNATURES CONTINUED FROM PREVIOUS PAGE]

AGREED:
CONGRESS FINANCIAL CORPORATION
(SOUTHERN)

By: Virginia L. Kiseljack
   -------------------------------
Title: First Vice President
      ----------------------------Exhibit 10.30

                            INDEMNIFICATION AGREEMENT

      This Indemnification Agreement is made as of the 25th day of August, 2003,
by and between Safety Components International, Inc., Automotive Safety
Components International, Inc., and Safety Components Fabric Technologies, Inc.,
each a Delaware corporation (individually and collectively referred to herein as
the "Corporation"), and _________________ (the "Indemnitee"), a director and/or
officer of the Corporation.

                                    Recitals:

      A. It is essential that each Corporation be able to retain and attract as
directors and officers the most capable persons available.

      B. The substantial increase in corporate litigation and other
investigative, regulatory and enforcement actions subjects directors and
officers to expensive risks at the same time that the availability of directors'
and officers' liability insurance has been severely limited.

      C. It is now and has always been the express policy of each Corporation to
indemnify its directors and officers.

      D. The Indemnitee does not regard the protection available under the
respective certificates of incorporation and insurance of each Corporation as
adequate in the present circumstances, and may not be willing to serve or
continue to serve as a director and/or officer without adequate protection.

      E. Each Corporation desires the Indemnitee to serve, or continue to serve,
as a director and/or officer of the Corporation.

      NOW, THEREFORE, each Corporation, jointly and severally with each other
Corporation, and the Indemnitee do hereby agree as follows:

      1. Agreement to Serve. The Indemnitee agrees to serve or continue to serve
as a director and/or officer of the Corporation for so long as the Indemnitee is
duly elected or appointed or until such time as the Indemnitee tenders a
resignation in writing.

      2. Definitions. As used in this Agreement:

            (a) The term "Proceeding" shall include any threatened, pending or
completed action, suit, audit, arbitration, alternative dispute resolution
proceeding, administrative hearing or other proceeding, whether brought by or in
the right of the Corporation or otherwise and whether of a civil, criminal,
administrative, investigative,

<PAGE>

regulatory or enforcement nature, including without limitation actions involving
the U.S. Securities and Exchange Commission, state securities commissions, the
U.S. Department of Justice, the Federal Transportation Safety Board, the
Internal Revenue Service and state and local taxing authorities, and any appeal
therefrom.

            (b) The term "Corporate Status" shall mean the status of a person
who is or was a director, officer, partner, employee, agent or trustee of, or in
a similar capacity with, the Corporation, or is or was serving, or has agreed to
serve, at the request of the Corporation, as a director, officer, partner,
employee, agent or trustee of, or in a similar capacity with, another
corporation, partnership, joint venture, trust, limited liability company or
other enterprise.

            (c) The term "Expenses" shall include, without limitation,
attorneys' fees, retainers, court costs, transcript costs, fees and expenses of
experts, travel expenses, duplicating costs, printing and binding costs,
telephone charges, postage, delivery service fees and other disbursements and
expenses reasonably incurred by or on behalf of the Indemnitee, but shall not
include the amount of judgments, fines or penalties against Indemnitee or
amounts paid in settlement in connection with such matters.

            (d) References to "other enterprise" shall include employee benefit
plans; references to "fines" shall include any excise tax assessed with respect
to any employee benefit plan; references to "serving at the request of the
Corporation" shall include any service as a director, officer, partner,
employee, agent or trustee of, or in a similar capacity with, the Corporation
which imposes duties on, or involves services by, such director, officer,
partner, employee, agent or trustee with respect to an employee benefit plan or
its participants or beneficiaries; and a person who acted in good faith and in a
manner such person reasonably believed to be in the interests of the
participants and beneficiaries of an employee benefit plan shall be deemed to
have acted in a manner "not opposed to the best interests of the Corporation" as
referred to in this Agreement.

