Document:

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                                                                    Exhibit 10.1

                                                                 EXECUTION COPY

                       SIXTH AMENDMENT TO CREDIT AGREEMENT

         THIS SIXTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), dated as
of September 23, 2002 (the "Sixth Amendment Effective Date"), is by and among
CORRPRO COMPANIES, INC., an Ohio corporation (the "Company"), CSI COATING
SYSTEMS INC. (the "Canadian Borrower" and, together with the Company, the
"Borrowers"), the lenders set forth on the signature pages hereof (collectively,
the "Lenders") and BANK ONE, NA, with its main office in Chicago, Illinois, and
successor by merger to Bank One, Michigan, as agent for the Lenders (in such
capacity, the "Agent").

                                    RECITALS

         A. The Borrowers, the Agent and the Lenders are parties to an Amended
and Restated Credit Agreement dated as of June 9, 2000 (as now and hereafter
amended, the "Credit Agreement"), pursuant to which the Lenders agreed, subject
to the terms and conditions thereof, to extend credit to the Borrowers.

         B. The Credit Agreement was amended by a First Amendment to Credit
Agreement dated as of October 19, 2000 (the "First Amendment") among the
Borrowers, the Lenders and the Agent, pursuant to which the parties agreed to
modify certain terms and conditions of the extension of credit to the Borrowers.

         C. Prior to May 29, 2001, certain Defaults occurred under the Credit
Agreement due to breaches of Sections 6.19.1 and 6.19.2 of the Credit Agreement
as of the fiscal quarter ending March 31, 2001 (the "May 2001 Defaults"). Based
upon the request of the Borrowers and the Guarantors, the Agent and the Lenders
temporarily waived the May 2001 Defaults subject to the terms and conditions set
forth in a certain letter dated May 29, 2001 (the "Waiver Letter").

         D. Prior to the expiration of the temporary waiver set forth in the
Waiver Letter, the Borrowers requested, notwithstanding the occurrence of the
May 2001 Defaults, that the Agent and the Lenders (i) continue to advance
Revolving Credit Loans to the Borrowers under certain modified terms and
conditions of lending, (ii) extend the waiver of the May 2001 Defaults and (iii)
forbear from exercising remedies available under the Loan Documents or at law or
in equity, all in order to (a) permit the Borrowers to develop and implement a
business plan and financial strategy to improve their business operations and
financial condition and (b) permit the Borrowers to develop and implement a
potential financial restructuring plan and strategy that would address, inter
alia, repayment of the indebtedness owed to the Lenders. Pursuant to such
request, the Credit Agreement was further amended by a Second Amendment to
Credit Agreement dated as of June 29, 2001 (the "Second Amendment") among the
Borrowers, the Lenders and the Agent. The Second Amendment, among other things,
granted to the Borrowers a "Restructuring Period" during which the Borrowers
would be permitted to develop and implement their business improvement and
financial restructuring plan.

         E. Prior to August 10, 2001, the Borrowers requested that the Agent and
the Lenders extend the Facility Termination Date and agree to certain other
modifications to the provisions of the Credit Agreement. Pursuant to such
request, the Credit Agreement was further amended by a Third Amendment to Credit
Agreement dated as of August 10, 2001 (the "Third Amendment") among the
Borrowers, the Lenders and the Agent.

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         F. Prior to November 12, 2001, the Borrowers requested that the Agent
and the Lenders further extend the Facility Termination Date, extend the
expiration date of the Restructuring Period and agree to certain other
modifications to the provisions of the Credit Agreement. Pursuant to such
request, the Credit Agreement was further amended by a Fourth Amendment to
Credit Agreement dated as of November 12, 2001 (the "Fourth Amendment") among
the Borrowers, the Lenders and the Agent.

         G. Prior to February 11, 2002, the Borrowers requested that the Agent
and the Lenders further extend the Facility Termination Date, extend the
expiration date of the Restructuring Period and agree to certain other
modifications to the provisions of the Credit Agreement. Pursuant to such
request, the Credit Agreement was further amended by a Fifth Amendment to Credit
Agreement dated as of February 11, 2002 (the "Fifth Amendment") among the
Borrowers, the Lenders and the Agent.

         H. The Credit Agreement (as modified by the First Amendment, the Second
Amendment, the Third Amendment, the Fourth Amendment and the Fifth Amendment),
all promissory notes executed by either Borrower in favor of the Agent and/or
the Lenders, and any and all of the Collateral Documents executed by any Loan
Party (including without limitation all Security Agreements, Mortgages,
Guaranties, pledges of stock and other instruments, documents or agreements of
any kind evidencing or securing the indebtedness of either Borrower in favor of
the Lenders) are sometimes referred to collectively as the "Loan Documents."

         I. Beginning in March, 2002 and continuing through the date hereof, the
Company informed the Lenders and the Agent that certain additional Events of
Default had occurred under the Credit Agreement as follows: (i) violation of the
financial covenants contained in Section 6.19 of the Credit Agreement and
Section 1.2.g of the Fifth Amendment, as of December 31, 2001 and continuing
through the date hereof, (ii) violation of the provisions contained in Sections
7.5, 7.6 and 7.7 of the Credit Agreement, as of March 22, 2002 and continuing
through the date hereof, (iii) violation of the provisions contained in Section
1.4.c and 1.4.e of the Fifth Amendment, as of March 22, 2002 and continuing
through the date hereof, (iv) violation of the financial reporting covenants
contained in Section 6.1 of the Credit Agreement, as of December 31, 2001 and
continuing through the date hereof, (v) violations under Section 1.2 of the
Fifth Amendment as a result of accounting irregularities at the Company's
Australian subsidiary as of March 31, 2002 and for any period for which the
Company's restated financial statements (which restatement was due to such
accounting irregularities) would have caused the Company to be in violation of
financial covenants then in effect, and (vi) violation of Section 6.7 of the
Credit Agreement as a result of securities law violations in connection with the
accounting irregularities at the Company's Australian subsidiary and the late
filing of the Company's Form 10-K for the year ended March 31, 2002
(collectively the "March 2002 Defaults"). The May 2001 Defaults and the March
2002 Defaults are referred to collectively as the "Existing Defaults".

         J. The "Improvement Period" granted to Borrowers under the Fifth
Amendment expired on May 31, 2002. Notwithstanding such expiration and
notwithstanding the occurrence and continuation of the Existing Defaults, the
Borrowers have requested that the Agent and the Lenders further extend the
Facility Termination Date and further extend the expiration date of the
Improvement Period. Additionally, the Borrowers have requested that the Agent
and the Lenders continue to permit the Borrowers to develop and implement their
business improvement and financial restructuring plan under the terms and
conditions set forth in this Amendment.

         K. Based upon the foregoing recitals, and without waiving any existing
or future rights or remedies which the Agent and/or the Lenders may have against
the Borrowers or any Guarantor, the Agent and the Lenders are willing to amend
the terms of the Credit Agreement (including the Second Amendment, the Third
Amendment , the Fourth Amendment and the Fifth Amendment) under the terms and
conditions expressly set forth herein.

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                                      TERMS

         In consideration of the premises and of the mutual agreements herein
contained, the parties agree as follows:

                                   ARTICLE 1.
                        PROVISIONS FOR IMPROVEMENT PERIOD

     1.1 Affirmation of Recitals. The Borrowers and the Guarantors hereby
acknowledge and affirm the accuracy of the foregoing recitals.

     1.2 Improvement Period Conditions. Section 1.3 of the Second Amendment set
forth certain "restructuring conditions" governing the Borrowers' implementation
of their business improvement and financial restructuring plan. Such
"restructuring conditions" were amended and restated in Section 1.2 of the Third
Amendment, Section 1.2 of the Fourth Amendment and Section 1.2 of the Fifth
Amendment, and are hereby further amended and restated in their entirety as set
forth below in this Section 1.2. Nothing contained herein, however, shall be
deemed to modify or retract the terms and conditions that were applicable under
the Second Amendment, the Third Amendment, the Fourth Amendment and/or the Fifth
Amendment during the period from and including the Second Amendment Effective
Date through and including the date immediately preceding the Sixth Amendment
Effective Date. All actions performed by or on behalf of the Borrowers during
such period in furtherance of their obligations under the Second Amendment, the
Third Amendment, the Fourth Amendment and/or the Fifth Amendment are hereby
confirmed and ratified, and the Agent and the Lenders shall be entitled to
retain the full benefit of such performance. There shall be no disgorgement,
refund or rescission with respect to any payment made by or on behalf of the
Borrowers and received by the Agent or the Lenders pursuant to the terms of the
Second Amendment, the Third Amendment, the Fourth Amendment and/or the Fifth
Amendment. Except to the extent expressly modified by the terms set forth below,
each of the terms and conditions set forth in the Second Amendment, the Third
Amendment, the Fourth Amendment and/or the Fifth Amendment is hereby confirmed
and ratified and shall remain in full force and effect as provided therein. From
and after the Sixth Amendment Effective Date, subject to strict compliance with
the terms and conditions set forth herein, the Lenders agree to forbear from
enforcing their rights and remedies based on the Existing Defaults while the
Borrowers and their consultants continue to develop and implement their plan for
improvement of the Borrowers' business and financial condition, provided that
(i) the Lenders' waiver of the Existing Defaults shall be solely in accordance
with the terms and conditions set forth in the Second Amendment, the Third
Amendment, the Fourth Amendment and the Fifth Amendment (as modified herein) and
(ii) such agreement to forbear shall not create a waiver of the right of the
Agent or the Lenders, upon the occurrence of a default hereunder or a Default
(other than the Existing Defaults) under the Loan Documents, to enforce
available rights and remedies at any time, in their sole discretion, in
accordance with the Credit Agreement (as previously modified and as modified
herein) and the other Loan Documents. Absent an earlier default hereunder or
Default (other than the Existing Defaults) under the Loan Documents, the period
during which the Lenders shall forbear is from the Second Amendment Effective
Date through October 31, 2002 (the "Improvement Period"). The Lenders'
forbearance shall be governed by and subject to the following terms and
conditions:

          a. The Borrowers shall keep the Agent, the Lenders and their
     consultants apprised of the Borrowers' business and financial operations
     and of any material discussions and negotiations (other than discussions or
     negotiations in the ordinary course of the

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     Borrowers' business) pertaining to lessors, vendors, suppliers, customers,
     other creditors, joint venture partners or potential purchasers of any
     business segments or significant assets of any Borrowers. Reports on such
     matters shall be provided periodically and not less frequently than
     monthly.

          b. Notwithstanding any prior practice, the Borrowers shall strictly
     comply with the financial reporting requirements under the Loan Documents,
     as modified herein. In addition to the reporting requirements set forth in
     Section 6.1 of the Credit Agreement (as modified herein), (i) not later
     than Wednesday of each week during the Improvement Period, the Borrowers
     and their financial advisors will deliver to the Agent and the Lenders, in
     form and detail satisfactory to the Agent, weekly updates to the detailed
     13-week rolling cash flow forecast as required under Section 4.4 of this
     Amendment; (ii) not later than the twentieth (20th) day of each month
     during the Improvement Period, the Borrowers and their financial advisors
     will deliver to the Agent and the Lenders, in form and detail satisfactory
     to the Agent, (x) a summary of agings of accounts payable and accounts
     receivable for the Borrowers as of the end of the prior month, (y) a
     duly-executed Borrowing Base Certificate as of the last Business Day of the
     prior month, together with supporting information as required by the Credit
     Agreement, and (z) a duly-executed Compliance Certificate with respect to
     the cash flow restrictions set forth in subparagraph f below; (iii) the
     Company shall, immediately upon receipt thereof, deliver to the Agent
     copies of any correspondence, letters of intent, agreements or similar
     documents pertaining in any manner to any proposed sale or other
     disposition of any assets of the Company or its Subsidiaries other than in
     the ordinary course of business; and (iv) the Company shall provide to the
     Agent, within five (5) business days following any request by the Agent, a
     current listing of correct names and addresses of account debtors (together
     with periodic updates to such listing upon request by the Agent). If
     requested by the Agent, the Borrowers promptly shall provide detailed
     backup for the monthly summary of agings of accounts payable and accounts
     receivable.

          c. The Borrowers shall pay when due all amounts owed to the Agent and
     the Lenders under the Loan Documents.

          d. The aggregate outstanding amount of the Revolving Credit Loans,
     together with the face amount of any Facility LCs, shall not exceed the
     maximum amount described in Article 2 of the Second Amendment (as modified
     by Article 2 of this Amendment). From and after the date of execution of
     this Amendment, the Borrowers shall, absent emergency circumstances
     demonstrated to the satisfaction of the Agent, request Revolving Credit
     Loans not more frequently than twice per week. Each such request shall be
     based upon a Borrowing Base Certificate submitted pursuant to subparagraph
     b above, updated to reflect finally-collected funds applied against the
     Revolving Credit Loans pursuant to the Borrowers' dominion of funds
     arrangement with the Agent.

          e. All representations and warranties made by the Borrowers under the
     Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth
     Amendment and under this Amendment, shall be true and correct.

          f. (i) There shall be no change having a Material Adverse Effect on
     the financial performance or condition of the Borrowers as compared with
     the projections submitted to and approved by the Agent and the Lenders in
     the Accepted Forecast pursuant to Section 4.4 of this Amendment.

