Document:

<PAGE>
                                                                    EXHIBIT 4(f)
                               FIFTH AMENDMENT TO
                                CREDIT AGREEMENT
                                ----------------

         This Fifth Amendment to the Credit Agreement (the "Amendment") is
entered as of this 1st day of July, 2002, by and between FIFTH THIRD BANK,
CENTRAL OHIO, an Ohio banking corporation (the "Bank"), BANCINSURANCE
CORPORATION, an Ohio corporation (the "Borrower"), AMERICAN LEGAL PUBLISHING
CORPORATION, an Ohio corporation, and PAUL BOARDWAY & ASSOCIATES, INC., a New
York corporation (collectively the "Guarantors").

         WHEREAS, Bank and Borrower entered into that certain Credit Agreement,
dated as of January 25, 1993, as amended by the First Amendment thereto, dated
November 5, 1993, the Second Amendment thereto, dated October 19, 1994, the
Third Amendment thereto, dated November 24, 1999 and the Fourth Amendment
thereto dated December 11, 2000 (collectively, the "Agreement");

         WHEREAS, Borrower executed and delivered to Bank a Revolving Note,
dated January 25, 1993, in the original principal amount of $6,000,000 (the
"Note");

         WHEREAS, the terms of the Note were amended and restated pursuant to
Amended and Restated Notes, dated November 5, 1993, October 19, 1994, July 19,
1995, June 4, 1996, July 17, 1997, September 1, 1998, November 24, 1999, and
December 11, 2000; as of the last amendment and restatement of the Note, the
principal amount of the same is $ 10,000,000; and

         WHEREAS, Borrower, Bank and Guarantors desire to amend the Agreement
and the Note to extend the term thereof, increase the principal amount of the
Note, add the guarantees of the Guarantors and to change certain financial
covenants contained in the Agreement, subject to the terms and conditions set
forth herein;

         NOW THEREFORE, intending to be legally bound, the parties hereto agree
as follows:

           1.     AMENDMENTS.

         (a) Section 2, Subsections 2. 1 (a) and (b) of the Agreement are hereby
amended and restated in their entirety to read as follows:

             2.1 REVOLVING CREDIT Loans. (a) Subject to the terms and conditions
             hereof, Bank hereby extends to Borrower a line of credit facility
             (the "Facility") under which Bank will make loans (the "Revolving
             Loans") to Borrower in an aggregate amount to not exceed
             $13,000,000. Bank may create and maintain reserves from time to
             time based on such credit considerations as Bank may deem
             appropriate. Borrower may borrow, prepay (without penalty or
             charge) and reborrow under the Facility, provided that the
             principal amount of all Revolving Loans outstanding at any one time
             under the Facility will not exceed $13,000,000. If the amount of
             the Revolving Loans outstanding at any time under the Facility
             exceeds such amount, Borrower shall immediately pay the amount of
             such excess to Bank in cash.

             (b) On the date of execution of the Fifth Amendment to Credit
             Agreement, Borrower shall duly execute and deliver to Bank an
             amended and restated Revolving Note in the form attached as Exhibit
             2.1 to the Amendment, in the principal amount of $13,000,000,
             bearing interest as specified in such Amended and Restated
             Revolving Note (the "Revolving Note") and such Amended and Restated
             Revolving Note will substitute for the Note most recently executed
             by Borrower on December 11, 2000.

         (b) Section 2, Subsection 2. 1 (d)(i), first sentence is hereby amended
and restated in its entirety to read as follows: "The term of the Facility will
expire on June 30, 2006, and the Revolving Note will become payable in full on
that date."

<PAGE>

         (c) Section 2, Subsection 2. 1 (d)(ii), first sentence is hereby
amended by deleting "May 1, 1994" and substituting "June 30, 2003" in lieu
thereof, and by deleting 'May 1" and substituting "June 30" in lieu thereof.

         (d) Section 3.4 of the Agreement is hereby deleted in its entirety.

         (e) Section 5, Subsection 5.2 of the Agreement is hereby amended and
restated in its entirety to read as follows:

             5.2 PLEDGE OR ENCUMBRANCE OF ASSETS. Other than the Permitted
             Liens, neither Borrower nor any Guarantor will create, incur,
             assume or permit to exist any Lien in any present or future asset,
             except for Liens to Bank, Liens existing on the date of this
             Agreement which have been disclosed to and approved by Bank and
             Liens imposed by law which secure amounts not at the time due and
             payable.

         (f) Section 5, Subsection 5.5 of the Agreement is hereby amended and
restated in its entirety to read as follows:

             5.5 MINIMUM SHAREHOLDERS' EQUITY. Borrower will not permit the
             consolidated shareholders' equity of the Borrower and its
             Subsidiaries, as determined in accordance with generally acceptable
             accounting principles ("GAAP"), to be less than $20,000,000, tested
             quarterly throughout the term of this Agreement.

         (g) Section 5, Subsection 5.6 of the Agreement is hereby amended and
restated in its entirety to read as follows:

             5.6 DEBT SERVICE COVERAGE RATIO. Borrower will not permit the
             consolidated Debt Service Coverage Ratio of the Borrower and its
             Subsidiaries to be less than 2.0:1 at the end of any fiscal year.

         (h) Section 5, Subsection 5.7 of the Agreement is hereby amended and
restated in its entirety to read as follows:

             5.7 MAXIMUM NET PREMIUMS RATIO. Borrower shall not cause Ohio
             Indemnity's ratio of net premiums underwritten to "policy holders'
             surplus", measured according to statutory reporting requirements,
             to exceed 3.0: 1, tested quarterly throughout the term of this
             Agreement.

         (i) At Section 5, add the following new Subsection 5.8:

             5.8. Borrower will not permit its current A.M. Best rating "A" to
             be downgraded any lower than "B++."

         2. REPRESENTATIONS. WARRANTIES AND COVENANTS OF BORROWER AND
GUARANTORS. To induce Bank to enter into this Amendment, Borrower and Guarantors
represent and warrant as follows:

         (a)      The representations and warranties of Borrower contained in
                  Section 3 of the Agreement are deemed to have been made again
                  on and as of the date of execution of this Amendment, and are
                  true and correct as of the date of execution hereof.

         (b)      No Event of Default (as such term is defined in Section 6 of
                  the Agreement) or event or condition which, with the lapse of
                  time or giving of notice or both, would constitute an Event of
                  Default exists on the date hereof.

         (c)      The person executing this Amendment, the Amended and Restated
                  Revolving Note and each of the Guaranties, is a duly elected
                  and acting officer of Borrower or a Guarantor, as appropriate,
                  and is duly authorized by the Board of Directors of Borrower,
                  or a Guarantor, as appropriate, to execute and deliver this
                  Amendment, such Note or a Guaranty on behalf of Borrower, or a
                  Guarantor, as appropriate.

<PAGE>

3.       CONDITIONS. Bank's obligations under this Amendment are subject to the
         following conditions:

(a)      Borrower shall have executed and delivered to Bank the Amended and
         Restated Revolving Note in the form attached hereto as Exhibit 2. 1.

(b)      Guarantors shall have executed and delivered to Bank the Guaranties in
         the form attached hereto as Exhibit 5. 1.

(c)      The Bank shall have been furnished copies, certified by the Secretary
         or assistant Secretary of Borrower and Guarantors, of resolutions of
         the Board of Directors of Borrower and Guarantors in a form
         satisfactory to the Bank authorizing the execution of this Amendment,
         the Exhibits hereto and all other documents executed in connection
         herewith, as appropriate.

(d)      The representations and warranties of Borrower and Guarantors in
         Section 2 hereof shall be true and correct on the date of execution of
         this Amendment.

(e)      Borrower shall have delivered a $1,500 closing fee to the Bank.

(f)      On or before August 1, 2002, Borrower shall have delivered Bank a
         resolution of the directors of Borrower in a form acceptable to Bank
         ratifying and approving the appropriate officer's execution of this
         Amendment.

(g)      On or before August 1, 2002, Each Guarantor shall have delivered Bank a
         resolution of the directors of Guarantor in a form acceptable to Bank
         ratifying and approving the appropriate officer's execution of this
         Amendment and the Guaranty.

4.       GENERAL.

(a)      Except as expressly modified hereby, the Agreement remains unaltered
         and in full force and effect. Borrower acknowledges that Bank has made
         no oral representations to Borrower with respect to the Agreement and
         this Amendment thereto and that all prior understandings between the
         parties are merged into the Agreement as amended by this writing. All
         Loans outstanding on the date of execution of this Amendment shall be
         considered for all purposes to be Loans outstanding under the Agreement
         as amended by this Amendment.

(b)      Capitalized terms used and not otherwise defined herein will have the
         meanings set forth in the Agreement.

(c)      Nothing contained herein will be construed as waiving any default or
         Event of Default under the Agreement or will affect or impair any
         right, power or remedy of the Bank under or with respect to the Loans,
         the Agreement, as amended, the Note, as amended and restated, or any
         agreement or instrument guaranteeing, securing or otherwise relating to
         the Loans.

(d)      This Amendment shall be considered an integral part of the Agreement,
         and all references in the, Agreement in the Agreement itself or any
         document referring thereto shall, on and after the date of execution of
         this Amendment, be deemed to be references to the Agreement as amended
         by this Amendment.

(e)      This Amendment will be binding upon and inure to the benefit of
         Borrower and Bank and their respective successors and assigns.

(f)      All representations, warranties and covenants made by Borrower herein
         will survive the execution and delivery of this Amendment.

(g)      This Amendment will, in all respects, be governed and construed in
         accordance with the laws of the State of Ohio.

(h)      This Amendment may be executed in one or more counterparts, each of
         which will be deemed an original and all of which together will
         constitute one and the same instrument.

<PAGE>

(i)      Borrower authorizes any attorney of record to appear for it in any
         court of record in the State of Ohio, after an Obligation becomes due
         and payable whether by its terms or upon default, waives the issuance
         and service of process, releases all errors and rights of appeal, and
         confesses a judgment against it in favor of the holder of such
         Obligation, for the principal amount of such Obligation plus interest
         thereon, together with court costs and attorneys' fees. Stay of
         Execution and all exemptions are hereby waived. Borrower also agrees
         that the attorney acting for Borrower as set forth in this paragraph
         may be compensated by Bank for such services, and Borrower waives any
         conflict of interest caused by such representation and compensation
         arrangement. If an Obligation is referred to an attorney for
         collection, and the payment is obtained without the entry of a
         judgment, the obligors will pay to the holder of such Obligation its
         attorneys' fees.

5.       GUARANTORS. Each of the undersigned acknowledges and agrees to be bound
         by the terms and provisions of only section 5.2 of the Agreement and
         Section 2 of this Amendment and to enter into and execute and
         Unconditional Guaranty of Payment and Performance ("Guaranty") in the
         form attached hereto as Exhibit 5.1. Borrower shall cause any and all
         other subsidiary entities of Borrower which are created or acquired
         after the date hereof to enter into and execute a Guaranty.

AMERICAN LEGAL PUBLISHING
CORPORATION

By:             /s/Si Sokol
     ------------------------------------------------

Its:            Chairman
      -----------------------------------------------

PAUL BOARDWAY & ASSOCIATES, INC.

By:             /s/John S. Sokol
     ------------------------------------------------

Its:            President
      -----------------------------------------------

<PAGE>

IN WITNESS WHEREOF, Borrower and Bank have executed this Agreement by their duly
authorized officers as of the date first above written.

WARNING - BY SIGNING THIS PAPER, YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
TRIAL. IF YOU DO NOT PAY ON TIME, A COURT JUDGMENT MAY BE TAKEN AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT
OR ANY OTHER CAUSE.