      3. Indemnification in Third-Party Proceedings. The Corporation shall
indemnify the Indemnitee in accordance with the provisions of this Section 3 if
the Indemnitee was or is a party to or is threatened to be made a party to or
otherwise involved in any Proceeding (other than a Proceeding by or in the right
of the Corporation to procure a judgment in its favor) by reason of the
Indemnitee's Corporate Status or by reason of any action alleged to have been
taken or omitted in connection therewith, against all Expenses, judgments,
fines, penalties and amounts paid in settlement actually and reasonably incurred
by or on behalf of the Indemnitee in connection with such Proceeding, if the
Indemnitee acted in good faith and in a manner which the Indemnitee reasonably
believed to be in, or not opposed to, the best interests of the Corporation and,
with respect to any criminal Proceeding, had no reasonable cause to believe that
his or her conduct was unlawful. The termination of any Proceeding by judgment,
order, settlement, conviction or upon a plea of nolo contendere or its
equivalent, shall not, of itself, create a presumption that the Indemnitee did
not act in good faith and in a manner which the Indemnitee reasonably believed
to be in, or not opposed to, the best interests of

                                       2
<PAGE>

the Corporation, and, with respect to any criminal Proceeding, had reasonable
cause to believe that his or her conduct was unlawful.

      4. Indemnification in Proceedings by or in the Right of the Corporation.
The Corporation shall indemnify the Indemnitee in accordance with the provisions
of this Section 4 if the Indemnitee was or is a party to or is threatened to be
made a party to or otherwise involved in any Proceeding by or in the right of
the Corporation to procure a judgment in its favor by reason of the Indemnitee's
Corporate Status or by reason of any action alleged to have been taken or
omitted in connection therewith, against all Expenses and, to the extent
permitted by law, amounts paid in settlement actually and reasonably incurred by
or on behalf of the Indemnitee in connection with such Proceeding, if the
Indemnitee acted in good faith and in a manner which the Indemnitee reasonably
believed to be in, or not opposed to, the best interests of the Corporation,
except that no indemnification shall be made under this Section 4 in respect of
any claim, issue, or matter as to which the Indemnitee shall have been adjudged
to be liable to the Corporation, unless, and only to the extent, that the Court
of Chancery of Delaware or the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of such
liability but in view of all the circumstances of the case, the Indemnitee is
fairly and reasonably entitled to indemnity for such Expenses as the Court of
Chancery or such other court shall deem proper.

      5. Exceptions to Right of Indemnification. Notwithstanding anything to the
contrary in this Agreement: (a) except as set forth in Section 10, the
Corporation shall not indemnify the Indemnitee in connection with a Proceeding
(or part thereof) initiated by the Indemnitee unless the initiation thereof was
approved by the Board of Directors of the Corporation; (b) the Corporation shall
not indemnify the Indemnitee to the extent the Indemnitee is reimbursed from the
proceeds of insurance, and in the event the Corporation makes any
indemnification payments to the Indemnitee and the Indemnitee is subsequently
reimbursed for such indemnification payments from the proceeds of insurance, the
Indemnitee shall promptly refund such indemnification payments to the
Corporation to the extent of such insurance reimbursement; and (c) the
Corporation shall not indemnify the Indemnitee hereunder to the extent that such
indemnification is prohibited in the Corporation's certificate of incorporation.

      6. Indemnification of Expenses of Successful Party. Notwithstanding any
other provision of this Agreement, to the extent that the Indemnitee has been
successful, on the merits or otherwise, in defense of any Proceeding or in
defense of any claim, issue or matter therein, the Indemnitee shall be
indemnified against all Expenses incurred by or on behalf of the Indemnitee in
connection therewith. Without limiting the foregoing, if any Proceeding or any
claim, issue or matter therein is disposed of, on the merits or otherwise
(including a disposition without prejudice), without (i) an adjudication that
the Indemnitee was liable to the Corporation, (ii) a plea of guilty or nolo
contendere by the Indemnitee, (iii) an adjudication that the Indemnitee did not
act in good faith and in a manner the Indemnitee reasonably believed to be in or
not opposed to the best interests of the Corporation and (iv) with respect to
any criminal proceeding, an adjudication that the Indemnitee had reasonable
cause to believe his or her conduct was unlawful, the

                                       3
<PAGE>

Indemnitee shall be considered for the purposes hereof to have been wholly
successful with respect thereto.