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              (ii) For each "Measuring Period" (defined below) during the
     Improvement Period, the actual cumulative "Net Cash Flow" (defined below)
     of the Company and its domestic Subsidiaries on a consolidated basis during
     such Measuring Period shall equal or exceed the projected cumulative Net
     Cash Flow for such Measuring Period as set forth in the Accepted Forecast,
     within a negative variance of the greater of $500,000 or 10% of cumulative
     budgeted Net Cash Flow for each Measuring Period. The term "Net Cash Flow"
     shall mean the excess (if any) of the consolidated aggregate cash receipts
     of the Company and its domestic Subsidiaries during the relevant period
     (excluding (a) any advances of Loans under the Credit Agreement and (b) the
     amount of Net Cash Proceeds generated by any transaction and distributed to
     the Lenders as required by the Credit Agreement) compared to the
     consolidated aggregate cash disbursements of the Company and its domestic
     Subsidiaries during such period for operating expenses, taxes and debt
     service (but excluding principal repayments and interest payments to the
     Lenders and to the Noteholders, and excluding professional fees incurred in
     connection with the investigation of the Company's Australian subsidiary),
     all as shown on the reports required pursuant to Section 4.4 of this
     Amendment and prepared in a manner consistent with the presentation set
     forth in the Accepted Forecast. The cumulative Net Cash Flow of the Company
     and its domestic Subsidiaries shall be measured as of the end of each
     calendar month, for the cumulative period commencing April 1, 2002 and
     ending on the last day of each successive month (each a "Measuring Period")
     (i.e., the first Measuring Period shall be a one-month period commencing
     April 1, 2002 and ending April 30, 2002, the second Measuring Period shall
     be a two-month period commencing April 1, 2002 and ending May 31, 2002,
     etc.).

             (iii) The Borrowers shall not, absent the prior written consent of
     the Required Lenders, (a) disburse any funds for purposes other than those
     set forth in the Accepted Forecast or (b) disburse any funds in an amount
     that would cause a violation of the net cash flow restrictions set forth
     above, and shall not in any event disburse any funds in a manner
     inconsistent with any other restrictions set forth in this Amendment or the
     Loan Documents.

          g. The Company will not permit the Consolidated EBITDA of the Company
     and its Subsidiaries to be less than (i) $6,687,000 for the four
     consecutive fiscal quarters ending June 30, 2001, (ii) $8,628,000 for the
     four consecutive fiscal quarters ending September 30, 2001, (iii)
     $8,860,000 for the four consecutive fiscal quarters ending December 31,
     2001, (iv) $12,665,000 for the four consecutive fiscal quarters ending
     March 31, 2002, (v) $1,901,000 for the three consecutive months ending June
     30, 2002, (vi) $5,279,000 for the six consecutive months ending September
     30, 2002, (vii) $9,594,000 for the nine consecutive months ending December
     31, 2002, (viii) $11,009,000 for the twelve consecutive months ending March
     31, 2003, or (ix) $2,533,000 for the three consecutive months ending June
     30, 2003. The parties acknowledge that Consolidated EBITDA is calculated
     without regard to extraordinary gains or losses other than in the ordinary
     course of business. For the avoidance of doubt, the parties further
     acknowledge that, for purposes of this subparagraph, the term "Consolidated
     EBITDA" shall be calculated exclusive of (w) commissions related to asset
     dispositions, (x) gains or losses recognized upon asset dispositions, (y)
     any increase (or decrease) in EBITDA resulting from the completion of a
     particular asset disposition in a month that is after (or before) the
     projected sale date, and (z) restructuring charges and professional fees
     incurred in connection with the investigation of the Company's Australian
     subsidiary.

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          h. No action or proceeding shall be commenced against any Borrower
     that would, if adversely determined, cause a Material Adverse Effect or
     prevent, impair or delay the completion of the Borrowers' business
     improvement plan. With respect to those actions or proceedings currently
     pending (as listed on Schedule 1.2h hereof), there shall be no event that
     would cause a Material Adverse Effect or prevent, impair or delay the
     completion of the Borrowers' business improvement plan.

          i. Absent prior approval on behalf of the Agent and the Lenders, no
     Borrower shall (i) file with any bankruptcy court or be the subject of any
     petition under title 11 of the United States Code (the "Bankruptcy Code"),
     (ii) be the subject of any order for relief issued under the Bankruptcy
     Code, (iii) file or be the subject of any petition seeking any liquidation,
     reorganization, adjustment, protection, arrangement, composition,
     dissolution or similar relief under any present or future federal or state
     act or law relating to bankruptcy, insolvency, reorganization or other
     relief for debtors, (iv) have sought or consented to or acquiesced in the
     appointment of any receiver, trustee, conservator, liquidator, custodian or
     other similar official, or (v) be the subject of any order, judgment or
     decree entered by any court of competent jurisdiction approving a petition
     filed against such party for any liquidation, reorganization, adjustment,
     protection, arrangement, composition, dissolution or similar relief under
     any present or future federal or state act or law relating to bankruptcy,
     insolvency, reorganization or other relief for debtors.

          j. The Agent, the Lenders or their representatives or consultants
     shall be permitted to conduct field examinations of the Company and its
     Subsidiaries and audits of any collateral securing the obligations of the
     Borrowers to the Lenders. The Borrowers shall compensate the Agent or the
     Lenders for such audits in accordance with the Agent's or each Lender's
     schedule of fees, as applicable, and as such schedules may be amended from
     time to time. The foregoing permission to conduct audits shall not restrict
     or impair the right of the Agent or the Lenders to inspect the collateral
     and any records pertaining thereto at such times and at such intervals as
     the Agent or the Required Lenders may require. Further, the Borrowers
     acknowledge and agree that the Agent, on behalf of itself and the Lenders,
     reserves the right to engage the services of one or more appraisers to
     evaluate the properties of the Company and its Subsidiaries. The Borrowers
     acknowledge their responsibility to reimburse the Agent for the fees and
     disbursements incurred by such parties in connection with such engagements.

          k. Neither the Company nor any of its Subsidiaries shall take any
     action or fail to take any action within its reasonable control that would
     cause a material adverse change in the ability of the Company and its
     Subsidiaries to obtain supplies or other assets to continue their
     operations. Upon the occurrence of any event not within the reasonable
     control of the Company or its Subsidiaries that would cause a material
     adverse change in the ability of the Company and its Subsidiaries to obtain
     supplies or other assets to continue their operations, the Company shall
     immediately initiate and diligently complete such actions as may be
     necessary to avoid any impairment or delay in the operations of the Company
     and its Subsidiaries.

          l. Notwithstanding anything in the Credit Agreement to the contrary
     (including without limitation the provisions of Section 6.11 of the Credit
     Agreement), during the Improvement Period, absent the prior written consent
     of the Required Lenders, the Company shall not, and shall not permit or
     cause any of its Subsidiaries to, create, incur, assume or suffer to exist
     any Indebtedness other than Indebtedness as permitted under subsections
     6.11(i), (ii), (iii), (iv), (v), (vii) and (viii) of the Credit Agreement
     (with respect

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     to clause (vii), only to the extent that such Indebtedness is in existence
     immediately prior to the Sixth Amendment Effective date as described in
     Schedule 1.2l, provided that no increase in the amount thereof shall be
     permitted).

          m. During the Improvement Period, absent the prior written consent of
     the Required Lenders, the Company shall not, and shall not permit or cause
     any of its Subsidiaries to, create, incur or suffer to exist any Lien other
     than Liens as permitted under Section 6.15 of the Credit Agreement.

          n. Notwithstanding anything in the Credit Agreement to the contrary
     (including without limitation the provisions of Section 6.13 of the Credit
     Agreement), during the Improvement Period, neither the Company nor any of
     its Subsidiaries shall agree to or consummate the sale, assignment, lease,
     conveyance, transfer or other disposition of any of its assets, except for
     (i) sales of inventory in the ordinary course of business, (ii) the
     disposition in the ordinary course of business of assets no longer required
     for business operations, provided that such assets shall not have a value
     exceeding $30,000 per item and $300,000 in the aggregate on a cumulative
     basis during the Improvement Period, or (iii) the disposition of other
     assets under terms approved by the Required Lenders as evidenced by the
     prior written consent of the Agent (provided that such consent shall
     require the approval of all of the Lenders in the event of any proposed
     disposition of all or substantially all of the Collateral). With respect to
     clause (iii) of the preceding sentence, the Company has designated certain
     non-core assets or business units that it intends to list for sale or
     otherwise dispose of as soon as practicable. Schedule 1.2n attached hereto
     identifies each such designated non-core asset or business unit (each a
     "Targeted Asset Disposition") and the Company's estimate of the net cash
     proceeds to be generated from the sale or other disposition of each such
     Targeted Asset Disposition (the "Targeted Asset Cash Proceeds"). A copy of
     the listing agreement (if applicable) with respect to each of such assets
     shall be delivered to the Agent and the Lenders as soon as available. The
     Company shall, immediately upon receipt thereof, provide to the Agent and
     the Lenders copies of any written agreements or letters of intent
     pertaining to the potential sale of any of such assets. With respect to any
     transaction that is approved by the Required Lenders under the provisions
     of this Amendment and otherwise is permissible under the Credit Agreement
     (as modified herein), such transaction shall be consummated within the time
     parameters and other terms and conditions as disclosed in the applicable
     written agreement or letter of intent. Based upon the Company's request,
     100% of the net cash proceeds (after deducting customary and reasonably
     commissions and transaction expenses and after deducting any taxes
     attributable to the transaction) generated by each such transaction shall
     upon closing immediately be paid to the Lenders and the Noteholders (in the
     proportion of fifty-six percent (56%) to the Lenders and forty-four percent
     (44%) to the Noteholders) . The portion of such net cash proceeds remitted
     to the Lenders shall be applied as a repayment of outstanding principal
     balance of the Revolving Credit Loans (and the amount of such repayment
     shall constitute a permanent reduction of the amount of the Aggregate
     Commitments).

          o. Notwithstanding anything in the Credit Agreement to the contrary
     (including without limitation the provisions of Sections 6.12 and 6.14 of
     the Credit Agreement), during the Improvement Period, absent the consent of
     the Required Lenders, neither the Company nor any of its Subsidiaries shall
     agree to or consummate, or make or suffer to exist, any Investment or
     Acquisition, or extend credit to any other Person, or extend any credit to
     any other Person, or enter into any merger or consolidation, or enter into
     any similar business arrangement or combination, except for transactions
     permitted under

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     subsections 6.14 (i) and (ii) of the Credit Agreement (with respect to
     clause (ii), only to the extent in existence immediately prior to the Sixth
     Amendment Effective Date).

          p. Notwithstanding anything in the Credit Agreement to the contrary,
     during the Improvement Period neither the Company nor any of its
     Subsidiaries shall advance any loans or credit to any officer, director,
     stockholder or other Affiliate of the Company or any of its Subsidiaries,
     or otherwise enter into any similar transaction (provided that the Company
     may continue to implement intercompany transactions with its Wholly-Owned
     Subsidiaries -- other than its Australian Subsidiary -- consistent with
     past practice), nor shall the Company or any of its Subsidiaries forgive or
     defer any payment of principal or interest with respect to any existing
     loan or advance to any such officer, director, stockholder or other
     Affiliate.

          q. Notwithstanding anything in the Credit Agreement to the contrary
     (including without limitation the provisions of Sections 6.10 of the Credit
     Agreement), during the Improvement Period, absent the prior written consent
     of the Required Lenders, the Company shall not, and shall not permit or
     cause any of its Subsidiaries to declare or pay any dividends or make any
     distributions on its Capital Stock or redeem, repurchase or otherwise
     acquire or retire any of its Capital Stock, provided that any Subsidiary
     may continue to declare and pay dividends or make distributions to the
     Company or to a Wholly-Owned Subsidiary consistent with past practice.

          r. During the Improvement Period, neither the Company nor any of its
     Subsidiaries shall pay any discretionary bonus or similar compensation
     award to any of their respective officers or employees except pursuant to a
     comprehensive plan approved by the Required Lenders. The preceding sentence
     shall not limit the right of the Company or its Subsidiaries to pay any
     bonus (i) required under any written employment agreement, incentive plan
     or similar "guaranteed" bonus plan in existence immediately prior to the
     Second Amendment Effective Date, (ii) under its annual incentive plan for
     the fiscal year ending March 31, 2003 (provided that such plan is
     satisfactory to the Agent) or (iii) negotiated as part of a recruitment
     "signing bonus" consistent with past practice. Upon request, the Company
     shall deliver to the Lenders and the Agent copies of any applicable
     employment agreements, incentive plans or similar "guaranteed" bonus plans.

          s. The Company shall pay to the Agent, for the benefit of the Lenders,
     an amendment fee in the amount of $350,000.00. Not less than one-half of
     such fee shall be paid not later than September 23, 2002, and the remainder
     shall be paid not later than October 21, 2002.

          t. Commencing on the Second Amendment Effective Date and thereafter,
     there shall be no principal payments made to the Noteholders in respect of
     the Noteholder Obligations unless, simultaneously with the making of any
     such payment, the Borrowers pay to the Lenders the "Reduction Amount" (as
     such term is defined in Article 2 of the Second Amendment). Upon payment to
     the Lenders of the Reduction Amount, the Borrowing Base and the Aggregate
     Commitments shall be permanently reduced by such amount, which may not be
     reborrowed. The parties acknowledge that, as of the Sixth Amendment
     Effective Date, the "Reduction Ratio" (as such term is defined in the
     Second Amendment) is 1.272.

          u. Notwithstanding anything in the Credit Agreement to the contrary,
     the Borrowers shall not, and shall not permit any Subsidiary to, make any
     Capital Expenditures

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     that exceed in the aggregate for the Borrowers and their Subsidiaries (a)
     $1,750,000 during the fiscal year ending March 31, 2002, (b) $500,000
     during the three-month period ending June 30, 2002, (c) $1,000,000 during
     the six-month period ending September 30, 2002, (d) $1,300,000 during the
     nine-month period ending December 31, 2002, (e) $1,500,000 during the
     twelve-month period ending March 31, 2003 or (f) $500,000 during the
     three-month period ending June 30, 2003.