                                     BANCINSURANCE CORPORATION

                                     By:               /s/John S. Sokol
                                         --------------------------------------

                                     Its:              President
                                           ------------------------------------

                                     FIFTH THIRD BANK, CENTRAL OHIO

                                     By:               /s/John Beardslee
                                         --------------------------------------

                                     Its:              Vice President
                                          -------------------------------------

<PAGE>

                                   EXHIBIT 2.1
                              AMENDED AND RESTATED
                                 REVOLVING NOTE

  $13,000,000

                                                                  Columbus, Ohio
                                                                January 25, 1993
                                First Amendment and Restatement November 5, 1993
                               Second Amendment and Restatement October 19, 1994
                                   Third Amendment and Restatement July 19, 1995
                                   Fourth Amendment and Restatement June 4, 1996
                                   Fifth Amendment and Restatement July 17, 1997
                               Sixth Amendment and Restatement September 1, 1998
                             Seventh Amendment and Restatement November 24, 1999
                              Eighth Amendment and Restatement December 11, 2000
                                    Ninth Amendment and Restatement July 1, 2002

         On June 30, 2006 BANCINSURANCE CORPORATION, an Ohio corporation
("Borrower"), for value received, hereby promises to pay to the order of FIFTH
THIRD BANK, CENTRAL OHIO, an Ohio banking corporation (the "Bank"), at its
offices, located at 21 East State Street, Columbus, Ohio 43215, in lawful money
of the United States of America and in immediately available funds, the
principal sum of Thirteen Million and 00/100 Dollars ($13,000,000), or such
lesser unpaid principal amount as may be advanced by Bank pursuant to the terms
of the Credit Agreement, dated January 25, 1993, by and between Borrower and
Bank, as amended by the First Amendment thereto, dated November 5, 1993, the
Second Amendment thereto dated October 19, 1994, the Third Amendment thereto
dated November 24, 1999, the Fourth Amendment thereto dated December 11, 2000
and the Fifth Amendment thereto dated of even date herewith, as the same may be
further amended from time to time (the "Agreement") together with interest on
the unrepaid advances of said principal sum from date of disbursement by Bank
and with all other charges herein provided, payable in cash, at the rates and in
the manner hereinafter set forth.

         1.       INTEREST RATE.

                  1.1 The principal balance outstanding hereunder, will bear
interest from the date of the first advance until paid at an annual floating
rate of interest equal to 0.75% less than the Prime Rate (as defined below) of
Bank in effect from time to time.

                  1.2 The interest rate charged hereunder will change
automatically upon each change in the Prime Rate. Accrued and unpaid interest
will be due and payable quarterly commencing on the first day of October, 2002
and continuing on the first (I") day of each January, April, July and October
thereafter during the term hereof. On June 30, 2006, all outstanding principal
and all accrued and unpaid interest will be due and payable. Interest will be
calculated based on a 360 day year and charged for the actual number of days
elapsed, and will be payable on the first day of each calendar quarter. After
maturity, whether by acceleration or otherwise, this Note will bear interest
(computed and adjusted in the same manner, and with the same effect, as interest
hereon prior to maturity) payable on demand, at a rate per annum equal to the
Default Rate, until paid, and whether before or after the entry of judgment
hereon.

                  1.3 The Prime Rate means the rate of interest per annum
announced to be its Prime Rate from time to time by Bank at its principal office
Columbus, Ohio whether or not Bank will at times lend to borrowers at lower
rates of interest, or if there is no such Prime Rate, then its base rate or such
other rate as may be substituted by Bank for the Prime Rate.

<PAGE>

2.       GENERAL TERMS.

         2.1 The principal amount of each loan made by Bank under this Note and
the amount of each prepayment made by Borrower under this Note will be recorded
by Bank in the regularly maintained data processing records of Bank. The
aggregate unpaid principal amount of all loans set forth in such records will be
presumptive evidence of the principal amount owing and unpaid on this Note.
However, failure by Bank to make any such entry will not limit or otherwise
affect Borrower's obligations under this Note or the Agreement

         2.2 All payments received by Bank under this Note will be applied first
to payment of amounts advanced by Bank on behalf of Borrower or which may be due
for insurance, taxes and attorney's fees or other charges to be paid by Borrower
pursuant to the Agreement and the Loan Documents (as defined in the Agreement),
then to accrued interest on this Note, then to principal which will be repaid in
the inverse order of maturity.

         2.3 This Note is the Revolving Note referred to in the Agreement, and
is entitled to the benefits, and is subject to the terms of the Agreement.
Capitalized terms used, but not otherwise defined herein will have the meanings
attributed thereto in the Agreement. The principal of this Note is prepayable in
the amounts and under the circumstances, and its maturity is subject to
acceleration upon the terms, set forth in the Agreement. Except as otherwise
expressly provided in the Agreement, if any payment on this Note becomes due and
payable on a day other than one on which Bank is open for business (a "Business
Day"), the maturity thereof will be extended to the next Business Day, and
interest will be payable at the rate specified herein during such extension
period.

         2.4 After the occurrence of an Event of Default, all amounts of
principal outstanding as of the date of the occurrence of such Event of Default
will bear interest at the Default Rate, in Bank's sole discretion, without
notice to Borrower. This provision does not constitute a waiver of any Events of
Default or an agreement by Bank to permit any late payments whatsoever.

         2.5 In no event will the interest rate on this Note exceed the highest
rate permissible under any law which a court of competent jurisdiction will, in
a final determination, deem applicable hereto. In the event that a court
determines that Bank has received interest and other charges under this Note in
excess of the highest permissible rate applicable hereto, such excess will be
deemed received on account of, and will automatically be applied to reduce the
amounts due to Bank from Borrower under this Note, other than interest, and the
provisions hereof will be deemed amended to provide for the highest permissible
rate. If there are no such amounts outstanding, Bank will refund to Borrower
such excess.

         2.6 Borrower and all endorsers, sureties, guarantors and other persons
liable on this Note hereby waive presentment for payment, demand, notice of
dishonor, protest, notice of protest and all other demands and notices in
connection with the delivery, performance and enforcement of this Note, and
consent to one or more renewals or extensions of this Note.

         2.7 This Note is being executed and delivered in substitution for the
Amended and Restated Revolving Note, most recently dated December 11, 2000, in
the principal amount of $ 10,000,000 and is not delivered in repayment hereof.

         2.8 This Note may not be changed orally, but only by an instrument in
writing.

         2.9 This Note is being delivered in, is intended to be performed in,
will be construed and enforceable in accordance with, and be governed by the
internal laws of, the State of Ohio without regards to principles of conflict of
laws. Borrower agrees that The State and Federal courts in Franklin County, Ohio
or any other court in which Bank initiates proceedings will have exclusive
jurisdiction over all matters arising out of this Note, and that service of
process in any such proceeding will be effective if mailed to Borrower at its
address described in the Notices section of the Agreement. BORROWER HEREBY
WAIVES THE RIGHT TO TRIAL BY JURY OF ANY MATTERS ARISING OUT OF THIS NOTE.

         2.10 Borrower authorizes any attorney of record to appear for it in any
court of record in the State of Ohio, after an Obligation becomes due and
payable whether by its terms or upon default, waives the issuance and service of
process, releases all errors and rights of appeal, and confesses a judgment
against it in favor of the holder of such Obligation, for the principal amount
of such Obligation plus interest thereon, together with court costs and
attorneys' fees.

<PAGE>

Stay of Execution and all exemptions are hereby waived. Borrower also agrees
that the attorney acting for Borrower as set forth in this paragraph may be
compensated by Bank for such services, and Borrower waives any conflict of
interest caused by such representation and compensation arrangement. If an
Obligation is referred to an attorney for collection, and the payment is
obtained without the entry of a judgment, the obligors will pay to the holder of
such Obligation its attorneys' fees.

WARNING - BY SIGNING THIS PAPER, YOU GIVE IT UP YOUR RIGHT TO NOTICE AND COURT
TRIAL, IF YOU DO NOT PAY ON TIME, A COURT JUDGMENT MAY BE TAKEN AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMB YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT
OR ANY OTHER CAUSE.

                                      BANCINSURANCE CORPORATION

                                      By:               /s/John S. Sokol
                                          -------------------------------------

                                      Its:              President
                                           ------------------------------------

<PAGE>

                                   EXHIBIT 5.1

                UNCONDITIONAL GUARANTY OF PAYMENT AND PERFORMANCE

         FOR VALUE RECEIVED and for the purpose of inducing FIFTH THIRD BANK,
CENTRAL OHIO, an Ohio banking corporation, having an office at 21 East State
Street, Columbus, Ohio 43215 ("Lender"), to make a loan in the amount of
THIRTEEN MILLION AND 00/DOLLARS ($13,000,000.00) to BANCINSURANCE CORPORATION,
an Ohio corporation, having an office at 250 East Broad Street, Columbus, Ohio
43215 ("Borrower"), from which the undersigned expects to derive direct monetary
benefit, the undersigned AMERICAN LEGAL PUBLISHING CORPORATION, an Ohio
corporation ("Guarantor"), whose tax identification number is 31-1227610, agrees
for the benefit of Lender as follows:

1. Guarantor unconditionally and absolutely guarantees to Lender the full. and
prompt payment, whether at stated or accelerated maturity or otherwise, of any
and all principal, interest, damages, losses, costs, charges, expenses and
liabilities, whether fixed or contingent (collectively the "Indebtedness") and
the complete, faithful and punctual performance of any and all other obligations
(collectively the "Obligations") of Borrower to Lender under the terms and
conditions of (a) the Credit Agreement, dated January 25,1993, by and between
Borrower and Lender as amended by the First Amendment thereto, dated November 5,
1993, the Second Amendment thereto dated October 19, 1994, the Third Amendment
thereto dated November 24, 1999, the Fourth Amendment thereto dated December 11,
2000 and the Fifth Amendment thereto dated of even date herewith, as the same
may be further amended from time to time (the "Loan Agreement") pertaining to
such loan; (b) the Note, of even date herewith, made by Borrower to Lender, in
the principal amount of THIRTEEN MILLION AND 00/DOLLARS ($13,000,000.00) and any
and all renewals, amendments, modifications, reductions and extensions thereof
and substitutions therefore (collectively the "Note") evidencing such loan; and
(c) any other instrument, document, certificate or affidavit heretofore, now or
hereafter given by Borrower evidencing or securing all or any part of the
foregoing (the same, together with the Loan Agreement and the Note, collectively
the "Loan Documents").

2. Guarantor agrees that, if any of the Indebtedness shall not be paid or any of
the Obligations shall not be performed by Borrower in accordance with the terms
and conditions of the Loan Documents, Guarantor shall immediately so pay such
Indebtedness and so perform such Obligations and the same shall become the
direct and primary indebtedness and obligation of Guarantor. Guarantor shall be
liable for the payment of the Indebtedness and the performance of the
Obligations as fully and to the same effect as if Guarantor was the maker or
principal obligor under the Loan Documents.

3. The liability of Guarantor under this Unconditional Guaranty of Payment and
Performance (the "Guaranty") is independent of the Indebtedness and Obligations
of Borrower, and a separate action or actions may be brought and prosecuted
against Guarantor regardless of whether any action is brought against Borrower
or whether Borrower be joined in any such action or actions. There shall be no
duty or obligation of Lender to exhaust any remedy in law or in equity against
Borrower or any security before bringing suit or instituting proceedings of any
kind against Guarantor.