      7. Notification and Defense of Claim. As a condition precedent to the
Indemnitee's right to be indemnified, the Indemnitee must notify the Corporation
in writing as soon as practicable of any Proceeding for which indemnity will or
could be sought; provided, however, that the failure to provide such notice to
the Corporation shall not relieve the Corporation of any liability which it may
have to the Indemnitee except to the extent the Corporation is actually
prejudiced by such failure. With respect to any Proceeding of which the
Corporation is so notified, the Corporation will be entitled to participate
therein at its own expense and/or to assume the defense thereof at its own
expense, with legal counsel reasonably acceptable to the Indemnitee. After
notice from the Corporation to the Indemnitee of its election so to assume such
defense, the Corporation shall not be liable to the Indemnitee for any legal or
other expenses subsequently incurred by the Indemnitee in connection with such
Proceeding, other than as provided below in this Section 7. The Indemnitee shall
have the right to employ his or her own counsel in connection with such
Proceeding, but the fees and expenses of such counsel incurred after notice from
the Corporation of its assumption of the defense thereof shall be at the expense
of the Indemnitee unless (i) the employment of counsel by the Indemnitee has
been authorized by the Corporation, (ii) counsel to the Indemnitee shall have
reasonably concluded that there may be a conflict of interest or position on any
significant issue between the Corporation and the Indemnitee in the conduct of
the defense of such Proceeding or (iii) the Corporation shall not in fact have
employed counsel to assume the defense of such Proceeding, in each of which
cases the fees and expenses of counsel for the Indemnitee shall be at the
expense of the Corporation, except as otherwise expressly provided by this
Agreement. The Corporation shall not be entitled, without the consent of the
Indemnitee, to assume the defense of any claim brought by or in the right of the
Corporation or as to which counsel for the Indemnitee shall have reasonably made
the conclusion provided for in clause (ii) above. The Corporation shall not be
required to indemnify the Indemnitee under this Agreement for any amounts paid
in settlement of any Proceeding effected without its written consent. The
Corporation shall not settle any Proceeding in any manner which would impose any
penalty or limitation on the Indemnitee without the Indemnitee's written
consent. Neither the Corporation nor the Indemnitee will unreasonably withhold
or delay their consent to any proposed settlement.

      8. Advancement of Expenses. Subject to the provisions of Section 9 of this
Agreement, to the extent that the Corporation does not assume the defense
pursuant to Section 7 of this Agreement of any Proceeding of which the
Corporation receives notice under this Agreement or to the extent that the
Corporation is required to pay the expenses of the Indemnitee's own counsel
pursuant to Section 7, any Expenses incurred by or on behalf of the Indemnitee
in defending such Proceeding shall be paid by the Corporation in advance of the
final disposition of such Proceeding; provided, however, that the payment of
such Expenses incurred by or on behalf of the Indemnitee in advance of the final
disposition of such Proceeding shall be made only upon receipt of an undertaking
by or on behalf of the Indemnitee to repay all amounts so advanced in the event
that it shall

                                       4
<PAGE>

ultimately be determined that the Indemnitee is not entitled to be indemnified
by the Corporation as authorized in this Agreement. Such undertaking shall be
accepted without reference to the financial ability of the Indemnitee to make
repayment.

      9. Procedure for Indemnification and Advancement of Expenses.

            (a) In order to obtain indemnification or advancement of Expenses
pursuant to Sections 3, 4, 6 or 8 of this Agreement, the Indemnitee shall submit
to the Corporation a written request, including in such request such
documentation and information as is reasonably available to the Indemnitee and
is reasonably necessary to determine whether and to what extent the Indemnitee
is entitled to indemnification or advancement of expenses.