          v. Not later than the date of execution of this Amendment, the Company
     shall employ or engage, and during the Improvement Period (as such
     Improvement Period may be extended from time to time) shall continue to
     employ or engage, a full-time chief restructuring officer acceptable to the
     Agent and the Required Lenders. The chief restructuring officer will have
     authority that is independent of the authority of other officers of the
     Company and will report directly to the Company's board of directors. The
     scope of authority of the chief restructuring officer shall be acceptable
     to the Agent and the Required Lenders. The Agent and the Lenders will have
     unrestricted access to communicate directly with the chief restructuring
     officer.

          w. The Company has advised the Agent and the Lenders that the Company
     intends to consult with one or more investment banking firms to explore
     various strategic alternatives, including refinancing and/or the sale of
     certain assets or divisions. Subject to the approval requirements set forth
     below, the Company will retain an acceptable investment banking firm not
     later than September 30, 2002. The Company shall keep representatives of
     the Agent and the Lenders apprised of all consultations with investment
     banking firms. The Company shall not engage any investment banking firm
     unless the identity of such firm and the scope of the engagement are
     acceptable to the Agent and the Required Lenders. The Company agrees to
     promptly provide to the Agent all reports and other information prepared
     for or on behalf of the Company by any investment banking firm or similar
     consultant. The Company acknowledges and agrees that the Agent, its
     consultants and counsel shall have direct access to any investment banking
     firm or similar consultant engaged on behalf of the Company, and each of
     such parties is authorized to discuss information related to the Company
     with the Agent, the Lenders or their consultants or counsel. All parties
     acknowledge that Brown, Gibbons & Lang has been retained by the Company
     with respect to two (2) specific asset dispositions, and the Agent and the
     Lenders have approved such retention (which shall not be deemed approval
     for the Company to retain such firm for any other engagement).

          x. The Company shall continue to implement the cost savings measures
     identified in the report submitted to the Agent and the Lenders on May 20,
     2002.

          y. Not later than September 30, 2002, the Company shall provide to the
     Agent and its advisors an updated written report on the current status of
     all proceedings and investigations related to the Company's Australian
     Subsidiary, including without limitation any interim conclusions, pending
     or completed actions in response thereto, and the status of the
     administration of the business and assets of such Subsidiary. Until
     completion of such administration, further updated status reports on such
     matters shall be provided to the Agent and its advisors not less frequently
     than weekly.

          z. Not later than September 30, 2002, the Company shall provide to the
     Agent and its advisors a detailed restructuring plan for its Middle East
     operations, including a proposed liquidation plan and budget for such
     operations.

                                       9
<PAGE>

               aa. The Company shall pay or cause to be paid all accrued but
          unpaid interest owing by its Australian Subsidiary to Bank One, NA
          (including interest accruing during the Improvement Period).

               bb. There shall be no other Default or Unmatured Default under
          the Credit Agreement (as modified herein) or the other Loan Documents
          (except for the Existing Defaults expressly acknowledged and waived in
          this Amendment through the effective date hereof).

Notwithstanding the provisions of this Section 1.2, all indebtedness of the
Borrowers to the Lenders shall be due and payable on demand in the discretion of
the Required Lenders (i) upon any failure of any one or more of the conditions
set forth in this Section 1.2 or (ii) upon expiration or termination of the
Improvement Period as provided in and subject to Sections 1.6 and 5.3 hereof.
Further, any failure of any one or more of the conditions set forth in this
Section 1.2 shall constitute a Default under the Loan Documents (without the
necessity of any notice or cure period).

     1.3 No Course of Dealing; Review of the Borrowers' Business Plan. The
Borrowers and the Guarantors acknowledge and agree that notwithstanding any
course of dealing between the Borrowers and the Lenders prior to the date
hereof, the Lenders shall have no obligation to make Loans to the Borrowers
outside of the strict conditions and requirements of the Credit Agreement (as
modified herein) nor to forbear from exercising available remedies except as
expressly set forth herein. Notwithstanding any past practice, the Borrowers and
the Guarantors agree that (i) the Agent and the Lenders shall not be obligated
or expected to honor any "overdrafts" or items for which funds of the Borrowers
are not immediately available, and (ii) the Agent and the Lenders shall not be
obligated or expected to provide any credit references on behalf of the
Borrowers, and any inquiries in this regard may be referred back to the
Borrowers or their advisors. The Agent and the Lenders shall be under no
obligation whatsoever to consent to the Borrowers' updated and revised business
plan as the same may be further revised from time to time, and instead the
Agent's and the Lenders' consideration of the Borrowers' updated and revised
business plan shall be undertaken by the Agent and the Lenders in their sole and
absolute discretion. The Agent's and the Lenders' consideration of the
Borrowers' updated and revised business plan shall be without prejudice to (i)
the possibility that the Agent or the Lenders may conclude that such business
plan, as further revised from time to time, does not adequately address the
Borrowers' defaults under the Loan Documents and/or the potential erosion of
collateral supporting the Borrowers' indebtedness to the Lenders, or (ii) the
right of the Agent or the Lenders, in accordance with the terms hereof, to
exercise rights or remedies available due to defaults under the Loan Documents
(as modified herein).

     1.4 Defaults. In addition to any events of default specified in the Loan
Documents, the following shall constitute a Default under this Amendment and
under the Loan Documents:

          a. Any Borrower or any Guarantor shall fail to comply with, perform or
observe any term, condition, covenant or agreement set forth in this Amendment;

          b. Any representation or warranty of Borrowers or Guarantors contained
in this Amendment shall be untrue in any material respect when made or shall,
during the term of this Amendment, become impaired, untrue or misleading;

          c. With the exception of the Existing Defaults waived as set forth in
the Second Amendment and in this Amendment, the occurrence of any new or further
violation of the sections of the Credit Agreement implicated by any of the
Existing Defaults;

          d. The occurrence of any default under the Senior Note Agreement;

                                       10
<PAGE>

          e. Any further change having a Material Adverse Effect shall occur in
business, properties, operations or condition (financial or otherwise) of any
Borrower or any Guarantor; or

          f. The Aggregate Total Outstandings of all Lenders shall on any date
exceed the Borrowing Base as of such date, and the Borrowers shall fail to pay
on such date not less than the amount of such excess for application against the
Aggregate Total Outstandings.

     1.5 Expiration; No Further Extension Implied. The Borrowers and the
Guarantors acknowledge that the Agent and the Lenders have no obligation to
extend the term of the Improvement Period or further extend the Facility
Termination Date, or forbear from enforcing their rights and remedies before the
end of the Improvement Period in the event of any failure of any one or more of
the terms and conditions expressed herein, that no course of dealing that would
permit arguing for further extensions contrary to the Lenders' wishes exists or
is capable of being inferred, and that nothing contained herein or otherwise is
intended to be a promise or agreement to continue to extend the term of the
Improvement Period beyond October 31, 2002 or the Facility Termination Date
beyond July 31, 2003 or to extend any further credit to the Borrowers except as
provided in the Credit Agreement as herein amended. Furthermore, no future
agreement by the Agent and the Lenders to continue to extend the term of the
Improvement Period beyond October 31, 2002 or the Facility Termination Date
beyond July 31, 2003 or any other agreement shall be valid or enforceable unless
it is contained in a final written agreement signed by authorized
representatives of the Agent and the Required Lenders (or, to the extent
required by Section 8.2 of the Credit Agreement, all of the Lenders).
Preliminary understandings or agreements on one or more issues during the course
of any negotiations and prior to the finalization thereof shall not be binding
unless and until such a final written agreement is executed on behalf of the
applicable parties.

     1.6 Remedies Upon Default or Termination. The Improvement Period shall
expire automatically upon the earlier to occur of:

          (i) a further Default or a default under this Amendment or any
document or agreement comprising the Loan Documents, and without notice or an
opportunity to cure such Default or default under this Amendment, or

          (ii) except as provided in a further written agreement (if any) among
the Borrowers, the Agent and the Required Lenders pertaining to the repayment of
the Borrowers' obligations, October 31, 2002.

Upon the expiration of the Improvement Period, if the Borrowers are not then in
full compliance with all provisions of the Loan Documents (as amended by this
Amendment but without the benefit of any waiver of defaults except as expressly
provided in Section 5.3 of the Second Amendment and Section 5.3 of this
Amendment), upon the election of the Required Lenders but without further
notice, all of the Borrowers' obligations to the Lenders shall be immediately
due and payable (to the extent not already due and payable), all undertakings of
the Agent and the Lenders hereunder, including without limitation the Agent's
and the Lenders' forbearance, shall terminate without notice to the Borrowers
and without the requirement of any further action by or on behalf of the Agent
or the Lenders, the waiver of the Existing Defaults as set forth in the Second
Amendment and in this Amendment shall be deemed rescinded ab initio, and the
Agent or the Lenders shall have the right to exercise any remedies provided in
this Amendment or any of the Loan Documents, or under applicable law or in
equity. All rights and remedies of the Agent and the Lenders shall be cumulative
and not exclusive, and the Agent or the Lenders shall be entitled to pursue one
or more rights and/or remedies simultaneously or sequentially without the
necessity of an election of remedies.

                                       11
<PAGE>

     1.7 Reservation of Rights; No Waiver by Conduct. The Second Amendment, as
modified by the Third Amendment, the Fourth Amendment and the Fifth Amendment,
and as further modified by this Amendment, grants a limited forbearance until
October 31, 2002 only, or until an earlier Default, upon the terms and
conditions set forth in the Second Amendment, the Third Amendment, the Fourth
Amendment, the Fifth Amendment and this Amendment. Excepting only the waiver of
the Existing Defaults as set forth in the Second Amendment and in this
Amendment, nothing herein shall be deemed to constitute a waiver of any new
Unmatured Defaults or Defaults of any other provision of any of the documents
referred to herein, and nothing herein shall in any way prejudice the rights and
remedies of the Agent and/or the Lenders under any of the documents referred to
herein or applicable law. Further, the Agent and the Lenders shall have the
right to waive any conditions set forth in this Amendment and/or such documents,
in their sole discretion, and any such waiver shall not prejudice, waive or
reduce any other right or remedy which the Agent or the Lenders may have against
the Borrowers or the Guarantors. No waiver of the rights or any condition of
this Amendment and/or any other document by the Agent or the Lenders shall be
effective unless the same shall be contained in a writing signed by authorized
representatives of the Agent or the Lenders, as the case may be, in the manner
required by Section 8.2 of the Credit Agreement. No course of dealing on the
part of the Agent or the Lenders, nor any delay or failure on the part of the
Agent or the Lenders in exercising any right, power or privilege hereunder shall
operate as a waiver of such right, power or privilege, nor shall any single or
partial exercise thereof preclude any further exercise thereof or the exercise
of any other right, power or privilege.

     1.8 Limitations on Certain Advances. Notwithstanding the provisions of
Sections 2.7 and 2.8 of the Credit Agreement, from and after the Sixth Amendment
Effective Date and during the remainder of the Improvement Period (and, absent a
further written agreement among the Borrowers and the Lenders to the contrary,
thereafter until the Facility Termination Date), each Borrower agrees that the
Lenders shall not be obligated to advance any Eurocurrency Loan and the
Borrowers shall not request new Eurocurrency Advances, and any existing
Eurocurrency Loans shall, at the end of the applicable Interest Period therefor,
automatically be converted into a Floating Rate Loan.

     1.9 Survival. All representations, warranties, covenants, agreements,
releases and waivers made by or on behalf of the Borrowers or any Guarantor
under this Amendment shall survive and continue after the expiration or
termination of the Improvement Period.

                                   ARTICLE 2.
                                   AMENDMENTS

         Effective as of the Sixth Amendment Effective Date, the Credit
Agreement shall be amended as follows:

     2.1 The definition of "Borrowing Base" in Section 1.1 of the Credit
Agreement is restated in its entirety as follows:

         "Borrowing Base" means, as of any date, the lesser of (i) the
         Sixth Amendment Borrowing Base Sublimit or (ii) the sum, based
         on the U.S. Dollar Equivalent thereof, of (a) an amount equal
         to 75% of the amount of Eligible Accounts Receivable, plus (b)
         an amount equal to 40% of the amount of Eligible Inventory.

                                       12
<PAGE>

     2.2 The definition of "Facility Termination Date" in Section 1.1 of the
Credit Agreement is restated in its entirety as follows:

         "Facility Termination Date" means July 31, 2003, or any
         earlier date on which the Aggregate Commitment is reduced to
         zero or otherwise terminated pursuant to the terms hereof.

     2.3 A new definition of "Sixth Amendment Borrowing Base Sublimit" is added
to Section 1.1 of the Credit Agreement in appropriate alphabetical order,
stating as follows:

         "Sixth Amendment Borrowing Base Sublimit" shall mean, as of
         any date, $36,000,000 less the aggregate amount of any
         Reduction Payments received by the Lenders on a cumulative
         basis after the Sixth Amendment Effective Date and on or prior
         to the date of calculation, provided that the Sixth Amendment
         Borrowing Base Sublimit may be increased from time to time
         upon the written consent of the Required Lenders.

     2.4 A new definition of "Sixth Amendment Effective Date" is added to
Section 1.1 of the Credit Agreement in appropriate alphabetical order, stating
as follows:

         "Sixth Amendment Effective Date" shall mean September 23, 2002.

     2.5 (a) The Aggregate Commitments shall be reduced to $37,500,000 as of the
Sixth Amendment Effective Date. Schedule 1.1 annexed to the Credit Agreement (as
previously amended) is further amended and restated by substituting therefor
Schedule 1.1 annexed to this Amendment, showing the respective Canadian
Commitments and U.S. Commitments of each Lender as of the Sixth Amendment
Effective Date, and, subject to subparagraph (b) below, the corresponding
definitions in Section 1.1 of the Credit Agreement for "Aggregate Canadian
Commitments," "Aggregate Commitments," "Aggregate U.S. Commitments," "Canadian
Commitment," "Commitment" and "U.S. Commitment" shall be modified accordingly.
The Aggregate Commitments shall be reduced from time to time in accordance with
the provisions of Section 2.6.8 of the Credit Agreement.