4. The liability of Guarantor hereunder is joint and several with all others
guaranteeing payment of the Indebtedness and performance of the Obligations (the
"Other Guarantors"), and Guarantor may be sued without first, contemporaneously
or subsequently, suing any or all of the Other Guarantors. Further, Lender may.
compromise with any or all of the Other Guarantors for less than all of the
liability of Guarantor hereunder and release any or all of the Other Guarantors
from all further liability, without impairing the right of Lender to enforce the
liability hereunder of Guarantor.

5. Guarantor represents that, at the time of the execution and delivery of this
Guaranty, nothing exists to impair the liability of Guarantor hereunder or the
immediate effectiveness of this Guaranty.

6. The liability of Guarantor hereunder shall continue until fun payment of the
Indebtedness and fall performance of the Obligations, it being the intention
hereof that Guarantor shall remain liable for the payment of the Indebtedness
and for the performance of the Obligations notwithstanding any act, omission or
event which might, but for the provisions hereof, otherwise operate as a legal
or equitable discharge of Guarantor. Without limiting the generality of the
foregoing, the liability of Guarantor hereunder shall not be affected or
impaired on account of the following events:

<PAGE>

         a. any execution of any guaranty by any of the Other Guarantors,
         whether now or hereafter, or any invalidity or unenforceability of any
         such guaranty;

         b. any impairment, modification, release, discharge or limitation of
         liability of Borrower or any of the Other Guarantors, or any stay of
         lien enforcement proceedings against any of the same or their
         respective property, resulting from any receivership, insolvency,
         bankruptcy, dissolution, merger, reorganization or other similar
         proceeding under any present or future provision of the United States
         Bankruptcy Code or any other similar federal or state law or under the
         decision of any court;

         c. any voluntary or involuntary liquidation, sale or other disposition
         of all or substantially all of the assets of Borrower;

         d. any determination that Borrower is not liable for the payment of the
         Indebtedness or the performance of the Obligations because the act
         creating the Indebtedness or Obligations is ultra vires, because the
         officers or persons creating the Indebtedness or Obligations acted in
         excess of their authority, because of any exculpatory provision in the
         Loan Documents, because of any federal or state law or decision of any
         court, because of any illegality, irregularity, invalidity or
         unenforceability, in whole or in part, of the Loan Documents, or
         otherwise; or

         e. any failure of Lender to accelerate the maturity of the Indebtedness
         or the Obligations upon default thereon, to preserve the liability of
         any person for payment of the Indebtedness or performance of the
         Obligations, to take security therefore, to perfect its interest in any
         security taken or to exercise or enforce, by legal proceedings or
         otherwise, its rights against Borrower, any other person or any
         security taken;

whether or not Guarantor shall have any notice or knowledge of any of the
foregoing. Further, no delay in exercising any right, power or privilege under
this Guaranty or the Loan Documents shall operate as a waiver of such right,
power or privilege.

7. Guarantor authorizes Lender to deal in any manner with the Indebtedness and
the Obligations and with the security of every kind and character given to
secure the payment and performance thereof, provided that the principal portion
of the Indebtedness shall not be increased above the amount aforesaid without
the written consent of Guarantor, and consents to each action or omission of
Lender pursuant to such authority. Without limiting the generality of the
foregoing, Guarantor authorizes Lender, from time to time and whether one or
more times, to amend, modify or supplement any or all of the Loan Documents;
accept one or more replacement promissory notes; extend the time of payment or
maturity of or renew the Indebtedness or the Obligations; waive or compromise
any term or condition contained in the Loan Documents or any right, remedy or
power thereunder, including without limitation, any condition precedent to loan
advances or any right with respect to requiring additional security; accept
additional or replacement security; or release or surrender security.

8. The liability of Guarantor hereunder and the rights of Lender hereunder shall
be reinstated and revived with respect to any amount at any time paid against
the Indebtedness that thereafter is required to be restored or returned by
Lender as a result of insolvency, bankruptcy, reorganization or other similar
proceedings affecting Borrower, Guarantor, any of the Other Guarantors or any
other person, or any of the assets of the same, or as a result of any other fact
or circumstance, all as though such amount had not been paid.

9. Guarantor waives:

         a. notice of acceptance of this Guaranty by Lender, of loan advances by
         Lender and of presentment for payment, nonpayment or dishonor or
         protest of any of the Indebtedness, or any of the indebtedness of any
         person or entity pledged to Lender as security for the Indebtedness or
         the Obligations;

         b. any and all defenses, offsets and counterclaims of Borrower to
         liability under the Loan Documents or of Guarantor under this Guaranty,
         whether now existing or hereafter arising, it being understood and
         agreed that the guarantee of Guarantor hereunder is absolute and
         unconditional under any and all circumstances;

<PAGE>

         c. any duty on the part of Lender to disclose to Guarantor any fact or
         facts it may now or hereafter know about Borrower, regardless of
         whether Lender has reason to believe that any such facts materially
         increase the risk beyond that which Guarantor intends to assume, has
         reason to believe that such facts are unknown to Guarantor or has a
         reasonable opportunity to communicate such facts to Guarantor, it being
         understood and agreed that Guarantor is fully responsible for being and
         remaining informed of the financial condition of Borrower and of all
         circumstances bearing on the risk of nonpayment of the Indebtedness or
         nonperformance of the Obligations; and

         d. until the Indebtedness has been repaid and the Obligations have been
         performed, any and all rights of subrogation, contribution,
         reimbursement, indemnity, exoneration, implied contract, recourse to
         security or any other claim, including without limitation, any claim,
         as that term is defined in the United States Bankruptcy Code and any
         amendments, which Guarantor may now have or later acquire against
         Borrower, against any other entity directly or contingently liable for
         the payment of the Indebtedness or performance of the Obligations or
         against the security for the Indebtedness or the Obligations, arising
         from the existence or payment of the Indebtedness or existence or
         performance of the Obligations under this Guaranty.

10. Whether or not due Lender from Borrower, Guarantor agrees to pay to Lender
all damages, losses, costs, charges, expenses and liabilities of every kind,
nature and description suffered or incurred by Lender, including without
limitation attorneys' fees, arising in any manner out of, growing out of or
connected in any way with the enforcement of the Loan Documents or the
protection of any security created thereby, including the priority thereof, or
the enforcement of this Guaranty.

11. Guarantor subordinates any and all indebtedness of Borrower now or hereafter
owed to Guarantor to the Indebtedness and agrees that Guarantor shall not claim
any offset or other reduction of Guarantor's liability hereunder because of any
such indebtedness.

12. Guarantor shall deliver to Lender Guarantor's annually audited balance
sheets and income and expense statements within ninety (90) days after the end
of each fiscal year of Guarantor.

13. Guarantor shall not transfer any substantial assets to others for less than
fair value or in other than the ordinary course of business, without Lender's
prior written consent.

14. Nothing herein contained, nor contained in any of the other Loan Documents,
shall be construed or so operate as to require Guarantor to pay interest in an
amount or at a rate greater than the highest rate permissible under applicable
law. Should any interest or other charges paid by Guarantor result in the
computation or earning of interest in excess of the highest rate permissible
under applicable law, then any and all such excess shall be and the same is
waived by Lender, and all such excess shall be automatically principal sum shall
be paid by Lender to Guarantor, it being the intent of the parties hereto that
under no circumstances shall Guarantor be required to pay interest in excess of
the highest rate permissible under applicable law. All interest paid or agreed
to be paid to Lender shall, to the extent permitted under applicable law, be
amortized, prorated, allocated and spread throughout the full period until
payment in full of the Indebtedness, including the period of any renewal or
extensions thereof, so that interest thereon for such full period shall not
exceed the maximum amount permitted by applicable law. Notwithstanding anything
to the contrary herein contained, in the event that the interest rate to be
charged hereunder ever exceeds the highest rate permissible under applicable
law, thereby causing the interest accruing to be limited to such rate, then any
subsequent reduction in the interest rate to which Guarantor would otherwise be
entitled shall be held in abeyance until the total amount of interest accrued
equals the amount of interest which would have accrued had the interest rate not
been limited to the highest rate permissible under applicable law.

15. Any notice required or permitted to be given hereunder shall be in writing.
If mailed by first class United States mail, postage prepaid, registered or
certified with return receipt requested, then such notice shall be effective
upon its deposit in the mails. Notice given in any other manner shall be
effective only if and when received by the addressee. For purposes of notice,
the addresses of Guarantor and Lender shall be as set forth below; provided
however, that either party shall have the right to change such party's address
for notice hereunder to any other location within the continental United States
by the giving of thirty (3o) days' written notice to the other party.

<PAGE>

         If to Guarantor:           American Legal Publishing Corporation
                                    250 East Broad Street
                                    Columbus, Ohio 43215
                                    Attn: Si Sokol, Chairman

         with a copy to:            Bancinsurance Corporation
                                    250 East Broad Street
                                    Columbus, Ohio 43215
                                    ATTN: John S. Sokol, President

         If to Lender:              Fifth Third Bank
                                    Corporate Banking Division
                                    21 East State Street
                                    Columbus, Ohio 43215
                                    Attention: John Beardslee, Vice President

16. Whenever any amount is payable to Lender hereunder, Lender shall have the
right to set off such amount against amounts owing to Guarantor by Lender,
whether or not then due and payable, and against all other funds or property of
such Guarantor on deposit with or otherwise held in the custody of Lender, all
without notice to or demand on Guarantor, such notice and demand being waived.

17. All rights and remedies of Lender are cumulative and not alternative. If any
provision or any part of any provision contained in this Guaranty shall for any
reason be held or deemed to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provision or remaining part of the affected provision of this Guaranty, and this
Guaranty shall be construed as if such invalid, illegal or unenforceable
provision or part thereof had never been contained herein, and the remaining
provisions of this Guaranty shall remain in full force and effect.

18. Guarantor agrees that this Guaranty shall inure to the benefit of any may be
enforced by Lender or its endorsees, transferees, successors and assigns, and
shall be binding upon and enforceable against Guarantor and Guarantor's legal
representatives, heirs, successors and assigns. This Guaranty may be assigned
by Lender in whole or in part.

19. This Guaranty is executed and delivered by Guarantor at Columbus, Franklin
County, Ohio and is to be governed by and construed in accordance with the laws
of the State of Ohio. Guarantor consents to, and by execution of this Guaranty
submits to, the personal jurisdiction of the Court of Common Pleas of Franklin
County, Ohio and the United States District Court sitting in Columbus, Ohio for
the purposes of any judicial proceedings which are instituted for the
enforcement of this Guaranty. Guarantor agrees that venue is proper in either of
said courts.

20. This is the entire agreement and there are no other oral or written
agreements and no understandings affecting the terms hereof This Guaranty may be
modified only by subsequent written agreement executed by Guarantor and Lender.

21. Guarantor authorizes any attorney-at-law to appear in any court of record in
the State of Ohio or in any other state or territory of the United States at any
time after this Guaranty or the payment of the Indebtedness or the performance
of the Obligations becomes due, whether at stated maturity, accelerated maturity
or otherwise, to waive the issuing and service of process and to confess
judgment against Guarantor in favor of Lender for the amount due, together with
interest, expenses, the costs of suit and reasonable counsel fees, and thereupon
to release and waive all errors, rights of appeal and stays of execution. Such
authority shall not be exhausted by one exercise, but judgment may be confessed
from time to time as any sums and/or costs, expenses or reasonable counsel fees
shall be due, by filing an original or a photostatic copy of this Guaranty.