            (b) Any such indemnification shall be made promptly, and in any
event within 30 days after receipt by the Corporation of the written request of
the Indemnitee, unless with respect to requests for indemnification under
Section 3 or 4 the Corporation determines within such 30-day period that the
Indemnitee did not meet the applicable standard of conduct set forth in Section
3 or 4, as the case may be. Such determination, and any determination that
advanced Expenses must be repaid to the Corporation, shall be made in each
instance (i) by a majority vote of the directors of the Corporation consisting
of persons who are not at that time parties to the Proceeding ("disinterested
directors"), whether or not a quorum, (ii) by a majority vote of a committee of
disinterested directors designated by a majority vote of disinterested
directors, whether or not a quorum, (iii) if there are no disinterested
directors, or if the disinterested directors so direct, by independent legal
counsel (who may, to the extent permitted by applicable law, be regular legal
counsel to the Corporation) in a written opinion or (iv) by the stockholders of
the Corporation; provided, however, that following any Change in Control (as
defined below) the Indemnitee shall have the right, by notice to the
Corporation, to require that any such determination, and any determination that
advanced Expenses must be repaid to the Corporation, shall be made only by
independent legal counsel selected by the Indemnitee and approved by the
Corporation (which approval shall not be unreasonably withheld). Such counsel
shall render its written opinion to the Corporation and the Indemnitee as to
whether and to what extent the Indemnitee is permitted to be indemnified or have
expenses advanced hereunder and/or under applicable law and the Corporation
agrees to abide by such opinion. The Corporation agrees to pay the reasonable
fees of the independent legal counsel and to indemnify such counsel against any
and all expenses (including reasonable attorneys fees), claims, liabilities and
damages arising out of or relating to its engagement pursuant hereto.

      For purposes of this Agreement, a "Change in Control" shall mean:

            (w) the acquisition by an individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act")) (a "Person"), of beneficial ownership of any
capital stock of the Corporation if, after such acquisition, such Person
beneficially owns (within

                                       5
<PAGE>

the meaning of Rule 13d-3 promulgated under the Exchange Act) 50% or more of
either (i) the then-outstanding shares of common stock of the Corporation (the
"Common Stock") or (ii) the combined voting power of the then-outstanding
securities of the Corporation entitled to vote generally in the election of
directors (the "Voting Securities"); provided, however, that the following
acquisitions shall not constitute a Change in Control: (i) any acquisition of
Common Stock or Voting Securities directly from the Corporation (excluding an
acquisition pursuant to the exercise, conversion or exchange of any security
exercisable for, convertible into or exchangeable for common stock or voting
securities of the Corporation, unless the Person exercising, converting or
exchanging such security acquired such security directly from the Corporation or
an underwriter or agent of the Corporation), (ii) any acquisition by the
Corporation or any employee benefit plan (or related trust) sponsored or
maintained by the Corporation or any corporation controlled by the Corporation
or (iii) any acquisition by any corporation pursuant to a Merger Combination (as
defined below) that meets the Ownership Requirement (as defined below); or

                  (x) individuals who, as of the date hereof, constitute the
members of the Corporation's Board of Directors (the "Incumbent Directors")
cease for any reason to constitute at least a majority of the Corporation's
Board of Directors (or, if applicable, the Board of Directors of a successor
corporation to the Corporation); provided, however, that any individual becoming
a director of the Corporation subsequent to the date hereof who was nominated or
elected by at least a majority of the Incumbent Directors at the time of such
nomination or election or whose election to the Corporation's Board of Directors
was recommended or endorsed by at least a majority of the directors who were the
Incumbent Directors at the time of such nomination or election shall be deemed
to be the Incumbent Directors (except that this proviso shall not apply to any
individual whose initial assumption of office occurs as a result of an actual or
threatened election contest with respect to the election or removal of directors
or other actual or threatened solicitation of proxies or consents by or on
behalf of a Person other than the Corporation's Board of Directors); or

                  (y) the consummation of a merger, consolidation,
reorganization, recapitalization or share exchange involving the Corporation or
a sale or other disposition of all or substantially all of the assets of the
Corporation (a "Merger Combination"), unless immediately following such Merger
Combination, all or substantially all of the individuals and entities who were
the beneficial owners of Common Stock and Voting Securities immediately prior to
such Merger Combination beneficially own, directly or indirectly, more than 50%
of the shares of common stock and the combined voting power of the securities
entitled to vote generally in the election of directors, respectively, of the
resulting or acquiring corporation in such Merger Combination (which shall
include, without limitation, a corporation which as a result of such transaction
owns the Corporation or substantially all of the Corporation's assets either
directly or through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Merger Combination
(the "Ownership Requirement"); or

                                       6
<PAGE>

                  (z) approval by the stockholders of the Corporation of a
complete liquidation or dissolution of the Corporation.