         (b) Under the provisions of the Credit Agreement, the election of the
Company to request U.S. Revolving Credit Loans versus the election of the
Canadian Borrower to request Canadian Revolving Credit Loans could create an
imbalance between each Lender's Outstanding Credit Exposure compared to its
intended Pro Rata Share of the Commitments. The Lenders desire to correct such
potential imbalance, such that the respective Outstanding Credit Exposure of the
Lenders will be based upon Aggregate Total Outstandings notwithstanding any
election of the Company or the Canadian Borrower to request U.S. Revolving
Credit Loans versus Canadian Revolving Credit Loans. To effect such correction,
(i) the following definitions in Section 1.1 of the Credit Agreement are
modified as follows:

               (A) "Canadian Commitment" means, as to any Lender at any time,
          its obligation to make Loans to the Canadian Borrower under Section
          2.1.2 in an aggregate amount not to exceed at any time outstanding the
          Equivalent Amount in Canadian Dollars of the lesser of (a) the Dollar
          amount set forth opposite such Lender's name in Schedule 1.1 under the
          heading "Canadian Commitment" or (b) such Lender's total Commitment
          less the then-outstanding principal amount of any U.S. Revolving
          Credit Loans advanced by such Lender to the Company under Section
          2.1.1, or as otherwise established pursuant to Section 13.3, as

                                       13
<PAGE>

          such amount may be reduced from time to time pursuant to
          Sections 2.4, 13.3 and the other applicable provisions hereof.

               (B) "U.S. Commitment" means, as to any Lender at any time, its
          obligation to make Revolving Credit Loans to the Company in Dollars in
          an aggregate amount not to exceed at any time outstanding the lesser
          of (a) the U.S. Dollar amount set forth opposite such Lender's name in
          Schedule 1.1 under the heading "U.S. Commitment" or (b) such Lender's
          total Commitment less the then-outstanding principal amount of any
          Canadian Revolving Credit Loans advanced by such Lender to the Company
          under Section 2.1.2, or as otherwise established pursuant to Section
          13.3, as such amount may be reduced from time to time pursuant to
          Sections 2.4, 13.3 and the other applicable provisions hereof.

and (ii), the following Section 12.3 is inserted in Article XII of the Credit
Agreement:

               12.3 Correction of Pro Rata Share of Loans. If at any time, due
          to currency fluctuations or otherwise, the Aggregate Total
          Outstandings of any Lender compared to the Aggregate Total
          Outstandings of all Lenders exceeds such Lender's respective Pro Rata
          Share of the Aggregate Commitments, then such Lender may elect, upon
          at least three Business Days' prior written notice given to the Agent,
          to require that each of the other Lenders acquire, without recourse or
          warranty, an undivided interest and participation in a portion of such
          Lender's outstanding Loans in an amount sufficient to cause the
          Aggregate Total Outstandings of each Lender (including the
          participations so acquired) compared to the Aggregate Total
          Outstandings of all Lenders to be equal to each Lender's respective
          Pro Rata Share of the Aggregate Commitments. Such written notice to
          the Agent shall specify the date of such acquisition and the aggregate
          amount in which the other Lenders will be required to participate.
          Promptly upon receipt of such notice, the Agent will give notice
          thereof to the remaining Lenders, specifying in such notice the amount
          that each remaining Lender will be required to purchase. The remaining
          Lenders agree, absolutely and unconditionally, to complete such
          purchase (and make payment therefor to the Agent for the account of
          the requesting Lender) whether or not a Default is then continuing or
          any other condition precedent for the advance of any Loan is then met,
          and notwithstanding any reduction or termination of the Commitment,
          provided, however, that in no event shall any Lender be required to
          acquire any such interest or participation if the effect thereof would
          be that such Lender's Aggregate Total Outstandings would exceed such
          Lender's Commitment.

     2.6 In Section 2.15.2(c) of the Credit Agreement, the reference to
"$5,000,000" shall be deleted and "$2,000,000" substituted therefor.

     2.7 Section 2.6.8 of the Credit Agreement, as added by the Second
Amendment, is amended and restated in its entirety as follows:

                                       14
<PAGE>

         2.6.8 (a) In addition to all other payments required hereunder,
         simultaneously upon the making of any principal payment to the
         Noteholders under the Senior Note Agreement at any time on or
         after the Sixth Amendment Effective Date, the Borrowers shall
         prepay the Aggregate Total Outstandings by an amount equal to
         the Reduction Amount. Such payments shall be applied to the
         Aggregate Total Outstandings on a pro rata basis between the
         U.S. Commitment and the Canadian Commitment, and such Commitments
         shall also be permanently reduced in connection with such
         prepayment.

             (b) If, after giving effect to any Reduction Payment
         required under subparagraph (a) above, the Aggregate Total
         Outstandings would not exceed the Borrowing Base, then such
         Reduction Payment need not be made, provided that, nevertheless,
         the Commitments and the Sixth Amendment Borrowing Base Sublimit
         shall each be permanently reduced by the Reduction Amount as
         if the Reduction Payment had been made.

     2.8 Subparagraph (xi) of Section 6.1 of the Credit Agreement, as added by
the Second Amendment, is further amended by deleting said subparagraph (xi) and
inserting the following in place thereof:

             (xi) As soon as available and in any event within thirty
         (30) days after the end of each month, the consolidated
         balance sheet of the Company and its Subsidiaries as of the end
         of such month, and the related consolidated statements of
         income and cash flows of the Company and its Subsidiaries for
         such month and for the period commencing at the end of the
         previous fiscal year and ending with the end of such month,
         in form and detail acceptable to the Agent, setting forth in
         each case in comparative form the corresponding figures for
         the corresponding date or period of the preceding fiscal
         year and the variances, if any, from the most recent budget
         and forecast delivered to the Agent and the Lenders pursuant
         to Section 4.4 of that certain Sixth Amendment to Credit
         Agreement dated as of September 23, 2002, and together with
         a duly executed compliance certificate in the form of
         Exhibit E;

     2.9 Sections 6.19.1 and 6.19.2 of the Credit Agreement, as previously
amended by the Second Amendment, the Third Amendment, the Fourth Amendment and
the Fifth Amendment, are hereby deleted.

     2.10 Section 6.19.3 of the Credit Agreement is amended and restated in its
entirety as follows:

             6.19.3 Minimum Consolidated Net Worth. The Company will at all
         times maintain Consolidated Net Worth of not less than (i) $28,482,000
         for the period from the Sixth Amendment Effective Date to and including
         September 29, 2002 and (ii) thereafter, $28,471,000.

         During the Improvement Period, the parties agree that Consolidated Net
Worth shall be calculated exclusive of (a) gains or losses recognized upon asset
dispositions or (b) any impairment to goodwill or other intangible assets to the
extent required by new accounting regulations promulgated after the date of the
Credit Agreement.

                                       15
<PAGE>

     2.11 The Pricing Schedule attached to the Credit Agreement, as amended in
the First Amendment and in the Second Amendment, shall be further amended by
substituting the following in place thereof:

                                PRICING SCHEDULE

         APPLICABLE MARGIN
             Floating Rate                                      5.00%

         APPLICABLE FACILITY FEE RATE
             Facility Fee                                       1.00%

         APPLICABLE FACILITY LC RATE
             Facility LC Fee                                    5.00%

The amendment of such Pricing Schedule shall not restrict the right of the
Lenders to impose the rates specified in Section 2.9 of the Credit Agreement (as
amended in the Second Amendment) as a consequence of any new Default after the
Sixth Amendment Effective Date.

                                   ARTICLE 3.
                                 REPRESENTATIONS

         Each Borrower represents and warrants to the Agent and the Lenders
that:

     3.1 The execution, delivery and performance by it of this Amendment are
within its powers, have been duly authorized by all necessary action and are not
in contravention with any law, rule or regulation, or any judgment, decree,
writ, injunction, order or award of any arbitrator, court or governmental
authority, of the terms of its Articles of Incorporation or By-laws, or any
contract or undertaking to which it is a party or by which it or its property is
or may be bound.

     3.2 This Amendment is its legal, valid and binding obligation, enforceable
against it in accordance with the terms hereof.

     3.3 No consent, approval or authorization of or declaration, registration
or filing with any governmental authority or any nongovernmental person or
entity, including, without limitation, any of its creditors or stockholders, is
required on its part in connection with the execution, delivery and performance
of this Amendment or as a condition to the legality, validity or enforceability
of this Amendment.

     3.4 After giving effect to the amendments herein contained, the
representations and warranties contained in Article V of the Credit Agreement
are true on and as of the date hereof with the same force and effect as if made
on and as of the date hereof.

                                       16
<PAGE>

                                   ARTICLE 4.
                      ADDITIONAL COVENANTS OF THE BORROWERS

     Each Borrower shall:

     4.1 Promptly perform and observe, and cause each Guarantor to perform and
observe, its respective obligations set forth in this Amendment.

     4.2 Cause each of the Guarantors to execute the Consent and Agreement at
the end of this Amendment.

     4.3 Upon request by the Agent, promptly prepare and deliver to the Agent
and the Lenders an updated and detailed business plan (which may consist of
updates and revisions to the plan submitted to the Lenders in May, 2001,
September, 2001 and May, 2002), viability analysis and financial strategy to
improve the Borrowers' business operations and financial condition, which plan
and strategy shall cover the period at least through July 31, 2003 and shall
address, inter alia, repayment of the indebtedness owed to the Lenders.

     4.4 Upon request by the Agent, promptly prepare and deliver to the Agent
and the Lenders an updated and detailed budget forecast for the remainder of the
Improvement Period and thereafter through July 31, 2003, including financial and
cash flow projections based upon Borrowers' business improvement plan, and such
budget forecast and projections shall be acceptable to the Required Lenders
(upon such acceptance, such budget forecast and projections shall be referred to
as the "Accepted Forecast"). The cash flow projections shall be based on a
rolling thirteen (13) week period through September 30, 2002 and on a monthly
basis thereafter. Projected capital expenditures shall be shown in the
projections as a separate line item. Not later than Wednesday of each week
(commencing August 21, 2002), the Borrowers shall update all applicable line
items of the Accepted Forecast and cash flow projections to reflect actual
results from the prior week and on a cumulative basis, and shall prepare and
deliver to the Agent and the Lenders such update and a report of any variances
between actual results and the Accepted Forecast originally approved by the
Required Lenders.

     4.5 Promptly deliver to the Lenders such information as has previously been
requested in writing by the Lenders, the Agent or the Agent's financial
consultant.

     4.6 To the extent requested by the Agent and to the extent not cost
prohibitive (as determined by the Agent), promptly (within five (5) days after
such request) cause each of its Foreign Subsidiaries to execute and deliver to
the Agent one or more guarantees (in form and substance satisfactory to the
Agent) of the Borrowers' indebtedness in favor of the Lenders.

     4.7 To the extent requested by the Agent and to the extent not cost
prohibitive (as determined by the Agent), promptly (within five (5) days after
such request) cause each of its Foreign Subsidiaries to complete the execution
and delivery of the Collateral Documents as required by the Agent.

     4.8 Upon request by the Agent, promptly complete all matters required by
the Agent for full implementation of the dominion of funds arrangement between
the Borrowers and the Agent and otherwise cooperate with the implementation of
such arrangement.

     4.9 Promptly execute and deliver, and cause each Guarantor to execute and
deliver, such other documents as the Agent or the Lenders may reasonably
request.

                                       17
<PAGE>

                                   ARTICLE 5.
                                 MISCELLANEOUS.

     5.1 Cross References. References in the Credit Agreement or in any note,
certificate, instrument or other document to the "Credit Agreement" shall be
deemed to be references to the Credit Agreement as amended hereby and as further
amended from time to time.

     5.2 Expenses and Costs. Each Borrower, jointly and severally, agrees to pay
and to save the Agent and the Lenders harmless for the payment of all fees,
out-of-pocket disbursements, and other costs and expenses incurred by or on
behalf of the Agent or any Lender arising in any way in connection with this
Amendment, or any other document relating to indebtedness described in the
recitals to this Amendment, including the fees and expenses of Dickinson Wright
PLLC, counsel to the Agent, and AlixPartners, LLC, consultant to the Agent, and
specifically including, without limitation, (a) the cost of any financial audit
or inquiry conducted by the Agent, any Lender or their consultants, (b) the fees
and expenses of counsel for the Agent or any Lender for the work performed as a
result of the Borrowers' defaults or financial problems, and for the
preparation, examination and approval of this Amendment or any documents in
connection with this Amendment, (c) for the payment of all fees and
out-of-pocket disbursements incurred by the Agent or any Lender, including
attorneys' fees, in any way arising from or in connection with any action taken
by the Agent or any Lender to monitor, advise, enforce or collect the
obligations described in the recitals hereto or to enforce any obligations of
the Borrowers or any Guarantor under this Amendment or the other documents
referred to herein, including any actions to lift the automatic stay or to
otherwise in any way participate in any bankruptcy, reorganization or insolvency
proceeding of any Borrower or Guarantor or in any trial or appellate
proceedings, and (d) any expenses or fees (including attorneys' fees) incurred
in relation to or in defense of any litigation instituted by any Borrower, any
Guarantor or any third party against the Agent or any Lender arising from or
relating to the obligations described in the recitals hereto or this Amendment,
including any so-called "lender liability" action. All of these expenses and
fees (including attorneys' fees) shall be part of the Obligations owing under
the Credit Agreement, and shall be secured by all of the collateral described in
the Collateral Documents. In the event the Borrowers fail to pay any such fees,
expenses and costs within five (5) days of being invoiced therefor, the Agent or
the Lenders, as the case may be, shall be permitted to charge the accounts of
any Borrower for such fees, expenses and costs, without prejudice to any other
rights or remedies of the Agent or the Lenders. The rights and remedies of the
Agent and the Lenders contained in this paragraph shall be in addition to, and
not in lieu of, the rights and remedies contained in the Credit Agreement, the
Collateral Documents and as otherwise provided by law.