         LENDER, BY ACCEPTANCE OF THIS GUARANTY, AND GUARANTOR HEREBY MUTUALLY,
VOLUNTARILY, IRREVOCABLY AND UNCONDITIONALLY WAIVE FOR THE BENEFIT -OF THE OTHER
ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING
IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, IN CONNECTION WITH, RELATED TO,
OR INCIDENTAL TO THIS GUARANTY OR THE LOAN DOCUMENTS, THE TRANSACTIONS RELATED
THERETO OR THE RELATIONSHIP ESTABLISHED THEREBY. THIS PROVISION IS A MATERIAL
INDUCEMENT TO LENDER AND GUARANTOR TO ENTER INTO THIS TRANSACTION. IT SHALL NOT
IN ANY WAY AFFECT, WAIVE, LIMIT, AMEND OR

<PAGE>

MODIFY LENDER'S ABILITY TO PURSUE ITS REMEDIES INCLUDING, BUT NOT LIMITED TO,
ANY CONFESSION OF JUDGMENT OR COGNOVIT PROVISION CONTAINED IN THIS GUARANTY OR
THE LOAN DOCUMENTS.

          IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed
as of the 1st day of July, 2002.

   WARNING - BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
   TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN, AGAINST YOU
   WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
   FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER
   FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE
   AGREEMENT, OR ANY OTHER CAUSE.

                                         AMERICAN LEGAL PUBLISHING CORPORATION,
                                         an Ohio corporation

                                         By:             /s/Si Sokol
                                            -----------------------------------
                                         Its:            CHAIRMAN
                                             ----------------------------------

<PAGE>

                                   EXHIBIT 5.1

                UNCONDITIONAL GUARANTY OF PAYMENT AND PERFORMANCE

         FOR VALUE RECEIVED and for the purpose of inducing FIFTH THIRD BANK,
CENTRAL OHIO, AN OHIO banking corporation, having an office at 21 East State
Street, Columbus, Ohio 43215 ("Lender"), to make a loan in the amount of
THIRTEEN MILLION AND 00/DOLLARS ($13,000,000.00) to BANCINSURANCE CORPORATION,
AN OHIO corporation, having-an office at 250 East Broad Street, Columbus, Ohio
43215("Borrower"), from which the undersigned expects to derive direct monetary
benefit, the undersigned PAUL BOARDWAY & ASSOCIATES, INC., a New York
corporation ("Guarantor"), whose tax identification number is 14-1694648, agrees
for the benefit of Lender as follows:

1. Guarantor unconditionally and absolutely guarantees to Lender the full and
prompt payment, whether at stated or accelerated maturity or otherwise, of any
and all principal, interest, damages, losses, costs, charges, expenses and
liabilities, whether fixed or contingent (collectively the "Indebtedness") and
the complete, faithful and punctual performance of any and all other obligations
(collectively the "Obligations") of Borrower to Lender under the terms and
conditions of (a) the Credit Agreement, dated January 25, 1993, by and between
Borrower and Lender as amended by the First Amendment thereto, dated November 5,
1993, the Second Amendment thereto dated October 19, 1994, the Third Amendment
thereto dated November 24, 1999, the Fourth Amendment thereto dated December 11,
2000 and the Fifth Amendment thereto dated of even date herewith, as the same
may be further amended from time to time (the "Loan Agreement") pertaining to
such loan; (b) the Note, of even date herewith, made by Borrower to Lender, in
the principal amount of THIRTEEN MILLION AND 00/DOLLARS ($13,000,000.00) and any
and all renewals, amendments, modifications, reductions and extensions thereof
and substitutions therefore (collectively the "Note") evidencing such loan; and
(c) any other instrument, document, certificate or affidavit heretofore, now or
hereafter given by Borrower evidencing or securing all or any part of the
foregoing (the same, together with the Loan Agreement and the Note, collectively
the "Loan Documents").

2. Guarantor agrees that, if any of the Indebtedness shall not be paid or any of
the Obligations shall not be performed by Borrower in accordance with the terms
and conditions of the Loan Documents, Guarantor shall immediately so pay such
Indebtedness and so perform such Obligations and the same shall become the
direct and primary indebtedness and obligation of Guarantor. Guarantor shall be
liable for the payment of the Indebtedness and the performance of the
Obligations as fully and to the same effect as if Guarantor was the maker or
principal obligor under the Loan Documents.

3. The liability of Guarantor under this Unconditional Guaranty of Payment and
Performance (the "Guaranty") is independent of the Indebtedness and Obligations
of Borrower, and a separate action or actions may be brought and prosecuted
against Guarantor regardless of whether any action is brought against Borrower
or whether Borrower be joined in any such action or actions. There shall be no
duty or obligation of Lender to exhaust any remedy in law or in equity against
Borrower or any security before bringing suit or instituting proceedings of any
kind against Guarantor.

4. The liability of Guarantor hereunder is joint and several with all others
guaranteeing payment of the Indebtedness and performance of the Obligations (the
"Other Guarantors"), and Guarantor may be sued without first, contemporaneously
or subsequently, suing any or all of the Other Guarantors. Further, Lender may
compromise with any or all of the Other Guarantors for less than all of the
liability of Guarantor hereunder and release any or all of the Other Guarantors
from all further liability, without impairing the right of Lender to enforce the
liability hereunder of Guarantor.

5. Guarantor represents that, at the time of the execution and delivery of this
Guaranty, nothing exists to impair the liability of Guarantor hereunder or the
immediate effectiveness of this Guaranty.

6. The liability of Guarantor hereunder shall continue until fun payment of the
Indebtedness and fall performance of the Obligations, it being the intention
hereof that Guarantor shall remain liable for the payment of the Indebtedness
and for the performance of the Obligations notwithstanding any act, omission or
event which might, but for the provisions hereof, otherwise operate as a legal
or equitable discharge of Guarantor. Without limiting the generality of the
foregoing, the liability of Guarantor hereunder shall not be affected or
impaired on account of the following events:

         a. any execution of any guaranty by any of the Other Guarantors,
         whether now or hereafter, or any invalidity or unenforceability of any
         such guaranty;

<PAGE>

         b. any impairment, modification, release, discharge or limitation of
         liability of Borrower or any of the Other Guarantors, or any stay of
         lien enforcement proceedings against any of the same or their
         respective property, resulting from any receivership, insolvency,
         bankruptcy, dissolution, merger, reorganization or other similar
         proceeding under any present or future provision of the United States
         Bankruptcy Code or any other similar federal or state law or under the
         decision of any court;

         c. any voluntary or involuntary liquidation, sale or other disposition
         of all or substantially all of the assets of Borrower;

         d. any determination that Borrower is not liable for the payment of the
         Indebtedness or the performance of the Obligations because the act
         creating the Indebtedness or Obligations is ultra vires, because the
         officers or persons creating the Indebtedness or Obligations acted in
         excess of their authority, because of any exculpatory provision in the
         Loan Documents, because of any federal or state law or decision of any
         court, because of any illegality, irregularity, invalidity or
         unenforceability, in whole or in part, of the Loan Documents, or
         otherwise; or

         e. any failure of Lender to accelerate the maturity of the Indebtedness
         or the Obligations upon default thereon, to preserve the liability of
         any person for payment of the Indebtedness or performance of the
         Obligations, to take security therefore, to perfect its interest in any
         security taken or to exercise or enforce, by legal proceedings or
         otherwise, its rights against Borrower, any other person or any
         security taken;

whether or not Guarantor shall have any notice or knowledge of any of the
foregoing. Further, no delay in exercising any right, power or privilege under
this Guaranty or the Loan Documents shall operate as a waiver of such right,
power or privilege.

7. Guarantor authorizes Lender to deal in any manner with the Indebtedness and
the Obligations and with the security of every kind and character given to
secure the payment and performance thereof, provided that the principal portion
of the Indebtedness shall not be increased above the amount aforesaid without
the written consent of Guarantor, and consents to each action or omission of
Lender pursuant to such authority. Without limiting the generality of the
foregoing, Guarantor authorizes Lender, from time to time and whether one or
more times, to amend, modify or supplement any or all of the Loan Documents;
accept one or more replacement promissory notes; extend the time of payment or
maturity of or renew the Indebtedness or the Obligations; waive or compromise
any term or condition contained in the Loan Documents or any right, remedy or
power thereunder, including without limitation, any condition precedent to loan
advances or any right with respect to requiring additional security; accept
additional or replacement security; or release or surrender security.

8. The liability of Guarantor hereunder and the rights of Lender hereunder shall
be reinstated and revived with respect to any amount at any time paid against
the Indebtedness that thereafter is required to be restored or returned by
Lender as a result of insolvency, bankruptcy, reorganization or other similar
proceedings affecting Borrower, Guarantor, any of the Other Guarantors or any
other person, or any of the assets of the same, or as a result of any other fact
or circumstance, all as though such amount had not been paid.

9.       Guarantor waives:

         a. notice of acceptance of this Guaranty by Lender, of loan advances by
         Lender and of presentment for payment, nonpayment or dishonor or
         protest of any of the Indebtedness, or any of the indebtedness of any
         person or entity pledged to Lender as security for the Indebtedness or
         the Obligations;

         b. any and all defenses, offsets and counterclaims of Borrower to
         liability under the Loan Documents or of Guarantor under this Guaranty,
         whether now existing or hereafter arising, it being understood and
         agreed that the guarantee of Guarantor hereunder is absolute and
         unconditional under any and all circumstances;

         C. any duty on the part of Lender to disclose to Guarantor any fact or
         facts it may now or hereafter know about Borrower, regardless of
         whether Lender has reason to believe that any such facts materially
         increase the risk beyond that which Guarantor intends to assume, has
         reason to believe that such facts are unknown to Guarantor or has a
         reasonable opportunity to communicate such facts to Guarantor, it being
         understood and agreed that Guarantor is fully responsible for being and
         remaining informed of the financial condition of Borrower and of all
         circumstances bearing on the risk of nonpayment of the Indebtedness or
         nonperformance of the Obligations; and

<PAGE>

         d. until the Indebtedness has been repaid and the Obligations have been
         performed, any and all rights of subrogation, contribution,
         reimbursement, indemnity, exoneration, implied contract, recourse to
         security or any other claim, including without limitation, any claim,
         as that term is defined in the United States Bankruptcy Code and any
         amendments, which Guarantor may now have or later acquire against
         Borrower, against any other entity directly or contingently liable for
         the payment of the Indebtedness or performance of the Obligations or
         against the security for the Indebtedness or the Obligations, arising
         from the existence or payment of the Indebtedness or existence or
         performance of the Obligations under this Guaranty.

10. Whether or not due Lender from Borrower, Guarantor agrees to pay to Lender
all damages, losses, costs, charges, expenses and liabilities of every kind,
nature and description suffered or incurred by Lender, including without
limitation attorneys' fees, arising in any manner out of, growing out of or
connected in any way with the enforcement of the Loan Documents or the
protection of any security created thereby, including the priority thereof, or
the enforcement of this Guaranty.

11. Guarantor subordinates any and all indebtedness of Borrower now or hereafter
owed to Guarantor to the Indebtedness and agrees that Guarantor shall not claim
any offset or other reduction of Guarantor's liability hereunder because of any
such indebtedness.

12. Guarantor shall not transfer any substantial assets to others for less than
fair value or in other than the ordinary course of business, without Lender's
prior written consent.