            (c) Any such advancement of Expenses shall be made promptly, and in
any event within 30 days after receipt by the Corporation of the written request
of the Indemnitee, unless within such 30-day period (i) the Corporation
determines that the Indemnitee did not meet the applicable standard of conduct
set forth in Section 3 or 4, as the case may be, or (ii) independent legal
counsel (who may, to the extent permitted by applicable law, be regular legal
counsel to the Corporation) determines that the advancement of Expenses would
violate applicable law.

      10. Remedies. The right to indemnification or advancement of Expenses as
provided by this Agreement shall be enforceable by the Indemnitee in any court
of competent jurisdiction. Unless otherwise required by law, the burden of
proving that indemnification or advancement of Expenses is not appropriate shall
be on the Corporation. Neither the failure of the Corporation to have made a
determination prior to the commencement of such action that indemnification is
proper in the circumstances because the Indemnitee has met the applicable
standard of conduct, nor an actual determination pursuant to Section 9 that the
Indemnitee has not met such applicable standard of conduct, shall be a defense
to the action or create a presumption that the Indemnitee has not met the
applicable standard of conduct. The Indemnitee's expenses (of the type described
in the definition of "Expenses" in Section 2(c)) reasonably incurred in
connection with successfully establishing the Indemnitee's right to
indemnification, in whole or in part, in any such Proceeding shall also be
indemnified by the Corporation.

      11. Partial Indemnification. If the Indemnitee is entitled under any
provision of this Agreement to indemnification by the Corporation for some or a
portion of the Expenses, judgments, fines, penalties or amounts paid in
settlement actually and reasonably incurred by or on behalf of the Indemnitee in
connection with any Proceeding but not, however, for the total amount thereof,
the Corporation shall nevertheless indemnify the Indemnitee for the portion of
such Expenses, judgments, fines, penalties or amounts paid in settlement to
which the Indemnitee is entitled.

      12. Subrogation. In the event of any payment under this Agreement, the
Corporation shall be subrogated to the extent of such payment to all of the
rights of recovery of the Indemnitee, who shall execute all papers required and
take all action necessary to secure such rights, including execution of such
documents as are necessary to enable the Corporation to bring suit to enforce
such rights.

      13. Term of Agreement. This Agreement shall continue in effect
indefinitely regardless of when or if the Indemnitee shall cease to serve as a
director or officer of the Corporation or, at the request of a Corporation, as a
director, officer, partner, employee, agent or trustee of, or in a similar
capacity with, another corporation, partnership, joint venture, trust, limited
liability company or other enterprise.

                                       7
<PAGE>

      14. Indemnification Hereunder Not Exclusive. The indemnification and
advancement of Expenses provided by this Agreement shall not be deemed exclusive
of any other rights to which the Indemnitee may be entitled under the
Certificate of Incorporation or By-Laws of any Corporation, any other agreement,
any vote of stockholders or disinterested directors, the General Corporation Law
of Delaware, any other law (common or statutory), or otherwise, both as to
action in the Indemnitee's official capacity and as to action in another
capacity while holding office for a Corporation. Nothing contained in this
Agreement shall be deemed to prohibit a Corporation from purchasing and
maintaining insurance, at its expense, to protect itself or the Indemnitee
against any expense, liability or loss incurred by it or the Indemnitee in any
such capacity, or arising out of the Indemnitee's status as such, whether or not
the Indemnitee would be indemnified against such expense, liability or loss
under this Agreement; provided that no Corporation shall be liable under this
Agreement to make any payment of amounts otherwise indemnifiable hereunder if
and to the extent that the Indemnitee has otherwise actually received such
payment under any insurance policy, contract, agreement or otherwise.

      15. No Special Rights. Nothing herein shall confer upon the Indemnitee any
right to continue to serve as an officer or director of a Corporation for any
period of time or at any particular rate of compensation.

      16. Savings Clause. If this Agreement or any portion thereof shall be
invalidated on any ground by any court of competent jurisdiction, then the
Corporation shall nevertheless indemnify the Indemnitee as to Expenses,
judgments, fines, penalties and amounts paid in settlement with respect to any
Proceeding to the full extent permitted by any applicable portion of this
Agreement that shall not have been invalidated and to the fullest extent
permitted by applicable law.