     5.3 Waiver of March 2002 Defaults. The Borrowers have requested that the
Lenders and the Agent waive the March 2002 Defaults subject to the terms and
conditions set forth herein. Pursuant to such request, the Lenders and the Agent
hereby waive the March 2002 Defaults for the period prior to the effectiveness
of this Amendment and, so long as there is no occurrence of a new Default (for
purposes hereof, a new Default includes a new or further violation of any of the
sections of the Credit Agreement implicated in any of the Existing Defaults),
for the remainder of the Improvement Period. Such waiver shall not extend to any
period of time after the Improvement Period except to the extent expressly
provided in a further written agreement among the Borrowers and the Required
Lenders, provided that such waiver shall automatically survive the expiration of
the Improvement Period if the Borrowers are then in full compliance with all
provisions of the Loan Documents (as amended by this Amendment but without the
benefit of any waiver of defaults except as set forth in this Section 5.3 and in
Section 5.3 of the Second Amendment). The Borrowers acknowledge and agree that
the waiver contained herein is a limited, specific and one-time waiver as
described above. Such limited waiver (a) shall not modify or waive any other
term, covenant or agreement contained in any of the Loan Documents, and (b)
shall not

                                       18
<PAGE>

be deemed to have prejudiced any present or future right or rights which the
Agent or the Lenders now have or may have under this Amendment, the Credit
Agreement (as modified hereby) or the other Loan Documents.

     5.4 Release. Each Borrower and each Guarantor represents and warrants that
it is not aware of any claims or causes of action against the Agent or any
Lender, any participant lender or any of their successors or assigns, and that
it has no defenses, offsets or counterclaims with respect to the indebtedness
owed by the Borrowers to the Lenders. Notwithstanding this representation and as
further consideration for the agreements and understandings herein, the
Borrowers and Guarantors, on behalf of themselves and their respective
employees, agents, executors, heirs, successors and assigns, hereby release the
Agent and the Lenders, their respective predecessors, officers, directors,
employees, agents, attorneys, affiliates, subsidiaries, successors and assigns,
from any liability, claim, right or cause of action which now exists or
hereafter arises as a result of acts, omissions or events occurring on or prior
to the date hereof, whether known or unknown, including but not limited to
claims arising from or in any way related to the Credit Agreement or the
business relationship among the Borrowers, the Guarantors, the Agent and the
Lenders.

     5.5 Performance by Lenders and Agent; No Agency; Borrowers Remain in
Control. Each Borrower and each Guarantor acknowledges and agrees that the Agent
and the Lenders have fully performed all of their obligations under the Credit
Agreement and all documents executed in connection with the Credit Agreement,
and that all actions taken by the Agent and the Lenders are reasonable and
appropriate under the circumstances and within their rights under the Credit
Agreement and all other documents executed in connection therewith and otherwise
available. The actions of the Agent and the Lenders taken pursuant to this
Amendment and the documents referred to herein are in furtherance of the efforts
of the Agent and the Lenders as secured lenders seeking to collect the
obligations owed to the Lenders. Nothing contained in this Amendment shall be
deemed to create a partnership, joint venture or agency relationship of any
nature among the Borrowers and the Lenders or the Agent. The Borrowers, the
Guarantors, the Agent and the Lenders agree that notwithstanding the provisions
of this Amendment, each Borrower remains in control of its business operations
and determines the business plans (including employment, management and
operating directions) for its business.

     5.6 Entire Agreement; Severability. The Credit Agreement, as previously
amended and as amended by this Amendment, constitutes the entire understanding
of the parties with respect to the subject matter hereof and may only be
modified or amended by a writing signed by the party to be charged. If any
provision of this Amendment is in conflict with any applicable statute or rule
of law or otherwise unenforceable, such offending provision shall be null and
void only to the extent of such conflict or unenforceability, but shall be
deemed separate from and shall not invalidate any other provision of this
Amendment.

     5.7 No Other Promises or Inducements. There are no promises or inducements
which have been made to any signatory hereto to cause such signatory to enter
into this Amendment other than those which are set forth in this Amendment. Each
Borrower and each Guarantor acknowledges that its authorized officers have
thoroughly read and reviewed the terms and provisions of this Amendment and are
familiar with same, that the terms and provisions contained herein are clearly
understood by the Borrower or Guarantor and have been fully and unconditionally
consented to by the Borrower or Guarantor, and that the Borrower or Guarantor
has had full benefit and advice of counsel of its own selection, or the
opportunity to obtain the benefit and advice of counsel of its own selection, in
regard to understanding the terms, meaning and effect of this Amendment, and
that this Amendment has been entered into by the Borrower and Guarantor freely,
voluntarily, with full knowledge, and without duress, and that in executing this
Amendment, the Borrower and Guarantor is relying on no other representations,
either written or oral, express or implied, made by any other party hereto, and
that the consideration hereunder received by the Borrower has been actual and
adequate.

                                       19
<PAGE>

     5.8 Sufficiency of Improvement Period. Each Borrower represents that: (a)
it has no intention to file or acquiesce in the filing of any bankruptcy or
insolvency proceeding hereafter, absent approval on behalf of the Agent and the
Lenders of such proceeding; and (b) the Improvement Period and forbearance
allowed by the Second Amendment, the Third Amendment, the Fourth Amendment and
the Fifth Amendment (as modified herein) are sufficient for the Borrowers to
accomplish the commitments they have undertaken in the Second Amendment, the
Third Amendment, the Fourth Amendment and the Fifth Amendment (as modified
herein).

     5.9 Ratification. The Borrowers agree that the Credit Agreement, the
Collateral Documents and all other documents and agreements executed by the
Borrowers or the Guarantors in connection with the Credit Agreement in favor of
the Agent, the Collateral Agent or any Lender are ratified and confirmed and
shall remain in full force and effect as amended hereby, and that there is no
set off, counterclaim or defense with respect to any of the foregoing. Terms
used but not defined herein shall have the respective meanings ascribed thereto
in the Credit Agreement. Without limiting the generality of the ratification set
forth above, the Company specifically confirms and ratifies its guaranty in
favor of Bank One, NA of the indebtedness owed by the Company's Australian
Subsidiary to Bank One, NA, and further confirms that all obligations under such
guaranty is part of the "Secured Obligations" under the Credit Agreement. Bank
One, NA agrees that, during the Improvement Period, it will not initiate any
enforcement action in respect of such guaranty (other than with respect to the
payment of interest as set forth in Section 1.2aa hereof), but reserves all
rights and remedies, including the right at any time to initiate any enforcement
action against the Company's Australian Subsidiary or its successors or assigns.

     5.10 Counterparts; Effectiveness. This Amendment may be executed in any
number of counterparts with the same effect as if the signatures thereto and
hereto were upon the same instrument. Facsimile copies of signatures shall be
treated as original signatures for all purposes under this Amendment. This
Amendment shall become effective as of September 23, 2002 when each of the
following has been satisfied:

     (a) Receipt by the Agent of counterparts of this Amendment duly executed by
each Borrower and each Lender, and counterparts of the Consent and Agreement
annexed hereto duly executed by each Guarantor.

     (b) With respect to any interest, fees or other charges previously required
to be paid by either Borrower under the terms of any waiver letter, extension
letter, amendment or other agreement, receipt by the Agent of full payment of
such interest, fees or other charges.

     (c) Payment of the amendment fee required under this Amendment. In the
event such fee is not received immediately upon execution of this Amendment by
the Borrowers, the Agent is authorized at any time thereafter to charge the
Company's account(s) in the amount of such fee.

     (d) Receipt by the Agent of a warrant (the "Warrant") duly executed by the
Company, in the form annexed hereto, initially exercisable for 467,126 shares of
the Common Stock of the Company.

     (e) Receipt by the Agent of counterparts of a registration rights agreement
duly executed by the Company in the form annexed hereto.

     (f) Receipt by the Agent of copies, certified by the Secretary or Assistant
Secretary of each Borrower and each Guarantor, of its Board of Directors'
resolutions and of resolutions or actions of any other body authorizing the
execution of this Amendment and all Collateral Documents to be executed in
connection herewith to which such Borrower or such Guarantor, as applicable, is
a party.

                                       20
<PAGE>

     (g) Receipt by the Agent of an incumbency certificate, executed by the
Secretary or Assistant Secretary of each Borrower and each Guarantor, which
shall identify by name and title and bear the signatures of the Authorized
Officers and any other officers of each Borrower and each Guarantor authorized
to sign this Amendment and all Collateral Documents to be executed in connection
herewith to which each Borrower and each Guarantor is a party, upon which
certificate the Agent and the Lenders shall be entitled to rely until informed
of any change in writing by such Borrower and such Guarantor.

     (h) Receipt by the Agent of a written opinion of the general counsel of the
Borrowers and the Guarantors, addressed to the Agent and Lenders and in form and
substance satisfactory to the Agent.

     (i) To the extent not previously delivered, receipt by the Agent (within
five days following written request by the Agent, or within such longer period
of time as may be acceptable to the Agent) of executed copies of all Collateral
Documents and other documents in connection therewith requested by the Agent,
together with all necessary consents and other related documents in connection
therewith, insurance certificates, financing statements, environmental reports,
opinions of foreign counsel, original stock certificates and related transfer
powers, UCC, judgment and other lien and encumbrance searches, title searches
and insurance, surveys and other documents required by the Agent.

     (j) The Company and the Noteholders shall have executed an amendment to the
Senior Note Agreement, which amendment shall be satisfactory in form and
substance to the Agent and shall not expire by its terms prior to the Facility
Termination Date.

     (k) Delivery of such other agreements and documents, and the satisfaction
of such other conditions as may be reasonably required by the Agent, including
without limitation a solvency certificate of each Borrower, and such evidence of
the perfection and priority of all liens and security interests as required by
the Agent, all of which shall be satisfactory to the Agent and its counsel to
the extent required by the Agent.

     5.11 Other Documents. Each Borrower and each Guarantor agrees to execute
and deliver any and all documents reasonably deemed necessary or appropriate by
the Agent or the Lenders to carry out the intent of and/or to implement this
Amendment.

     5.12 Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of Michigan without giving effect to
choice of law principles of such State.

     5.13 Miscellaneous. This Amendment is made for the sole benefit and
protection of the Borrowers, the Agent and the Lenders and their respective
successors and permitted assigns (provided that the Borrowers shall not be
permitted, absent the prior written consent of all of the Lenders, to assign any
of their respective rights or obligations under this Amendment). No other person
or entity shall have any rights whatsoever under this Amendment. Time shall be
of the strictest essence in the performance of each and every one of the
Borrowers' obligations hereunder.

     5.14 Construction. This Amendment shall not be construed more strictly
against the Lenders or the Agent merely by virtue of the fact that the same has
been prepared by the Lenders and the Agent or their counsel, it being recognized
that the Borrowers, the Guarantors, the Agent and the Lenders have contributed
substantially and materially to the preparation of this Amendment, and each of
the parties hereto waives any claim contesting the existence and the adequacy of
the consideration given by any of the other parties hereto in entering into this
Amendment.

                                       21
<PAGE>

     5.15 Headings. The headings of the various paragraphs in this Amendment are
for convenience of reference only and shall not be deemed to modify or restrict
the terms or provisions hereof.

     5.16 Notices to the Agent. Pursuant to Section 14.2 of the Credit
Agreement, future notice to the Agent should be addressed to the attention of
Gaye C. Plunkett, 1 Bank One Plaza, Chicago, Illinois 60670, facsimile (312)
732-1775, with a copy to William T. Burgess, Dickinson Wright, PLLC, 500
Woodward, Suite 4000, Detroit, Michigan 48226, facsimile (313) 223-3598.

     5.17 Waiver of Jury Trial; Consent to Jurisdiction. (a) The Borrowers, each
Guarantor, each Lender and the Agent hereby specifically ratifies and confirms
the waiver of jury trial set forth in Section 16.2 of the Credit Agreement.
Without limiting the generality of the preceding ratification and confirmation,
the Borrowers, each Guarantor, each Lender and the Agent, after consulting or
having had the opportunity to consult with counsel, knowingly, voluntarily and
intentionally waives any right any of them may have to a trial by jury in any
litigation or proceeding based upon or arising out of this Amendment or any
related instrument or agreement or any of the transactions contemplated by this
Amendment or any conduct, dealing, statements (whether oral or written) or
actions of any of them. None of the Borrowers, the Guarantors, the Lenders or
the Agent shall seek to consolidate, by counterclaim or otherwise, any such
action in which a jury trial has been waived with any other action in which a
jury trial cannot be or has not been waived. These provisions shall not be
deemed to have been modified in any respect or relinquished by any party hereto
except by a written instrument executed by such party.