13. Nothing herein contained, nor contained in any of the other Loan Documents,
shall be construed or so operate as to require Guarantor to pay interest in an
amount or at a rate greater than the highest rate permissible under applicable
law. Should any interest or other charges paid by Guarantor result in the
computation or earning of interest in excess of the highest rate permissible
under applicable law, then any and all such excess shall be and the same is
waived by Lender, and all such excess shall be automatically credited against
and in reduction of the principal sum, and any portion of said excess which
exceeds the principal sum shall be paid by Lender to Guarantor, it being the
intent of the parties hereto that under no circumstances shall Guarantor be
required to pay interest in excess of the highest rate permissible under
applicable law. All interest paid or agreed to be paid to Lender shall, to the
extent permitted under applicable law, be amortized, prorated, allocated and
spread throughout the full period until payment in full of the Indebtedness,
including the period of any renewal or extensions thereof, so that interest
thereon for such full period shall not exceed the maximum amount permitted by
applicable law. Notwithstanding anything to the contrary herein contained, in
the event that the interest rate to be charged hereunder ever exceeds the
highest rate permissible under applicable law, thereby causing the interest
accruing to be limited to such rate, then any subsequent reduction in the
interest rate to which Guarantor would otherwise be entitled shall be held in
abeyance until the total amount of interest accrued equals the amount of
interest which would have accrued had the interest rate not been limited to the
highest rate permissible under applicable law.

14. Any notice required or permitted to be given hereunder shall be in writing.
If mailed by first class United States mail, postage prepaid, registered or
certified with return receipt requested, then such notice shall be effective
upon its deposit in the mails. Notice given in any other manner shall be
effective only if and when received by the addressee. For purposes of notice,
the addresses of Guarantor and Lender shall be as set forth below; provided
however, that either party shall have the right to change such party's address
for notice hereunder to any other location within the continental United States
by the giving of thirty (3o) days' written notice to the other party.

         If to Guarantor:           Paul Boardway & Associates, Inc.
                                    250 East Broad Street
                                    Columbus, Ohio 43215
                                    Attn: John S. Sokol, Chairman

         with a copy to:            Bancinsurance Corporation
                                    250 East Broad Street
                                    Columbus, Ohio 43215
                                    Attn: John S. Sokol, President

         If to Lender:              Fifth Third Bank
                                    Corporate Banking Division
                                    21 East State Street
                                    Columbus, Ohio 43215
                                    Attention: John Beardslee, Vice President

<PAGE>

15. Whenever any amount is payable to Lender hereunder, Lender shall have the
right to set off such amount against amounts owing to Guarantor by Lender,
whether or not then due and payable, and against all other funds or property of
such Guarantor on deposit with or otherwise held in the custody of Lender, all
without notice to or demand on Guarantor, such notice and demand being waived.

16. All rights and remedies of Lender are cumulative and not alternative. If any
provision or any part of any provision contained in this Guaranty shall for any
reason be held or deemed to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provision or remaining part of the affected provision of this Guaranty, and this
Guaranty shall be construed as if such invalid, illegal or unenforceable
provision or part thereof had never been contained herein, and the remaining
provisions of this Guaranty shall remain in full force and effect.

17. Guarantor agrees that this Guaranty shall inure to the benefit of and may be
enforced by Lender or its endorsees, transferees, successors and assigns, and
shall be binding upon and enforceable against Guarantor and Guarantor's legal
representatives, heirs, successors and assigns. This Guaranty may be assigned by
Lender in whole or in part.

18. This Guaranty is executed and delivered by Guarantor at Columbus, Franklin
County, Ohio and is to be governed by and construed in accordance with the laws
of the State of Ohio. Guarantor consents to, and by execution of this Guaranty
submits to, the personal jurisdiction of the Court of Common Pleas of Franklin
County, Ohio and the United States District Court sitting in Columbus, Ohio for
the purposes of any judicial proceedings which are instituted for the
enforcement of this Guaranty. Guarantor agrees that venue is proper in either of
said courts.

19. This is the entire agreement and there are no other oral or written
agreements and no understandings affecting the terms hereof This Guaranty may be
modified only by subsequent written agreement executed by Guarantor and Lender.

20. Guarantor authorizes any attorney-at-law to appear in any court of record in
the State of Ohio or in any other state or territory of the United States at any
time after this Guaranty or the payment of the Indebtedness or the performance
of the Obligations becomes due, whether at stated maturity, accelerated maturity
or otherwise, to waive the issuing and service of process and to confess
judgment against Guarantor in favor of Lender for the amount due, together with
interest, expenses, the costs of suit and reasonable counsel fees, and thereupon
to release and waive all errors, rights of appeal and stays of execution. Such
authority shall not be exhausted by one exercise, but judgment may be confessed
from time to time as any sums and/or costs, expenses or reasonable counsel fees
shall be due, by filing an original or a photostatic copy of this Guaranty.

         LENDER, BY ACCEPTANCE OF THIS GUARANTY, AND GUARANTOR HEREBY MUTUALLY,
VOLUNTARILY, IRREVOCABLY AND UNCONDITIONALLY WAIVE FOR THE BENEFIT -OF THE OTHER
ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING
IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, IN CONNECTION WITH, RELATED TO,
OR INCIDENTAL TO THIS GUARANTY OR THE LOAN DOCUMENTS, THE TRANSACTIONS RELATED
THERETO OR THE RELATIONSHIP ESTABLISHED THEREBY. THIS PROVISION IS A MATERIAL
INDUCEMENT TO LENDER AND GUARANTOR TO ENTER INTO THIS TRANSACTION. IT SHALL NOT
IN ANY WAY AFFECT, WAIVE, LIMIT, AMEND OR MODIFY LENDER'S ABILITY TO PURSUE ITS
REMEDIES INCLUDING, BUT NOT LIMITED TO, ANY CONFESSION OF JUDGMENT OR COGNOVIT
PROVISION CONTAINED IN THIS GUARANTY OR THE LOAN DOCUMENTS.

         IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed
as of the 1st day of July, 2002.

WARNING - BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN, AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT,
OR ANY OTHER CAUSE.

                                            PAUL BOARDWAY & ASSOCIATES,
                                            INC., a New York corporation

                                           By:           /s/John S. Sokol
                                              ---------------------------------
                                           Its:          President
                                               --------------------------------<PAGE>
                                                                EXHIBIT 10.6.4

                                 SIMMONS COMPANY

                               FOURTH AMENDMENT TO
                          CREDIT AND GUARANTY AGREEMENT

          THIS FOURTH AMENDMENT (this "AMENDMENT") dated as of October 21, 2002
to the CREDIT AND GUARANTY AGREEMENT dated as of October 29, 1998 (as amended by
that certain First Amendment to Credit and Guaranty Agreement dated as of March
1, 1999, that certain Second Amendment to Credit and Guaranty Agreement dated as
of March 22, 2000, and that certain Third Amendment and Waiver to Credit and
Guaranty Agreement dated as of January 5, 2001, the "CREDIT AGREEMENT") is
entered into by and among SIMMONS COMPANY, a Delaware corporation (the
"COMPANY"), SIMMONS HOLDINGS, INC., a Delaware corporation ("HOLDINGS"), the
CREDIT SUPPORT PARTIES listed on the signature papers hereto, CERTAIN FINANCIAL
INSTITUTIONS listed on the signature pages hereto, GOLDMAN SACHS CREDIT PARTNERS
L.P., as Syndication Agent and UBS AG, STAMFORD BRANCH, as Administrative Agent.
Capitalized terms used herein without definition shall have the same meanings
herein as set forth in the Credit Agreement and in the amendments contained in
Section 1 hereof.

                                   RECITALS

          WHEREAS, Company and Requisite Lenders desire to amend the Credit
Agreement as set forth below.

          NOW, THEREFORE, in consideration of the premises and the agreements,
provisions and covenants herein contained, the parties hereto agree as follows:

SECTION 1. AMENDMENTS TO CREDIT AGREEMENT

1.1 AMENDMENTS TO SECTION 1: DEFINITIONS; INTERPRETATION.

    A.   Section 1 of the Credit Agreement is hereby amended by adding the
following definitions in proper alphabetical order:

                  "FOURTH AMENDMENT" means that certain Fourth Amend ment to
         Credit and Guaranty Agreement dated as of October 21, 2002 among
         Company, Holdings, Syndication Agent, Administrative Agent, and the
         financial institutions and the Credit Support Parties listed on the
         signature pages thereto.

<PAGE>

                  "FOURTH AMENDMENT EFFECTIVE DATE" means the date of
         satisfaction of the conditions referred to in Section 2 of the Fourth
         Amendment.

    B.   Section 1 of the Credit Agreement is hereby further amended by
amending and restating the following definitions in their entirety as follows:

                  "AGENT" means each of Syndication Agent, Joint Lead
         Arrangers and Administrative Agent.

                  "CONSOLIDATED CASH INTEREST EXPENSE" means, for any period,
         Consolidated Interest Expense for such period excluding, however, any
         interest expense not payable in Cash (including amortization of
         discount and amortization of debt issuance costs), but excluding,
         however, any amounts referred to in Section 2.B of the Fourth
         Amendment paid on or before the Fourth Amendment Effective Date.

                  "CONSOLIDATED EXCESS CASH FLOW" means, for any period, an
         amount (if positive) equal to the difference of (I) the sum, without
         duplication, of the amounts for such period of (a) Consolidated
         Adjusted EBITDA, PLUS (b) the Consolidated Working Capital Adjustment
         (excluding any non-cash adjustments to Working Capital Adjustment),
         MINUS (ii) the sum, without duplication, of the amounts for such
         period of (a) voluntary and scheduled repayments of Consolidated
         Total Debt (excluding repayments of Revolving Loans or Swing Line
         Loans except to the extent the Revolving Loan Commitments are
         permanently reduced in connection with such repayments), PLUS (b)
         Consolidated Capital Expenditures (net of any proceeds of any related
         financings with respect to such expenditures), PLUS (c) Consolidated
         Cash Interest Expense, PLUS (d) the provision for current taxes based
         on income of Company and its Subsidiaries and payable in cash with
         respect to such period, PLUS (e) Management Fees actually paid in
         cash during such period, PLUS (f) the cash portion of any purchase
         price payments made during such period by Company or any of its
         Subsidiaries in connection with any Permitted Acquisi tion, PLUS (g)
         the cash portion of any purchase price payments made during such
         period by Company or any of its Subsidiaries in connec tion with the
         acquisition of any Intellectual Property, PLUS (h) the cash portion
         of any Restricted Junior Payments made during such period pursuant to
         Section 6.5(v).

                                       2

<PAGE>
                  "MANAGEMENT FEES" means (i) with respect to annual
         management fees payable by Company pursuant to the Fenway Agreement,
         an amount for any Fiscal Year not to exceed the lesser of (1) the
         greater of (x) 0.25% of the annual net sales of Company for the prior
         Fiscal Year and (y) 2.5% of the Consolidated Adjusted EBITDA for the
         prior Fiscal Year and (2) $3,000,000, PLUS (ii) any other fees
         payable by Company in connection with other transactions pursuant to
         the Fenway Agreement; PROVIDED, that solely for purposes of
         calculations made pursuant to clause (vi) of the definition of
         Consolidated Adjusted EBITDA, such other transaction fees shall not
         exceed 1.5% of the aggregate transaction value for any such other
         transactions.

                  "NOTICE" means a Funding Notice, a Request for Issuance or a
         Conversion/Continuation Notice.