      17. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute the original.

      18. Successors and Assigns, This Agreement shall be binding upon each
Corporation and its successors and assigns and shall inure to the benefit of the
estate, heirs, executors, administrators and personal representatives of the
Indemnitee.

      19. Headings. The headings of the paragraphs or sections of this Agreement
are inserted for convenience only and shall not be deemed to constitute part of
this Agreement or to affect the construction thereof.

      20. Modification and Waiver. This Agreement may be amended from time to
time to reflect changes in Delaware law or for other reasons. No supplement,
modification or amendment of this Agreement shall be binding unless executed in
writing by each of the parties hereto. No waiver of any of the provisions of
this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof nor shall any such waiver constitute a continuing waiver.

                                       8
<PAGE>

      21. Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been given (i) when
delivered by hand or (ii) if mailed by certified or registered mail with postage
prepaid, on the third day after the date on which it is so mailed:

            (a)   if to the Indemnitee, to:

                  _________________________

                  _________________________

                  _________________________

            (b)   if to any Corporation, to:

                  Safety Components International, Inc.
                  41 Stevens Street
                  Greenville, SC   29605

or to such other address as may have been furnished to the Indemnitee by the
Corporation or to the Corporation by the Indemnitee, as the case may be.

      22. Applicable Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of Delaware. The Indemnitee
may elect to have the right to indemnification or reimbursement or advancement
of Expenses interpreted on the basis of the applicable law in effect at the time
of the occurrence of the event or events giving rise to the applicable
Proceeding, to the extent permitted by law, or on the basis of the applicable
law in effect at the time such indemnification or reimbursement or advancement
of Expenses is sought. Such election shall be made, by a notice in writing to
the Corporation, at the time indemnification or reimbursement or advancement of
Expenses is sought; provided, however, that if no such notice is given, and if
the General Corporation Law of Delaware is amended, or other Delaware law is
enacted, to permit further indemnification of the directors and officers, then
the Indemnitee shall be indemnified to the fullest extent permitted under the
General Corporation Law of Delaware, as so amended, or by such other Delaware
law, as so enacted.

      23. Enforcement. Each Corporation expressly confirms and agrees that it
has entered into this Agreement in order to induce the Indemnitee to continue to
serve as an officer or director of the Corporation, acknowledges that the
Indemnitee is relying upon this Agreement in continuing in such capacity and
that its obligations hereunder are joint and several.

      24. Entire Agreement. This Agreement sets forth the entire agreement of
the parties hereto in respect of the subject matter contained herein and
supercedes all prior agreements, whether oral or written, by any officer,
employee or representative of any party hereto in respect of the subject matter
contained herein; and any prior agreement of the parties hereto in respect of
the subject matter contained herein is hereby terminated

                                       9
<PAGE>

and cancelled. For avoidance of doubt, the parties confirm that the foregoing
does not apply to or limit the Indemnitee's rights under Delaware law or the
Certificate of Incorporation or By-Laws of any Corporation.

      25. Consent to Suit. In the case of any dispute under or in connection
with this Agreement, the Indemnitee may only bring suit against a Corporation in
the Court of Chancery of the State of Delaware. The Indemnitee hereby consents
to the exclusive jurisdiction and venue of the courts of the State of Delaware,
and the Indemnitee hereby waives any claim the Indemnitee may have at any time
as to forum non conveniens with respect to such venue. A Corporation shall have
the right to institute any legal action arising out of or relating to this
Agreement in any court of competent jurisdiction. Any judgment entered against
either of the parties in any proceeding hereunder may be entered and enforced by
any court of competent jurisdiction.

                  (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       10
<PAGE>

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

                                           SAFETY COMPONENTS INTERNATIONAL, INC.

                                           By:__________________________________

                                           Title: ______________________________

                                           AUTOMOTIVE SAFETY COMPONENTS
                                             INTERNATIONAL, INC.

                                           By:__________________________________

                                           Title: ______________________________

                                           SAFETY COMPONENTS FABRIC
                                             TECHNOLOGIES, INC.

                                           By:__________________________________

                                           Title: ______________________________

                                           INDEMNITEE:

                                           _____________________________________

                                           ____________________

                                       11

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