     (b) Each Borrower and each Guarantor agrees that any legal action or
proceeding with respect to this Amendment or any related instrument or
agreement, including the Credit Agreement as previously amended and as amended
hereby, or with respect to the transactions contemplated hereby, may be brought
in any court of the State of Michigan, sitting in or having jurisdiction over
the County of Wayne, Michigan, or in any federal court located within the
Eastern District of Michigan, and Borrowers and Guarantors hereby submit to and
accept generally and unconditionally the non-exclusive jurisdiction of those
courts with respect to their person and property and irrevocably consent to
service of process in connection with any such action or proceeding by mailing
such service of process (certified or registered, if capable of certification or
registration) to Borrowers and/or Guarantors at the address they may have from
time to time provided to the Agent. Borrowers and Guarantors hereby irrevocably
waive any objection based upon jurisdiction, improper venue or forum non
conveniens in any such suit or proceeding in the above-described courts. Nothing
contained herein shall limit the right of the Agent or the Lenders to serve
process in any other manner permitted by law or limit the right of the Agent or
the Lenders to commence any such action or proceeding in the courts of any other
jurisdiction. Any judicial proceeding by any Borrower or any Guarantor against
the Agent or any Lender involving this Amendment shall be brought only in a
court in Wayne County, Michigan or federal court located within the Eastern
District of Michigan.

                             [signatures next page]

                                       22
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed and delivered as of the date and year first above written.

                                 CORRPRO COMPANIES, INC.

                                 By:   /s/ Joseph W. Rog
                                    -----------------------------------------

                                 Title:   Chief Executive Officer, President
                                        -------------------------------------

                                 CSI COATING SYSTEMS INC.

                                 By:   /s/ Joseph W. Rog
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                 BANK ONE, NA, AS AGENT AND AS A LENDER

                                 By:   /s/ Gaye C. Plunkett
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                 PNC BANK, NATIONAL ASSOCIATION

                                 By:   /s/ Larry Reynolds
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                 KEY BANK

                                 By:   /s/ Anne Richie Hohl
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                 FIRSTMERIT BANK

                                 By:   /s/ Edward Yannayon
                                     ----------------------------------------

                                 Title:   Senior Vice President
                                        -------------------------------------

                                       23
<PAGE>

                                 COMERICA BANK

                                 By:      /s/ Brian Marshall
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                 FIFTH THIRD BANK (NORTHEASTERN OHIO)

                                 By:      /s/ Raimo de Vries
                                     ----------------------------------------

                                 Title:   Commercial Banking Officer
                                        -------------------------------------

                                       24
<PAGE>

                       CONSENT AND AGREEMENT OF GUARANTORS

     As of the date and year first above written, each of the undersigned
hereby:

     (a) fully consents to the terms and provisions of the above Amendment and
the consummation of the transactions contemplated thereby and agrees to all
terms and provisions of the above Amendment applicable to it;

     (b) agrees that each Guaranty, Collateral Document and all other agreements
executed by any of the undersigned in connection with the Credit Agreement or
otherwise in favor of the Agent or the Lenders (collectively, the "Guarantor
Documents") are hereby ratified and confirmed and shall remain in full force and
effect, and each of the undersigned acknowledges that it has no setoff,
counterclaim or defense with respect to any Guarantor Document; and

     (c) acknowledges that its consent and agreement hereto is a condition to
the Lenders' obligation under this Amendment and it is in its interest and to
its financial benefit to execute this consent and agreement.

                                 GOOD-ALL ELECTRIC, INC.

                                 By:      /s/ Joseph W. Rog
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                 BASS SOFTWARE, INC.

                                 By:      /s/ Joseph W. Rog
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                 CATHODIC PROTECTION SERVICES COMPANY

                                 By:      /s/ Joseph W. Rog
                                    -----------------------------------------

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

                                 OCEAN CITY RESEARCH CORP.

                                 By:      /s/ Joseph W. Rog
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                       25
<PAGE>

                                 CCFC, INC.

                                 By:      /s/ Joseph W. Rog
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                 ROHRBACK COSASCO SYSTEMS, INC.

                                 By:      /s/ Joseph W. Rog
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                       26
<PAGE>

                                  SCHEDULE 1.1

                                   COMMITMENTS
                                 (IN US DOLLARS)

<TABLE>
<CAPTION>

            BANK                    U.S. COMMITMENT         CANADIAN COMMITMENT        TOTAL COMMITMENT          PRO-RATA SHARE
            ----                    ---------------         -------------------        ----------------          --------------

<S>                                   <C>                       <C>                       <C>                       <C>
Bank One, NA                          $8,203,125*               $6,000,000*               $8,203,125                21.875%

PNC Bank, National Association        $7,031,250                                          $7,031,250                18.750%

Key Bank                              $7,031,250                                          $7,031,250                18.750%

FirstMerit Bank, N.A.                 $7,031,250                                          $7,031,250                18.750%

Comerica Bank                         $4,687,500                                          $4,687,500                12.500%

Fifth Third Bank,                     $3,515,625                                          $3,515,625                 9.375%
Northeastern Ohio

TOTAL:                               $37,500,000*               $6,000,000*              $37,500,000               100.000%

</TABLE>

*  SEE SECTION 2.5(b) OF SIXTH AMENDMENT TO CREDIT AGREEMENT

                                       27<PAGE>

                                                                    EXHIBIT 10.2

                                                                 EXECUTION COPY

                                        September 23, 2002

Corrpro Companies, Inc.
1090 Enterprise Drive
Medina, Ohio 44256
Attn: Joseph W. Rog, CEO

Ladies and Gentlemen:

         Reference is made to that certain Note Purchase Agreement, dated as of
January 21, 1998 (as amended from time to time, the "NOTE AGREEMENT"), between
Corrpro Companies, Inc., an Ohio corporation (the "COMPANY"), and The Prudential
Insurance Company of America ("PRUDENTIAL"), pursuant to which the Company
issued and Prudential now holds the Company's Amended and Restated Senior Notes
due January 15, 2008 in an aggregate principal amount of $30,000,000 (the
"NOTES"). Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Note Agreement.

         The Company failed to make payments of principal on the Notes which
were due on each of April 15, 2002, May 15, 2002 and June 15, 2002, in each case
in the amount of $857,142.85, and failed to make payments of principal on the
Notes which were due on each of July 15, 2002, August 15, 2002 and September 15,
2002, in each case in the amount of $383,795.31 (the "PAYMENT DEFAULTS"), which
failures are continuing and constitute Events of Default under paragraph 7A(i)
of the Note Agreement. The Company has also advised Prudential that other Events
of Default exist under the Note Agreement as set forth on Annex I hereto (the
Payment Defaults and the other Events of Default listed on Annex I hereto are
referred to collectively herein as the "EXISTING EVENTS OF DEFAULT"). The
Company acknowledges that, as a result of the Existing Events of Default,
Prudential now has the right to cause the entire outstanding principal balance
of the Notes to become immediately due and payable.

         The Company has requested that Prudential agree to forbear from
exercising its rights and remedies under the Note Agreement arising as a result
of the occurrence and continuation of the Existing Events of Default and agree
to certain other changes to the Note Agreement, including to defer the date of
certain required payments of principal on the Notes, as more particularly set
forth herein. Subject to the terms and conditions hereof, and effective upon the
satisfaction of the conditions set forth herein, and provided that the Company
agrees to the modifications of the Note Agreement and the Notes set forth below,
Prudential is willing to agree to such request. Accordingly, and in accordance
with the provisions of paragraph 11C of the Note Agreement, the parties hereto
agree as follows:

         SECTION 1.  FORBEARANCE AND AGREEMENTS OF COMPANY.

         1.1 Forbearance. From and after the date hereof, subject to strict
compliance with the terms and conditions set forth herein, Prudential agrees to
forbear from enforcing its rights and remedies based on the Existing Events of
Default while the Company and its consultants

<PAGE>

continue to develop and implement their plan for improvement of the Company's
business and financial condition, provided, that such agreement to forbear shall
not create a waiver of any Existing Event of Default or of the right of
Prudential or any other any holder of the Notes, upon the occurrence of a
default hereunder or an Event of Default (other than the Existing Events of
Default) under the Note Agreement, to enforce available rights and remedies at
any time, in their sole discretion, in accordance with the Note Agreement or the
Notes, the Collateral Documents or any documents, instruments or agreements
executed in connection with any of the Note Agreement, the Notes and the
Collateral Documents (collectively with the Note Agreement, the "NOTE
DOCUMENTS"). Absent an earlier default hereunder or an Event of Default (other
than an Existing Event of Default) under the Note Agreement, or the earlier
termination of the Forbearance Period as provided in Section 1.6 hereof, the
period during which Prudential and the other holders of the Notes shall so
forbear is from the date hereof through October 31, 2002 (the "FORBEARANCE
PERIOD").

         1.2 Forbearance Conditions and Agreements of the Company. The continued
effectiveness of Prudential's forbearance agreement shall be subject to the
continued satisfaction of each of the terms and conditions specified in this
Section 1.2. All agreements made by the Company in this Section 1.2 shall be
incorporated by reference into the Note Agreement and, unless expressly
otherwise provided therein, shall survive the termination of the Forbearance
Agreement so long as the Notes are outstanding.

               (a) The Company shall keep the holders of the Notes and their
          consultants apprised of the business and financial operations of the
          Company and its Subsidiaries and of any material discussions and
          negotiations (other than discussions or negotiations in the ordinary
          course of the Company's business) pertaining to lessors, vendors,
          suppliers, customers, other creditors, joint venture partners or
          potential purchasers of any business segments or significant assets of
          the Company or any of its Subsidiaries. Reports on such matters shall
          be provided periodically and not less frequently than monthly.

               (b) Notwithstanding any prior practice, the Company shall
          strictly comply with the financial reporting requirements under the
          Note Documents. In addition to the reporting requirements set forth in
          paragraph 5A of the Note Agreement, (i) not later than Wednesday of
          each week during the Forbearance Period, the Company and its financial
          advisors will deliver to the holders of the Notes, in form and detail
          satisfactory to the holders of the Notes, weekly updates to the
          detailed 13-week rolling cash flow forecast as required under Section
          2.4 of this letter agreement; (ii) not later than the twentieth (20th)
          day of each month during the Forbearance Period, the Company and its
          financial advisors will deliver to the holders of the Notes, in form
          and detail satisfactory to the holders of the Notes: (x) a summary of
          agings of accounts payable and accounts receivable for the Company as
          of the end of the prior month, and (y) a duly-executed Officer's
          Certificate demonstrating (with computations in reasonable detail)
          compliance by the Company and its Subsidiaries with the cash flow
          restrictions set forth in clause (e) of this Section 1.2; (iii) the
          Company shall, immediately upon receipt thereof, deliver to the
          holders of the Notes copies of any correspondence, letters of intent,
          agreements or similar documents pertaining in any manner to any
          proposed sale or other disposition of any assets of the Company or its
          Subsidiaries other than in the ordinary course of business; and (iv)
          the Company shall provide to the holders of the Notes, within five (5)
          business days

                                      -2-
<PAGE>

          following any request by the holders of the Notes, a current listing
          of correct names and addresses of account debtors (together with
          periodic updates to such listing upon request by the holders of the
          Notes). If requested by the holders of the Notes, the Company promptly
          shall provide detailed backup for the monthly summary of agings of
          accounts payable and accounts receivable.

               (c) The Company shall pay when due all amounts owed to the
          holders of the Notes under the Note Documents.

               (d) All representations and warranties made by the Company under
          this letter agreement shall be true and correct.

               (e) (i) There shall be no change having a Material Adverse Effect
          on the financial performance or condition of the Company as compared
          with the projections submitted to and approved by the holders of the
          Notes in the Accepted Forecast pursuant to Section 2.4 of this letter
          agreement.

                   (ii) For each "Measuring Period" (defined below) during the
          Forbearance Period, the actual cumulative "Net Cash Flow" (defined
          below) of the Company and its domestic Subsidiaries on a consolidated
          basis during such Measuring Period shall equal or exceed the projected
          cumulative Net Cash Flow for such Measuring Period as set forth in the
          Accepted Forecast, within a negative variance of no more than the
          greater of $500,000 or 10% of projected cumulative Net Cash Flow for
          each Measuring Period as set forth in the Accepted Forecast. The term
          "NET CASH FLOW" shall mean the excess (if any) of the consolidated
          aggregate cash receipts of the Company and its domestic Subsidiaries
          during the relevant period (excluding (a) any advances of loans under
          the Credit Agreement and (b) the amount of Net Cash Proceeds generated
          by any transaction and distributed to the holders of the Notes and the
          Banks as required by the Note Agreement and by the Credit Agreement)
          compared to the consolidated aggregate cash disbursements of the
          Company and its domestic Subsidiaries during such period for operating
          expenses, taxes and debt service (but excluding principal repayments
          and interest payments to the Banks and to the holders of the Notes and
          excluding professional fees incurred in connection with the
          investigation of the Company's Australian Subsidiary), all as shown on
          the reports required pursuant to Section 2.4 of this letter agreement
          and prepared in a manner consistent with the presentation set forth in
          the Accepted Forecast. The cumulative Net Cash Flow of the Company and
          its domestic Subsidiaries shall be measured as of the end of each
          calendar month, for the cumulative period commencing April 1, 2002 and
          ending on the last day of each successive month (each a "MEASURING
          PERIOD") (i.e., the first Measuring Period shall be a one-month period
          commencing April 1, 2002 and ending April 30, 2002, the second
          Measuring Period shall be a two-month period commencing April 1, 2002
          and ending May 31, 2002, etc.).

                   (iii) The Company shall not, absent the prior written
          consent of the Required Holder(s), (a) disburse any funds for purposes
          other than those set forth in the Accepted Forecast, or (b) disburse
          any funds in an amount that would cause a violation of the Net Cash
          Flow restrictions set forth above, and shall not in any event disburse
          any

                                      -3-
<PAGE>

          funds in a manner inconsistent with any other restrictions set forth
          in this letter agreement or the Note Documents.