         C. Section 1 of the Credit Agreement is hereby further amended by
amending and restating the phrase immediately preceding section (i) in the
definition of "INTEREST PERIOD" in its entirety as follows:

         " "INTEREST PERIOD" means, in connection with a Eurodollar Rate Loan,
         an interest period of one-, two-, three-, six- or, with respect to
         Revolving Loans and Tranche A Term Loans only, twelve- months (in the
         case of the latter period, only if acceptable to all Lenders of such
         Loans), as selected by Company in the applicable Notice,"

         D. To the extent not otherwise amended pursuant to the foregoing
provisions of this Section 1.1, on and after the Fourth Amendment Effective
Date, all references in the Credit Agreement and in any other Credit Document
to "INCREMENTAL TRANCHE C TERM LOAN COMMITMENTS", "INCREMENTAL TRANCHE C TERM
LOANS", "INCREMENTAL TRANCHE C TERM LOAN LENDER","INCREMENTAL TRANCHE C TERM
LOAN NOTICE" and "INCREMENTAL TRANCHE C TERM LOAN SYNDICATION AGENT" shall be
deleted.

1.2      AMENDMENTS TO SECTION 2: CREDIT EXTENSIONS.

         A. Section 2.13(e) of the Credit Agreement is hereby amended and
restated in its entirety as follows:

         "(e) In the event that there shall be Consolidated Excess Cash Flow
         for any Fiscal Year, Company shall, no later than ninety (90) days
         after the end of such Fiscal Year, prepay the Loans and/or the
         Commitments shall be permanently reduced in an aggregate amount equal
         to 75% of such Consolidated Excess Cash Flow; PROVIDED, during any
         period in which the Leverage Ratio (determined for any such period by
         reference to the most recent Compliance Certificate

                                      3
<PAGE>

         delivered pursuant to Section 5.1(d) calculating the Leverage Ratio)
         shall be 3.75:1.00 or less, Company shall be required to make the
         prepayment and/or reduction required hereby in an amount equal to 50%
         of such Consolidated Excess Cash Flow; PROVIDED FURTHER that for
         Fiscal Year 2002 only, such prepayment and/or reduction shall be
         further reduced by an aggregate amount equal to $9,300,000."

      B. Section 2.25 of the Credit Agreement is hereby amended by deleting it
in its entirety and substituting the following therefor:

               "2.25 [RESERVED]"

1.3      AMENDMENTS TO SECTION 5: AFFIRMATIVE COVENANTS.

         A. Section 5.1(k) of the Credit Agreement is hereby amended by deleting
the reference to "30 days" set forth therein and substituting "45 days"
therefor.

         B. Section 5.10 of the Credit Agreement is hereby amended by deleting
it in its entirety and substituting the following therefor:

                "5.10.   [RESERVED]"

1.4      AMENDMENTS TO SECTION 6: NEGATIVE COVENANTS.

         A.   Section 6.2 of the Credit Agreement is hereby amended by amending
and restating the last sentence therein in its entirety as follows:

              "Except with respect to (i) specific property encumbered to
              secure payment of particular Indebtedness, (ii) specific property
              to be sold pursuant to an executed agreement with respect to an
              Asset Sale, and (iii) the agreement to be entered into with
              NetJets Sales, Inc. for the purchase of up to1/8 fractional
              interest in a corporate jet by Company, no Credit Party nor any
              of its Subsidiaries shall enter into any agreement prohibiting
              the creation or assumption of any Lien upon any of its properties
              or assets, whether now owned or hereafter acquired."

         B.   Section 6.3 of the Credit Agreement is hereby amended by deleting
the "and" at the end of clause (viii) thereof deleting the "." at the end of
clause (ix) thereof, and inserting "and" in lieu thereof, and further by
inserting the following clause (x) at the end thereof:

               " (x) Notwithstanding the limitations set forth in clause (y) of
               Section 6.3(i), Company and its Subsidiaries may make and own
               Investments in one Foreign Subsidiary created and operated as a
               captive insurance company (the "CAPTIVE INSURANCE SUBSIDIARY") in
               an aggregate amount not to exceed $7,500,000 (net of any

                                       4
<PAGE>

               dividends or distributions, or prepayments or payments of
               interest by the Captive Insurance Subsidiary to Company or any of
               its Subsidiary Guarantors)."

            C. Section 6.4 of the Credit Agreement is hereby amended by deleting
the "and" at the end of clause (vi) thereof, adding "add" at the end of clause
(vii) thereof, and inserting the following clause (viii) at the end thereof:

               " (viii) Company and its Subsidiaries may become and remain
               liable with respect to Contingent Obligations consisting of
               guarantees by the Company and its Subsidiaries of Indebtedness,
               leases and other Contractual Obligations permitted to be incurred
               by the Company or its Subsidiaries."

            D. Section 6.5(iii) of the Credit Agreement is hereby amended by
restating clause (a) set forth therein in its entirety as follows:

               "(a) in an aggregate amount not to exceed $850,000 in any Fiscal
               Year, to the extent necessary to permit Holdings to pay the
               ordinary operating expenses of Holdings (including without
               limitation, directors' fees, indemnification obligations,
               professional fees and expenses);"

            E. Section 6.5(v)(b) of the Credit Agreement is hereby amended by
adding the following at the end thereof:

                "; except, that such aggregate amount shall not exceed
                $6,000,000 only for the 2002 Fiscal Year."

            F. Section 6.5 of the Credit Agreement is hereby amended by deleting
the "and" at the end of clause (iv) thereof and inserting the following clauses
(vi) and (vii) at the end thereof:

                " (vi) Company may make Restricted Junior Payments in respect of
                any repurchase, redemption or repayment of the Senior
                Subordinated Notes; PROVIDED, that (x) at the time of such
                Restricted Junior Payment and immediately after giving effect
                thereto, no Event of Default shall have occurred and be
                continuing, (y) the aggregate amount of such Restricted Junior
                Payments made pursuant to this clause (vi) shall not exceed
                $20,000,000 at any time, and (z) at the time such Restricted
                Junior Payment is made, each of the Leverage Ratio and the
                Senior Debt Leverage Ratio, respectively, shall not exceed the
                correlative ratios indicated below as of the last day of the
                Fiscal Quarter immediately preceding such Restricted Junior
                Payment as indicated (both before and immediately after giving
                effect to such Restricted Junior Payment):

                                        5

<PAGE>

                  LEVERAGE RATIO:
<TABLE>
<CAPTION>

========================================================== ==================================
                  FISCAL QUARTER ENDING                                 MAXIMUM
                                                                     LEVERAGE RATIO
---------------------------------------------------------- ----------------------------------
<S>                                                                    <C>
September 30, 2002                                                     3.75:1.00
December 31, 2002                                                      3.75:1.00
March 31, 2003                                                         3.75:1.00
June 30, 2003                                                          3.75:1.00
September 30, 2003                                                     3.50:1.00
December 31, 2003                                                      3.50:1.00
March 31, 2004                                                         3.25:1.00
June 30, 2004                                                          3.25:1.00
September 30, 2004                                                     3.00:1.00

---------------------------------------------------------- ----------------------------------
December 31, 2004                                                      3.00:1.00
---------------------------------------------------------- ----------------------------------
March 31, 2005                                                         2.75:1.00
and thereafter
========================================================== ==================================
<CAPTION>

                  SENIOR DEBT LEVERAGE RATIO:

                  FISCAL QUARTER ENDING                           MAXIMUM SENIOR DEBT
                                                                     LEVERAGE RATIO
========================================================== ==================================
<S>                                                                    <C>
September 30, 2002                                                     2.00:1.00
December 31, 2002                                                      2.00:1.00
March 31, 2003                                                         2.00:1.00
June 30, 2003                                                          2.00:1.00
September 30, 2003                                                     1.75:1.00
December 31, 2003                                                      1.75:1.00
March 31, 2004                                                         1.50:1.00
June 30, 2004                                                          1.50:1.00
September 30, 2004                                                     1.25:1.00
and thereafter
========================================================== ==================================
</TABLE>

                                        6

<PAGE>

                Anything contained herein to the contrary notwithstanding, and
                solely for the purposes of calculating the Leverage Ratio and
                the Senior Debt Leverage Ratio with respect to the provisions of
                this Section 6.5(vi) only, (x) for the period beginning on the
                Fourth Amendment Effective Date until the delivery of the
                Compliance Certificate for the Fiscal Quarter ended on September
                30, 2002, Consolidated Adjusted EBITDA shall be calculated as of
                the Fiscal Quarter ending on June 30, 2002, and (y) for any
                period beginning thereafter, Consolidated Adjusted EBITDA shall
                be calculated as of the last Fiscal Quarter preceding such date
                for which a Compliance Certificate has been delivered to the
                Administrative Agent and the Lenders; and

                        (vii) Company may make Restricted Junior Payments to
                Holdings to permit Holdings to repurchase, redeem or repay the
                Holdings Notes immediately upon receipt of such Restricted
                Junior Payments; PROVIDED, that (x) at the time of such
                Restricted Junior Payment and immediately after giving effect
                thereto, no Event of Default shall have occurred and be
                continuing and (y) the aggregate amount of such Restricted
                Junior Payments made pursuant to this clause (vii) shall not
                exceed the maximum amount permitted under the Senior
                Subordinated Note Indenture; "

            G. Section 6.6(a) through Section 6.6(d) is hereby amended by
deleting such Sections in their entirety and replacing them with the following:

                        "(a) MINIMUM FIXED CHARGE COVERAGE RATIO. Company shall
                not permit the ratio of (i) Consolidated Adjusted EBITDAR to
                (ii) Consolidated Fixed Charges for any four-Fiscal Quarter
                period ending as of the last day of each Fiscal Quarter set
                forth in the table below to be less than the ratio set forth
                beside such quarter in such table:

<TABLE>
<CAPTION>

                  FISCAL QUARTER ENDING                           MINIMUM FIXED CHARGE
                                                                     COVERAGE RATIO
========================================================== ==================================
<S>                                                                    <C>
September 30, 2002                                                     2.10:1.00
December 31, 2002                                                      2.10:1.00
March 31, 2003                                                         2.15:1.00
June 30, 2003                                                          2.15:1.00
September 30, 2003                                                     2.15:1.00
December 31, 2003                                                      2.15:1.00
March 31, 2004                                                         2.25:1.00
June 30, 2004                                                          2.25:1.00
========================================================== ==================================
</TABLE>

                                       7

<PAGE>

<TABLE>
<CAPTION>

                  Fiscal Quarter Ending                           Minimum Fixed Charge
========================================================== ==================================
<S>                                                                    <C>
September 30, 2004                                                     2.25:1.00
December 31, 2004                                                      2.25:1.00
March 31, 2005                                                         2.25:1.00
and thereafter
========================================================== ==================================
</TABLE>

                (b) MINIMUM CASH INTEREST COVERAGE RATIO. Company shall not
        permit the ratio of (I) Consolidated Adjusted EBITDA to (II)
        Consolidated Cash Interest Expense for any four-Fiscal Quarter period
        ending as of the last day of each Fiscal Quarter set forth in the table
        below to be less than the ratio set forth beside such quarter in such
        table:

<TABLE>
<CAPTION>
                                                                 MINIMUM CASH INTEREST
                  FISCAL QUARTER ENDING                              COVERAGE RATIO

========================================================== ==================================
<S>                                                                    <C>
September 30, 2002                                                     3.00:1.00
December 31, 2002                                                      3.00:1.00
March 31, 2003                                                         3.00:1.00
June 30, 2003                                                          3.00:1.00
September 30, 2003                                                     3.00:1.00
December 31, 2003                                                      3.00:1.00
March 31, 2004                                                         3.00:1.00
June 30, 2004                                                          3.00:1.00
September 30, 2004                                                     3.00:1.00
and thereafter
========================================================== ==================================
</TABLE>

                (c) MAXIMUM LEVERAGE RATIO. Company shall not permit the
        Leverage Ratio as of the last day of each Fiscal Quarter set forth in
        the table below to exceed the ratio set forth beside such quarter in
        such table:

<TABLE>
<CAPTION>

                  FISCAL QUARTER ENDING                                 MAXIMUM
                                                                     LEVERAGE RATIO
========================================================== ==================================
<S>                                                                    <C>
September 30, 2002                                                     4.00:1.00
December 31, 2002                                                      4.00:1.00
March 31, 2003                                                         4.00:1.00
</TABLE>

                                        8

<PAGE>

<TABLE>
<CAPTION>

                  Fiscal Quarter Ending                                 Maximum
========================================================== ==================================
<S>                                                                    <C>
June 30, 2003                                                          4.00:1.00
September 30, 2003                                                     3.75:1.00
December 31, 2003                                                      3.75:1.00
March 31, 2004                                                         3.50:1.00
June 30, 2004                                                          3.50:1.00
September 30, 2004                                                     3.25:1.00

---------------------------------------------------------- ----------------------------------
December 31, 2004                                                      3.25:1.00
---------------------------------------------------------- ----------------------------------
March 31, 2005                                                         3.00:1.00
and thereafter
========================================================== ==================================
</TABLE>

                (d) MAXIMUM SENIOR DEBT LEVERAGE RATIO. Company shall not permit
        the Senior Debt Leverage Ratio as of the last day of each Fiscal Quarter
        set forth in the table below to exceed the ratio set forth beside such
        quarter in such table:

<TABLE>
<CAPTION>

                  FISCAL QUARTER ENDING                           MAXIMUM SENIOR DEBT
                                                                     LEVERAGE RATIO
========================================================== ==================================
<S>                                                                    <C>
September 30, 2002                                                     2.25:1.00
December 31, 2002                                                      2.25:1.00
March 31, 2003                                                         2.25:1.00
June 30, 2003                                                          2.25:1.00
September 30, 2003                                                     2.00:1.00
December 31, 2003                                                      2.00:1.00
March 31, 2004                                                         1.75:1.00
June 30, 2004                                                          1.75:1.00
September 30, 2004                                                     1.50:1.00
and thereafter
========================================================== ==================================
</TABLE>

         H. Section 6.7(iv) of the Credit Agreement is hereby amended by
deleting the reference to "$3,000,000" set forth therein and substituting
"$10,000,000" therefor.

                                        9

<PAGE>

      I. Section 6.7 of the Credit Agreement is hereby amended by deleting the
"and" at the end of clause (vi) thereof, deleting the "." at the end of clause
(vii) thereof, and inserting the phrase "and" in lieu thereof, and further by
inserting the following clause (viii) at the end thereof:

            " (viii) Company and its Subsidiaries may make Investments in
            accordance with Section 6.3."

      J. Section 6.13(c) of the Credit Agreement is hereby amended by amending
and restating the first parenthetical in its entirety as follows:

            "(other than the Holdings Notes or Indebtedness issued by Holdings
            from time to time which is evidenced by promissory notes or other
            contractual obligations in order for Holdings to repurchase its
            capital stock, phantom stock or options from deceased, terminated or
            retired employees)."

1.5    AMENDMENTS TO SECTION 9: AGENTS.

      A. Section 9.8 of the Credit Agreement is hereby amended by adding the
following clause (d) at the end thereof:

            " (d) Company and each Guarantor hereby authorize the Administrative
            Agent to file any financing statements or continuation statements,
            and amendments to financing statements in any jurisdic tions and
            with any filing offices as the Administrative may determine, in its
            sole discretion, are necessary or advisable to perfect or to
            maintain the perfection of the first priority security interest
            granted to the Administrative Agent under any of the Credit
            Documents. Such financing statements may describe the Collateral in
            the same manner as described in the Pledge and Security Agreement or
            may contain an indication or description of collateral that
            describes such property in any other manner as the Administrative
            Agent may determine, in its sole discretion, is necessary, advisable
            or prudent to ensure the perfection of the security interest in the
            Collateral granted to the Administrative Agent under any of the
            Credit Documents, including, without limitation, describing such
            property as "all assets" or "all personal property, whether now
            owned or hereafter acquired."

_________
1.6      AMENDMENTS TO SECTION 10: AMENDMENTS AND WAIVERS.

         A. Section 10.5(d)(vi) of the Credit Agreement is hereby amended and
restated in its entirety as follows:

            " (vi) amend, modify, terminate or waive any provision of Section 9
            as the same applies to any Agent, or any other provision

                                       10

<PAGE>

            hereof as the same applies to the rights or obligations of any
            Agent, without the consent of such Agent."

         B. Section 10.6(c) of the Credit Agreement is hereby amended deleting
all references to "$5,000,000" set forth therein and substituting "$1,000,000"
therefor.

SECTION 2.  CONDITIONS TO EFFECTIVENESS

         Section 1 of this Amendment shall become effective only upon the
satisfaction of all of the following conditions precedent (the date of
satisfaction of such conditions being referred to herein as the "FOURTH
AMENDMENT EFFECTIVE DATE"):

         A. EXECUTION. Credit Parties and Requisite Lenders shall have executed
this Amendment.

         B. AMENDMENT FEE. The Administrative Agent shall have received, for
distribution to all Lenders executing this Amendment, an amendment fee equal to
0.125% of such Lender's outstanding Loans and Commitments.

         C. OTHER FEES. The Agents shall have received all other fees and other
amounts due and payable on or prior to the Fourth Amendment Effective Date,
including, to the extent invoiced, reimbursement or other payment of all
out-of-pocket expenses required to be reimbursed or paid by the Company
hereunder or under any other Credit Document.

         D. NECESSARY CONSENTS. Each Credit Party shall have obtained all
material consents necessary or advisable in connection with the transactions
contemplated by this Amendment.

         E. OTHER DOCUMENTS. Administrative Agent and Lenders shall have
received such other documents and information regarding Credit Parties as
Administrative Agent may reasonably request.

SECTION 3.  BORROWER'S REPRESENTATIONS AND WARRANTIES

         In order to induce Lenders to enter into this Amendment and to amend
the Credit Agreement in the manner provided herein, the Company represents and
warrants to each Lender that the following statements are true, correct and
complete in all material respects:

         A. CORPORATE POWER AND AUTHORITY. Each Credit Party which is party
hereto has all requisite corporate power and authority to enter into this
Amendment and to carry out the transactions contemplated by, and perform its
obligations under, the Credit Agreement as amended by this Amendment (the
"AMENDED AGREEMENT") and the other Credit Documents.

         B. AUTHORIZATION OF AGREEMENTS. The execution and delivery of this
Amendment and the performance of the Amended Agreement and the other Credit
Documents have been duly authorized by all necessary corporate action on the
part of each Credit Party.

                                       11

<PAGE>

         C. NO CONFLICT. The execution and delivery by each Credit Party of this
Amendment and the performance by each Credit Party of the Amended Agreement and
the other Credit Documents do not and will not (i) violate (A) any provision of
any law, statute, rule or regulation, or of the certificate or articles of
incorporation or partnership agreement, other constitutive documents or by-laws
of Holdings, the Company or any Subsidiary, (B) any applicable order of any
court or any rule, regulation or order of any Governmental Authority or (C) any
provision of any indenture, certificate of designation for preferred stock,
agreement or other instrument to which Holdings, the Company or any Subsidiary
is a party or by which any of them or any of their property is or may be bound,
(ii) be in conflict with, result in a breach of or constitute (alone or with
notice or lapse of time or both) a default under any such indenture, certificate
of designation for preferred stock, agreement or other instrument, where any
such conflict, violation, breach or default referred to in clause (i) or (ii) of
this Section 3.C., individually or in the aggregate could reasonably be expected
to have a Material Adverse Effect, (iii) result in or require the creation or
imposition of any Lien upon any of the properties or assets of each Credit Party
(other than any Liens created under any of the Credit Documents in favor of
Administrative Agent on behalf of Lenders), or (iv) require any approval of
stockholders or partners or any approval or consent of any Person under any
contractual obligation of each Credit Party, except for such approvals or
consents which will be obtained on or before the Fourth Amendment Effective
Date.

         D. GOVERNMENTAL CONSENTS. No action, consent or approval of,
registration or filing with or any other action by any Governmental Authority is
or will be required in connection with the execution and delivery by each Credit
Party of this Amendment and the performance by Company and Holdings of the
Amended Agreement and the other Credit Documents, except for such actions,
consents and approvals the failure to obtain or make which could not reasonably
be expected to result in a Material Adverse Effect or which have been obtained
and are in full force and effect.

         E. BINDING OBLIGATION. This Amendment and the Amended Agreement have
been duly executed and delivered by each of the Credit Parties party thereto and
each constitutes a legal, valid and binding obligation of such Credit Party to
the extent a party thereto enforceable against such Credit Party in accordance
with its terms, except as enforceability may be limited by bankruptcy,
insolvency, moratorium, reorganization or other similar laws affecting
creditors' rights generally and except as enforceability may be limited by
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

         F. INCORPORATION OF REPRESENTATIONS AND WARRANTIES FROM CREDIT
AGREEMENT. The representations and warranties contained in Section 4 of the
Amended Agreement are and will be true, correct and complete in all material
respects on and as of the Fourth Amendment Effective Date to the same extent as
though made on and as of that date, except to the extent such representations
and warranties specifically relate to an earlier date, in which case they were
true, correct and complete in all material respects on and as of such earlier
date.

         G. ABSENCE OF DEFAULT. No event has occurred and is continuing or will
result from the consummation of the transactions contemplated by this Amendment
that would constitute an Event of Default or a Default.

                                       12

<PAGE>

SECTION 4.  ACKNOWLEDGMENT AND CONSENT

            Each of the Credit Parties set forth on the signature pages hereto
are collectively referred to herein as the "CREDIT SUPPORT PARTIES", and the
Credit Documents to which they are a party are collectively referred to herein
as the "CREDIT SUPPORT DOCUMENTS".

            Each of the Company and the Credit Support Parties hereby
acknowledges that it has reviewed the terms and provisions of the Credit
Agreement and this Amendment and consents to the amendment of the Credit
Agreement effected pursuant to this Amendment. Each of the Company and the
Credit Support Parties hereby confirms that each Credit Support Document to
which it is a party or otherwise bound and all Collateral encumbered thereby
will continue to guarantee or secure, as the case may be, to the fullest extent
possible in accordance with the Credit Support Documents the payment and
performance of all "Obligations" under each of the Credit Support Documents to
which is a party (in each case as such terms are defined in the applicable
Credit Support Document).

            Each of the Company and the Credit Support Parties acknowledges and
agrees that any of the Credit Support Documents to which it is a party or
otherwise bound shall continue in full force and effect and that all of its
obligations thereunder shall be valid and enforceable and shall not be impaired
or limited by the execution or effectiveness of this Amendment. Each of the
Company and the Credit Support Parties represents and warrants that all
representations and warranties contained in the Amended Agreement and the Credit
Support Documents to which it is a party or otherwise bound are true, correct
and complete in all material respects on and as of the Fourth Amendment
Effective Date to the same extent as though made on and as of that date, except
to the extent such representations and warranties specifically relate to an
earlier date, in which case they were true, correct and complete in all material
respects on and as of such earlier date.

            Each of the Company and the Credit Support Parties acknowledges and
agrees that (i) notwithstanding the conditions to effectiveness set forth in
this Amendment, each such Credit Support Party is not required by the terms of
the Credit Agreement or any other Credit Support Document to consent to the
amendments to the Credit Agreement effected pursuant to this Amendment and (ii)
nothing in the Credit Agreement, this Amendment or any other Credit Support
Document shall be deemed to require the consent of any of the Company and each
such Credit Support Party to any future amendments to the Credit Agreement.