               (f) The Company will not permit the Consolidated Cash Flow from
          Operations of the Company and its Subsidiaries to be less than (i)
          $1,901,000 for the three consecutive months ending June 30, 2002, (ii)
          $5,279,000 for the six consecutive months ending September 30, 2002,
          (iii) $9,594,000 for the nine consecutive months ending December 31,
          2002, (iv) $11,009,000 for the twelve consecutive months ending March
          31, 2003, or (v) $2,533,000 for the three consecutive months ending
          June 30, 2003. The parties hereto acknowledge that Consolidated Cash
          Flow from Operations is calculated without regard to extraordinary
          gains or losses other than in the ordinary course of business. For the
          avoidance of doubt, the parties hereto further acknowledge that, for
          purposes of this subparagraph, the term "Consolidated Cash Flow from
          Operations" shall be calculated exclusive of (w) commissions related
          to asset dispositions, (x) gains or losses recognized upon asset
          dispositions, (y) any increase (or decrease) resulting from the
          completion of a particular asset disposition in a month that is after
          (or before) the projected sale date, and (z) restructuring charges and
          professional fees incurred in connection with the investigation of the
          Company's Australian subsidiary.

               (g) No action or proceeding shall be commenced against the
          Company or any Subsidiary that would, if adversely determined, cause a
          Material Adverse Effect or prevent, impair or delay the completion of
          the Company's business improvement plan. With respect to those actions
          or proceedings currently pending (as listed on Schedule 1.2(g)
          hereof), there shall be no event that would cause a Material Adverse
          Effect or prevent, impair or delay the completion of the Company's
          business improvement plan.

               (h) Absent prior approval on behalf of the holders of the Notes,
          the Company shall not, and will not permit any Subsidiary to, (i) file
          with any bankruptcy court or be the subject of any petition under
          title 11 of the United States Code (the "Bankruptcy Code"), (ii) be
          the subject of any order for relief issued under the Bankruptcy Code,
          (iii) file or be the subject of any petition seeking any liquidation,
          reorganization, adjustment, protection, arrangement, composition,
          dissolution or similar relief under any present or future federal or
          state act or law relating to bankruptcy, insolvency, reorganization or
          other relief for debtors, (iv) have sought or consented to or
          acquiesced in the appointment of any receiver, trustee, conservator,
          liquidator, custodian or other similar official, or (v) be the subject
          of any order, judgment or decree entered by any court of competent
          jurisdiction approving a petition filed against such party for any
          liquidation, reorganization, adjustment, protection, arrangement,
          composition, dissolution or similar relief under any present or future
          federal or state act or law relating to bankruptcy, insolvency,
          reorganization or other relief for debtors.

               (i) The holders of the Notes or their representatives or
          consultants shall be permitted to conduct field examinations of the
          Company and its Subsidiaries and audits of any collateral securing the
          obligations of the Company to the holders of the Notes. The Company
          shall reimburse the holders of the Notes for all costs incurred in
          conducting such audits. The foregoing permission to conduct audits
          shall not restrict or impair the right of the holders of the Notes to
          inspect the collateral and any records pertaining

                                      -4-
<PAGE>

          thereto at such times and at such intervals as the holders of the
          Notes may require. Further, the Company acknowledges and agrees that
          the holders of the Notes reserve the right to engage the services of
          one or more appraisers to evaluate the properties of the Company and
          its Subsidiaries. The Company acknowledges its responsibility to
          reimburse the holders of the Notes for the fees and disbursements
          incurred by such parties in connection with such engagements.

               (j) Neither the Company nor any of its Subsidiaries shall take
          any action or fail to take any action within its reasonable control
          that would cause a material adverse change in the ability of the
          Company and its Subsidiaries to obtain supplies or other assets to
          continue their operations. Upon the occurrence of any event not within
          the reasonable control of the Company or its Subsidiaries that would
          cause a material adverse change in the ability of the Company and its
          Subsidiaries to obtain supplies or other assets to continue their
          operations, the Company shall immediately initiate and diligently
          complete such actions as may be necessary to avoid any impairment or
          delay in the operations of the Company and its Subsidiaries.

               (k) Notwithstanding anything in the Note Agreement to the
          contrary (including without limitation the provisions of paragraph
          6B(2) of the Note Agreement), absent the prior written consent of the
          Required Holder(s), the Company shall not, and shall not permit or
          cause any of its Subsidiaries to, create, incur, assume or suffer to
          exist any Debt other than (i) subject to Section 1.2(s)(b) hereof,
          Debt outstanding under the Credit Agreement, (ii) Debt of the Company
          or any Subsidiary owing to the Company or any of its Subsidiaries,
          (iii) Guarantees with respect to the endorsement of instruments for
          deposit or collection in the ordinary course of business, Guarantees
          relating to Debt which is otherwise permitted under this Section
          1.2(k) and Guarantees with respect to performance guaranties given by
          the Company with respect to obligations of Subsidiaries under
          contracts in the ordinary course of business, (iv) Debt under an
          agreement, device or arrangement providing for payments which are
          related to fluctuations of interest rates, exchange rates or forward
          rates, including, but not limited to, dollar-denominated or
          cross-currency interest rate exchange agreements, forward currency
          exchange agreements, interest rate cap or collar protection
          agreements, forward rate currency or interest rate options, puts and
          warrants, (v) Debt outstanding under the Notes, (vi) Subordinated
          Debt, (vii) Debt described on Schedule 1.2(k) attached hereto,
          provided that no increase in the commitment or facility amount thereof
          shall be permitted, (viii) other Debt provided that, at the time of
          the creation, incurrence or assumption of such other Debt and after
          giving effect thereto, no Default or Event of Default exists and the
          aggregate amount of all such other Debt of the Company and its
          Subsidiaries does not exceed an amount equal to $2,000,000, and (ix)
          any refunding or refinancing of any Debt referred to in clauses (ii)
          through (viii) above, provided that any such refunding or refinancing
          of such Debt does not increase the principal amount thereof, shorten
          the maturities thereof or make any of the other terms or provisions
          thereof materially more onerous on the Company or any of its
          Subsidiaries; provided that during the Forbearance Period only Debt
          described in clauses (i), (ii), (iii), (iv), (v), (vii) and (viii)
          shall be permitted (and with respect to clause (vii), only to the
          extent that such Debt is in existence immediately prior to the
          Effective Date as described in Schedule 1.2(k), provided that no
          increase in the amount thereof shall be permitted).

                                      -5-
<PAGE>

               (l) Absent the prior written consent of the Required Holder(s),
          the Company shall not, and shall not permit or cause any of its
          Subsidiaries to, create, incur or suffer to exist any Lien other than
          Liens as permitted under paragraph 6B(1) of the Note Agreement.

               (m) Notwithstanding anything in the Note Agreement to the
          contrary (including without limitation the provisions of paragraph
          6B(5) of the Note Agreement), neither the Company nor any of its
          Subsidiaries shall agree to or consummate the sale, assignment, lease,
          conveyance, transfer or other disposition of any of its assets, except
          for (i) sales of inventory in the ordinary course of business, (ii)
          the disposition in the ordinary course of business of assets no longer
          required for business operations, provided that such assets shall not
          have a value exceeding $30,000 per item and $300,000 in the aggregate
          on a cumulative basis on or before July 31, 2003, or (iii) the
          disposition of other assets under terms approved by the Required
          Holder(s) as evidenced by the prior written consent of the Required
          Holders (provided that such consent shall require the approval of all
          of the holders of the Notes in the event of any proposed disposition
          of all or substantially all of the Collateral). With respect to clause
          (iii) of the preceding sentence, the Company has designated certain
          non-core assets or business units that it intends to list for sale or
          otherwise dispose of as soon as practicable. Schedule 1.2(m) attached
          hereto sets forth a list of each such designated non-core asset or
          business unit (each, a "Targeted Asset Disposition") and the Company's
          estimate of the net cash proceeds to be generated from the sale or
          other disposition of each such Targeted Asset Disposition (the
          "Targeted Asset Cash Proceeds"). A copy of the listing agreement (if
          applicable) with respect to each Targeted Asset Disposition shall be
          delivered to the holders of the Notes as soon as available. The
          Company shall, immediately upon receipt thereof, provide to the
          holders of the Notes copies of any written agreements or letters of
          intent pertaining to the potential sale of any Targeted Asset
          Disposition. With respect to any transaction that is approved by the
          Required Holder(s) under the provisions of this letter agreement and
          otherwise is permissible under the Note Agreement (as modified
          herein), such transaction, if consummated, shall be consummated within
          the time parameters and other terms and conditions as disclosed in the
          applicable written agreement or letter of intent. Based upon the
          Company's request, 100% of the net cash proceeds (after deducting
          customary and reasonably commissions and transaction expenses and
          after deducting any taxes attributable to the transaction) generated
          by each such transaction shall upon closing immediately be applied as
          follows: (i) 44% to prepay the principal of the Notes under paragraph
          4B of the Note Agreement, and (ii) 56% to prepay the principal of the
          Debt outstanding under the Credit Agreement.

               (n) Notwithstanding anything in the Note Agreement to the
          contrary (including without limitation the provisions of paragraph
          6B(3) of the Note Agreement), absent the consent of the Required
          Holder(s), neither the Company nor any of its Subsidiaries shall agree
          to or consummate, or make or suffer to exist, any Investment or
          Acquisition or extend credit to any other Person or enter into any
          merger or consolidation, or enter into any similar business
          arrangement or combination, except for Investments described in
          clauses (i) through (ix) of the definition of "Permitted Investments"
          (with respect to Investments described in clauses (ii) and (vi) of the

                                      -6-
<PAGE>

          definition of "Permitted Investments," only to the extent in existence
          immediately prior to the Effective Date).

               (o) Notwithstanding anything in the Note Agreement to the
          contrary, neither the Company nor any of its Subsidiaries shall
          advance any loans or credit to any officer, director, stockholder or
          other Affiliate of the Company or any of its Subsidiaries, or
          otherwise enter into any similar transaction (provided that the
          Company may continue to implement intercompany transactions with its
          Wholly-Owned Subsidiaries - other than its Australian Subsidiary -
          consistent with past practice), nor shall the Company or any of its
          Subsidiaries forgive or defer any payment of principal or interest
          with respect to any existing loan or advance to any such officer,
          director, stockholder or other Affiliate.

               (p) Notwithstanding anything in the Note Agreement to the
          contrary (including without limitation the provisions of paragraph
          6B(3) of the Note Agreement), absent the prior written consent of the
          Required Holder(s), the Company shall not, and shall not permit or
          cause any of its Subsidiaries to, declare or pay any dividends or make
          any distributions on its capital stock or redeem, repurchase or
          otherwise acquire or retire any of its capital stock, provided that
          any Subsidiary may continue to declare and pay dividends or make
          distributions to the Company or to a Wholly-Owned Subsidiary
          consistent with past practice. "Capital stock" includes warrants and
          options to purchase capital stock.

               (q) Neither the Company nor any of its Subsidiaries shall pay any
          discretionary bonus or similar compensation award to any of their
          respective officers or employees except pursuant to a comprehensive
          plan approved by the Required Holder(s). The preceding sentence shall
          not limit the right of the Company or its Subsidiaries to pay any
          bonus (i) required under any written employment agreement, incentive
          plan or similar "guaranteed" bonus plan in existence immediately prior
          to the Effective Date, (ii) under its annual incentive plan for the
          fiscal year ending March 31, 2003 (provided that such plan is
          satisfactory to the Required Holders) or (iii) negotiated as part of a
          recruitment "signing bonus" consistent with past practice. Upon
          request, the Company shall deliver to the holders of the Notes copies
          of any applicable employment agreements, incentive plans or similar
          "guaranteed" bonus plans.

               (r) The Company shall pay to Prudential: (i) an amendment fee in
          an amount equal to $282,857.14 payable as follows: (x) on or before
          September 23, 2002, not less than $141,428.57, and (y) on or before
          October 21, 2002, the difference between $282,857.14 and the amount
          paid by the Company on or before September 23, 2002 (provided, in each
          case, that the Company shall at all times have paid to Prudential a
          percentage of such fees which is not less than the percentage of the
          fees paid by the Company to the Bank Agent pursuant to Section 1.2(s)
          of that certain Sixth Amendment to Credit Agreement dated as of August
          15, 2002 by and among the Company, CSI Coating System Inc., the Bank
          Agent and the lenders set forth on the signature page thereto), and
          (ii) if the entire outstanding principal amount of the Notes has not
          been prepaid in full on or before July 31, 2003, on July 31 of each
          calendar year (commencing with July 31, 2003), until the Notes have
          been prepaid in full, an amendment fee in an amount equal to 1.00% of
          the outstanding principal balance of the Notes on such July 31.

                                      -7-
<PAGE>

               (s) The Company will not (a) reduce the amount of the
          "Commitments" under the Credit Agreement or pay any outstanding Debt
          under the Credit Agreement if such payment would cause a reduction in
          the amount of any of the "Commitments" under the Credit Agreement
          unless, in either case, the Company shall concurrently prepay an
          outstanding principal amount of the Notes pursuant to paragraph 4B(1)
          of the Note Agreement which principal amount bears the same ratio to
          the outstanding principal amount of the Notes as the amount of such
          reduction bears to the "Aggregate Commitments" under the Credit
          Agreement immediately prior to such reduction, (b) permit the
          aggregate principal amount of all Debt outstanding under the Credit
          Agreement to at anytime exceed $37,500,000, or (c) voluntarily prepay
          any other Debt.

               (t) Notwithstanding anything in the Note Agreement to the
          contrary, the Company shall not, and shall not permit any Subsidiary
          to, make any "Capital Expenditures" (as defined below) that exceed in
          the aggregate for the Company and its Subsidiaries: (a) $1,750,000
          during the fiscal year ending March 31, 2002, (b) $500,000 during the
          three-month period ending June 30, 2002, (c) $1,000,000 during the
          six-month period ending September 30, 2002, (d) $1,300,000 during the
          nine-month period ending December 31, 2002, (e) $1,500,000 during the
          twelve-month period ending March 31, 2003 or (f) $500,000 during the
          three-month period ending June 30, 2003. The term "CAPITAL
          EXPENDITURES" shall mean any expenditure for any purchase or other
          acquisition of any asset which would be classified as plant, property
          or equipment in accordance with GAAP.