SECTION 5.  MISCELLANEOUS

         A. REFERENCE TO AND EFFECT ON THE CREDIT AGREEMENT AND THE OTHER LOAN
DOCUMENTS.

                  (i) On and after the Fourth Amendment Effective Date, each
         reference in the Credit Agreement to "this Agreement", "hereunder",
         "hereof", "herein" or words of like import referring to the Credit
         Agreement, and each reference in the other Credit Documents to the
         "Credit Agreement", "thereunder", "thereof" or words of like import
         referring to the Credit Agreement shall mean and be a reference to the
         Credit Agreement as amended by this Amendment.

                                       13

<PAGE>

                  (ii) Except as specifically amended by this Amendment, the
         Credit Agreement and the other Credit Documents shall remain in full
         force and effect and are hereby ratified and confirmed.

                  (iii) The execution, delivery and performance of this
         Amendment shall not, except as expressly provided herein, constitute a
         waiver of any provision of, or operate as a waiver of any right, power
         or remedy of any Agent or Lender under, the Credit Agreement or any of
         the other Credit Documents.

         B. HEADINGS. Section and Subsection headings in this Amendment are
included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purpose or be given any substantive effect.

         C. APPLICABLE LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGA TIONS OF
THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING
WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

         D. COUNTERPARTS. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document.

         E. AMENDMENT AND RESTATEMENT. To facilitate reference to the provisions
of the Credit Agreement, as amended by this Amendment, each Lender executing
this Amendment hereby authorizes Administrative Agent, on its behalf, to enter
into an amendment and restatement of the Credit Agreement, as amended by this
Amendment; PROVIDED that any such amendment and restatement shall be distributed
to each Lender.

                  [Remainder of page intentionally left blank]

                                       14

<PAGE>

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

         BORROWER:                SIMMONS COMPANY

                                  By:    /s/ William S. Creekmuir
                                      ---------------------------------
                                  Name: William S. Creekmuir
                                  Title: Executive Vice President & CFO

         HOLDINGS:                SIMMONS HOLDINGS, INC.

                                  By:      /s/ William S. Creekmuir
                                     ----------------------------------
                                  Name: William S. Creekmuir
                                  Title: Executive Vice President & CFO

         CREDIT SUPPORT
         PARTIES:                 SIMMONS INTERNATIONAL HOLDINGS
                                  COMPANY, INC.
                                  (for purposes of Section 4 only) as a
                                  Credit Support Party

                                   By:      /s/ William S. Creekmuir
                                      ---------------------------------------
                                      Name: William S. Creekmuir
                                      Title: Executive Vice President & CFO

                                   THE SIMMONS MANUFACTURING CO., LLC
                                   (for purposes of Section 4 only) as a Credit
                                   Support Party

                                   By:      /s/ William S. Creekmuir
                                      -----------------------------------------
                                      Name: William S. Creekmuir
                                      Title: Executive Vice President & CFO

                                      S - 1

<PAGE>

                               WORLD OF SLEEP OUTLETS, LLC,
                               (for purposes of Section 4 only) as a Credit
                               Support Party

                               By:      /s/ William S. Creekmuir
                                  ---------------------------------------------
                               Name: William S. Creekmuir
                               Title: Executive Vice President & CFO

                               SIMMONS CONTRACT SALES, LLC,
                               (for purposes of Section 4 only) as a Credit
                               Support Party

                               By:      /s/ William S. Creekmuir
                                   --------------------------------------------
                                   Name: William S. Creekmuir
                                   Title: Executive Vice President & CFO

                               GALLERY CORP.,
                               (for purposes of Section 4 only) as a Credit
                               Support Party

                               By:      /s/ William S. Creekmuir
                                  ---------------------------------------------
                                  Name: William S. Creekmuir
                                  Title: Executive Vice President & CFO

                               DREAMWELL, LTD.,
                               (for purposes of Section 4 only) as a Credit
                               Support Party

                               By:      /s/ David R. Hancock
                                 ----------------------------------------------
                                  Name: David R. Hancock
                                  Title: Secretary

                               SIMMONS CAPITAL MANAGEMENT, LLC,
                               (for purposes of Section 4 only) as a Credit
                               Support Party

                               By:      /s/ David R. Hancock
                                  ---------------------------------------------
                                  Name: David R. Hancock
                                  Title: Secretary

                                      S - 2

<PAGE>

LENDERS AND AGENTS             GOLDMAN SACHS CREDIT PARTNERS L.P.,

                               By: /s/ Elizabeth Fischer
                                  ---------------------------------------------
                                  Authorized Signatory

                                      S - 3

<PAGE>
                                  UBS AG, STAMFORD BRANCH

                                  By:      /s/ Wilfred V. Saint
                                     -------------------------------------------
                                     Name: Wilfred V. Saint
                                     Title: Associate Director
                                            Banking Products Services, US

                                  By:      /s/ Anthony N. Joseph
                                    -------------------------------------------
                                    Name:  Anthony N. Joseph
                                    Title: Associate Director
                                           Banking Products Services, US

                                      S-4
<PAGE>
                                        OPPENHEIMER SENIOR FLOATING RATE FUND

                                        By: /s/ Bill Campbell
                                            ------------------------------------
                                            Name: Bill Campbell
                                            Title: Manager

<PAGE>

                                      U.S. BANK NATIONAL ASSOCIATION

                                      By: /s/ Christopher W. Rupp
                                      ------------------------------------------
                                      Name: Christopher W. Rupp
                                      Title: Assistant Vice President

                                       S-6
<PAGE>

                                       SUNTRUST BANK

                                       By: /s/ Katherine A. Boozer
                                           --------------------------
                                           Name: Katherine A. Boozer
                                           Title: Vice President

                                       S-7

<PAGE>

                                        NEW ALLIANCEGLOBAL CDO, LIMITED
                                        By: Alliance Capital Management L.P., as
                                            Sub-advisor
                                        By: Alliance Capital Management
                                            Corporation, as General Partner

                                        By: /s/ Teresa McCarthy
                                            --------------------------
                                            Name: Teresa McCarthy
                                            Title: Vice President

                                       S-8

<PAGE>

                                        RIVIERA FUNDING LLC

                                        By: /s/ Diana Mushill
                                            --------------------------
                                            Name: Diana Mushill
                                            Title: Asst. Vice President

                                       S-9
<PAGE>

                                        THE BANK OF NEW YORK

                                        By: /s/ Christine T. Rio
                                            --------------------------
                                            Name: Christine T. Rio
                                            Title: Vice President

                                       S-10

<PAGE>

                                        INDOSUEZ CAPITAL FUNDING IV, L.P.,
                                        By: RBC Leveraged Capital as Portfolio
                                            Advisor

                                        By: /s/ Melissa Marano
                                            --------------------------
                                            Name: Melissa Marano
                                            Title: Director

                                       S-11

<PAGE>

                                        TORONTO DOMINION (NEW YORK), INC.

                                        By: /s/ Gwen Zirkle
                                            --------------------------
                                            Name: Gwen Zirkle
                                            Title: Vice President

                                       S-12

<PAGE>

                                        PB CAPITAL

                                        By: /s/ Chris Ruzzi
                                        --------------------------
                                        Name: Chris Ruzzi
                                        Title: Vice President

                                        By: /s/ Tyler J. McCarthy
                                        --------------------------
                                        Name: Tyler J. McCarthy
                                        Title: Assistant Vice President

                                       S-13
<PAGE>

                                        ELT LTD.

                                        By: /s/ Ann E. Morris
                                            --------------------------
                                            Name: Ann E. Morris
                                            Title: Authorized Agent

                                       S-14
<PAGE>

                                        HSBC BANK USA

                                        By: /s/ Carol A. Kraus
                                            --------------------------
                                            Name: Carol A. Kraus
                                            Title: Vice President

                                        S-15
<PAGE>

                                        INDOSUEZ CAPITAL FUNDING IIA, LIMITED
                                        By: Indosuez Capital as Portfolio
                                            Advisor

                                        By: /s/ Jack C. Henry
                                            --------------------------
                                            Name: Jack C. Henry
                                            Title: Principal

                                        INDOSUEZ CAPITAL FUNDING VI, LIMITED
                                        By: Indosuez Capital as Collateral
                                            Manager

                                        By: /s/ Jack C. Henry
                                            --------------------------
                                            Name: Jack C. Henry
                                            Title: Principal

                                        S-16

<PAGE>

                                        KZH CYPRESSTREE-1 LLC

                                        By: /s/ Susan Lee
                                            --------------------------
                                            Name: Susan Lee
                                            Title: Authorized Agent

                                        S-17
<PAGE>

                                        TEXTRON FINANCIAL CORPORATION

                                        By: /s/ Jane M. Lavoie
                                            --------------------------
                                            Name: Jane M. Lavoie
                                            Title: Vice President - Operations

                                        S-18
<PAGE>

                                        KZH STERLING LLC

                                        By: /s/ Susan Lee
                                            -----------------------
                                            Name: Susan Lee
                                            Title: Authorized Agent

                                        S-19

<PAGE>

                                        BLACK DIAMOND CLO 2000-1 LTD.

                                        By: /s/ David Dyer
                                            --------------------------
                                            Name: David Dyer
                                            Title: Director

                                        S-20

<PAGE>

                                        HELLER FINANCIAL, INC.

                                        By: /s/ Robert M. Kadlick
                                            --------------------------
                                            Name: Robert M. Kadlick
                                            Title: Duly Authorized Signatory

                                        S-21
<PAGE>

                                        CENTURION CDO II, LTD.

                                        By: American Express Asset Management
                                            Group Inc. as Collateral Manager

                                        By: /s/ Steven B. Staver
                                            --------------------------
                                            Name: Steven B. Staver
                                            Title: Managing Director

                                        S-22

<PAGE>

                                        NOMURA BOND & LOAN FUND

                                        By: UFJ Trust Company of New York as
                                            Trustee
                                        By: Nomura Corporate Research and Asset
                                            Management Inc. Attorney in Fact

                                        By: /s/ Elizabeth Maclean
                                            --------------------------
                                            Name: Elizabeth Maclean
                                            Title: Vice President

                                        S-23

<PAGE>

                                        SCOTIABANC INC.

                                        By: /s/ Jean-Paul Purdy
                                            --------------------------
                                            Name: Jean-Paul Purdy
                                            Title: Director

                                        S-24
<PAGE>

                                        CLYDESDALE CLO 2001-1, LTD.

                                        By: Nomura Corporate Research and Asset
                                            Management Inc. as Collateral
                                            Manager

                                        By: /s/ Elizabeth Maclean
                                            --------------------------
                                            Name: Elizabeth Maclean
                                            Title: Vice President

                                        S-25
<PAGE>

                                        SENIOR DEBT PORTFOLIO
                                        By: Boston Management and Research as
                                            Investment Advisor

                                        By: /s/ Scott H. Pace
                                            --------------------------
                                            Name: Scott H. Pace
                                            Title: Vice President

                                        S-26

<PAGE>

                                        EATON VANCE SENIOR INCOME TRUST

                                        By: Eaton Vance Management as Investment
                                            Advisor

                                        By: /s/ Scott H. Page
                                            --------------------------
                                            Name: Scott H. Page
                                            Title: Vice President

                                        S-27

<PAGE>

                                        EATON VANCE INSTITUTIONAL SENIOR LOAN
                                        FUND

                                        By: Eaton Vance Management as Investment
                                            Advisor

                                        By: /s/ Scott H. Page
                                            --------------------------
                                            Name: Scott H. Page
                                            Title: Vice President

                                        S-28

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