               (u) On or before the Effective Date, the Company shall employ,
          and at all times until at least July 31, 2003, shall continue to
          engage, a full-time chief restructuring officer acceptable to the
          holders of the Notes. The chief restructuring officer will have
          authority that is independent of the authority of other officers of
          the Company and will report directly to the Company's board of
          directors. The scope of authority of the chief restructuring officer
          shall be acceptable to the holders of the Notes. The holders of the
          Notes will have unrestricted access to communicate directly with the
          chief restructuring officer.

               (v) The Company has advised the holders of the Notes that the
          Company intends to consult with one or more investment banking firms
          to explore various strategic alternatives, including the refinancing
          of the Notes and the Credit Agreement and the sale of certain assets
          or divisions. Subject to the approval requirements set forth below,
          the Company will retain an investment banking firm or firms acceptable
          to the holders of the Notes not later than September 30, 2002. The
          Company shall keep representatives of the holders of the Notes
          apprised of all consultations with investment banking firms. The
          Company shall not engage any investment banking firm unless the
          identity of such firm and the scope of the engagement are acceptable
          to the holders of the Notes. The Company agrees to promptly provide to
          the holders of the Notes all reports and other information prepared
          for or on behalf of the Company by any investment banking firm or
          similar consultant. The Company acknowledges and agrees that the
          holders of the Notes, their consultants and counsel shall have direct
          access to any investment banking firm or similar consultant engaged on
          behalf of the Company, and each of such parties is authorized to
          discuss information related to the Company with the holders of the
          Notes or

                                      -8-
<PAGE>

          their consultants or counsel. All parties acknowledge that Brown,
          Gibbons & Lang has been retained by the Company with respect to two
          (2) specific asset dispositions, and the holders of the Notes have
          approved such retention (which shall not be deemed approval for the
          Company to retain such firm for any other engagement).

               (w) The Company shall continue to implement the cost savings
          measures identified in the report submitted to the holders of the
          Notes on May 20, 2002.

               (x) Not later than September 30, 2002, the Company shall provide
          to the holders of the Notes and their advisors an updated written
          report on the current status of all proceedings and investigations
          related to the Company's Australian Subsidiary, including without
          limitation any interim conclusions, pending or completed actions in
          response thereto, and the status of the administration of the business
          and assets of such Subsidiary. Until completion of such
          administration, further updated status reports on such matters shall
          be provided to the holders of the Notes and their advisors not less
          frequently than weekly.

               (y) Not later than September 30, 2002, the Company shall provide
          to the holders of the Notes and their advisors a revised detailed
          restructuring plan for its strategy to divest the European Subsidiary
          and divest or liquidate its Middle East operations, including a
          proposed divestiture and/or liquidation plan and budget for such
          operations.

               (z) There shall be no other Default or Event of Default under the
          Note Agreement or the other Note Documents (except for the Existing
          Events of Default).

Notwithstanding the provisions of this Section 1.2, the Notes shall be due and
payable on demand in the discretion of the Required Holder(s) pursuant to
paragraph 7A of the Note Agreement (i) upon any failure of any one or more of
the conditions set forth in this Section 1.2 or (ii) upon expiration or
termination of the Forbearance Period as provided in Sections 1.6 and 6 hereof.
Further, any failure of any one or more of the conditions set forth in this
Section 1.2 shall constitute an Event of Default under the Note Agreement
(without the necessity of any notice or cure period).

         1.3 No Course of Dealing; Review of the Company's Business Plan. The
Company and the Guarantors acknowledge and agree that notwithstanding any course
of dealing between the Company and the holders of the Notes prior to the date
hereof, the holders of the Notes shall have no obligation to forbear from
exercising available remedies except as expressly set forth herein.
Notwithstanding any past practice, the Company and the Guarantors agree that the
holders of the Notes shall not be obligated or expected to provide any credit
references on behalf of the Company, and any inquiries in this regard may be
referred back to the Company or their advisors. The holders of the Notes shall
be under no obligation whatsoever to consent to the Company's updated and
revised business plan as the same may be further revised from time to time, and
instead the holders of the Notes consideration of the Company's updated and
revised business plan shall be undertaken by the holders of the Notes in their
sole and absolute discretion. The holders of the Notes consideration of the
Company's updated and revised business plan shall be without prejudice to (i)
the possibility that the holders of the Notes may conclude that such business
plan, as further revised from time to time, does not adequately address the
Company's defaults under the Note Documents and/or the potential erosion of
collateral supporting the

                                      -9-
<PAGE>

Company's indebtedness to the holders of the Notes, or (ii) the right of the
holders of the Notes, in accordance with the terms hereof, to exercise rights or
remedies available due to defaults under the Note Documents.

         1.4 Defaults. In addition to any Events of Default specified in the
Note Documents, the following shall constitute a default under this letter
agreement and an Event of Default under the Note Documents:

                  (a) The Company or any Guarantor shall fail to comply with,
perform or observe any term, condition, covenant or agreement set forth in this
letter agreement;

                  (b) Any representation or warranty of Company or Guarantors
contained in this letter agreement shall be untrue in any material respect when
made or shall, during the term of this letter agreement, become impaired, untrue
or misleading;

                  (c) the occurrence of any Event of Default other than the
Existing Events of Default (including any new or further violation of the
sections of the Note Agreement implicated by any of the Existing Events of
Default);

                  (d) The occurrence of any "Default" as defined in the Credit
Agreement; or

                  (e) Any further change having a Material Adverse Effect shall
occur in business, properties, operations or condition (financial or otherwise)
of the Company or any Guarantor.

         1.5 Expiration; No Further Extension Implied. The Company and the
Guarantors acknowledge that the holders of the Notes have no obligation to
extend the term of the Forbearance Period or forbear from enforcing their rights
and remedies before the end of the Forbearance Period in the event of any
failure of any one or more of the terms and conditions expressed herein, that no
course of dealing that would permit arguing for further extensions contrary to
the holders of the Notes wishes exists or is capable of being inferred, and that
nothing contained herein or otherwise is intended to be a promise or agreement
to continue to extend the term of the Forbearance Period beyond October 31, 2002
or to extend any further credit to the Company. Furthermore, no future agreement
by the holders of the Notes to continue to extend the term of the Forbearance
Period beyond October 31, 2002 or any other agreement shall be valid or
enforceable unless it is contained in a final written agreement signed by the
Required Holder(s) (or, to the extent required by paragraph 11C of the Note
Agreement, all of the holders of the Notes). Preliminary understandings or
agreements on one or more issues during the course of any negotiations and prior
to the finalization thereof shall not be binding unless and until such a final
written agreement is executed on behalf of the applicable parties.

         1.6 Remedies Upon Default or Termination. The Forbearance Period shall
expire automatically upon the earlier to occur of:

                  (a) a further Event of Default or a default under this letter
agreement or any document or agreement comprising the Note Documents, and
without notice or an opportunity to cure such Event of Default or default under
this letter agreement, or

                                      -10-
<PAGE>

                  (b) except as provided in a further written agreement (if any)
among the Company and the holders of the Notes pertaining to the repayment of
the Company's obligations, October 31, 2002.

Upon the expiration of the Forbearance Period, if the Company is not then in
full compliance with all provisions of the Note Documents (as amended by this
letter agreement but without the benefit of any waiver of defaults except as set
forth in Section 6 hereof), upon the election of the Required Holder(s) but
without further notice, all of the Company's obligations to the holders of the
Notes shall be immediately due and payable (to the extent not already due and
payable) pursuant to paragraph 7A of the Note Agreement, all undertakings of the
holders of the Notes hereunder, including without limitation the forbearance
under Section 1.1 hereof, shall terminate without notice to the Company and
without the requirement of any further action by or on behalf of the holders of
the Notes, and the holders of the Notes shall have the right to exercise any
remedies provided in this letter agreement or any of the Note Documents, or
under applicable law or in equity. All rights and remedies of the holders of the
Notes shall be cumulative and not exclusive, and the holders of the Notes shall
be entitled to pursue one or more rights and/or remedies simultaneously or
sequentially without the necessity of an election of remedies.

         1.7 Reservation of Rights; No Waiver by Conduct. Nothing herein shall
be deemed to constitute a waiver of any Defaults or Events of Default or of any
other provision of any of the documents referred to herein, and nothing herein
shall in any way prejudice the rights and remedies of the holders of the Notes
under any of the documents referred to herein or applicable law. Further, the
holders of the Notes shall have the right to waive any conditions set forth in
this letter agreement and/or such documents, in their sole discretion, and any
such waiver shall not prejudice, waive or reduce any other right or remedy which
the holders of the Notes may have against the Company or the Guarantors. No
waiver of the rights or any condition of this letter agreement and/or any other
document by the holders of the Notes shall be effective unless the same shall be
contained in a writing signed by authorized representatives of the holders of
the Notes, as the case may be, in the manner required by paragraph 11C of the
Note Agreement. No course of dealing on the part of the holders of the Notes,
nor any delay or failure on the part of the holders of the Notes in exercising
any right, power or privilege hereunder shall operate as a waiver of such right,
power or privilege, nor shall any single or partial exercise thereof preclude
any further exercise thereof or the exercise of any other right, power or
privilege.

         1.8 Survival. All representations, warranties, covenants, agreements,
releases and waivers made by or on behalf of the Company or any Guarantor under
this letter agreement shall survive and continue after the expiration or
termination of the Forbearance Period.

         SECTION 2.  COVENANTS OF THE COMPANY.  The Company shall:

         2.1 Promptly perform and observe, and cause each Guarantor to perform
and observe, its respective obligations set forth in this letter agreement.

         2.2 Cause each of the Guarantors to execute the Consent attached
hereto as Exhibit B.

         2.3 Upon request by the holders of the Notes, promptly prepare and
deliver to the holders of the Notes an updated and

                                      -11-
<PAGE>

detailed business plan (which may consist of updates and revisions to the plan
submitted to the holders of the Notes in May, 2001, September, 2001 and May,
2002), viability analysis and financial strategy to improve the Company's
business operations and financial condition, which plan and strategy shall cover
the period at least through July 31, 2003 and shall address, inter alia,
repayment of the Notes in their entirety.

         2.4 On or before September 30, 2002, promptly prepare and deliver to
the holders of the Notes an updated and detailed budget forecast for the
remainder of the Forbearance Period and thereafter through July 31, 2003,
including financial and cash flow projections based upon the Company's business
improvement plan, and such budget forecast and projections shall be acceptable
to the Required Holder(s) (upon such acceptance, such budget forecast and
projections shall be referred to as the "ACCEPTED FORECAST"). The cash flow
projections shall be based on a rolling thirteen (13) week period through
September 30, 2002 and on a monthly basis thereafter. Projected capital
expenditures shall be shown in the projections as a separate line item. Not
later than Wednesday of each week (commencing September 18, 2002), the Company
shall update all applicable line items of the Accepted Forecast and cash flow
projections to reflect actual results from the prior week and on a cumulative
basis, and shall prepare and deliver to the holders of the Notes such update and
a report of any variances between actual results and the Accepted Forecast
originally approved by the Required Holder(s).

         2.5 Promptly deliver to the holders of the Notes such information as
has previously been requested in writing by the holders of the Notes or their
financial consultant.

         2.6 To the extent requested by the holders of the Notes and to the
extent not cost prohibitive (as determined by the holders of the Notes),
promptly (within five (5) days after such request) cause each of its Foreign
Subsidiaries to execute and deliver to the holders of the Notes one or more
guarantees (in form and substance satisfactory to the holders of the Notes) of
the Company's indebtedness in favor of the holders of the Notes.

         2.7 To the extent requested by the holders of the Notes and to the
extent not cost prohibitive (as determined by the holders of the Notes),
promptly (within five (5) days after such request) cause each of its Foreign
Subsidiaries to complete the execution and delivery of the Collateral Documents
as required by the holders of the Notes.

         2.8 Upon the request of any holder of the Notes, promptly complete all
matters required by such holder for the implementation of a dominion of funds
arrangement between the Company, the Guarantor and the Collateral Agent and
otherwise cooperate with the implementation of such arrangement.

         2.9 Promptly execute and deliver, and cause each Guarantor to execute
and deliver, such other documents as the holders of the Notes may reasonably
request.

         SECTION 3. AMENDMENTS TO THE NOTE AGREEMENT. From and after the
Effective Date (as defined in Section 5 hereof), Prudential and the Company
agree that the Note Agreement shall be amended as follows:

         3.1 Paragraph 1 of the Note Agreement is amended by deleting the phrase
"a rate per annum equal to 10.60% plus the Applicable Margin" and by replacing
such phrase with the

                                      -12-
<PAGE>

phrase "the rate of 11.35% per annum until July 31, 2003 and the rate of 11.85%
per annum after July 31, 2003."

         3.2 Paragraph 4A of the Note Agreement is amended and restated in its
entirety to read as follows:

                  "4A. REQUIRED PREPAYMENTS. Until the Notes shall be prepaid in
         full, the Company shall prepay, without Yield-Maintenance Amount, the
         sum of (i) $7,560,768 on July 31, 2003, and (ii) $383,795.31 on the
         15th day of each month, commencing August 15, 2003 and continuing to
         and including December 15, 2007, in each case together with accrued and
         unpaid interest thereon, and such principal amount of the Notes shall
         become due on such prepayment dates. Any unpaid principal balance of
         the Notes, together with any accrued and unpaid interest thereon, shall
         become due on January 15, 2008, the maturity date of the Notes.
         Interest on the Notes at the rate described in the Notes for each day
         on which the principal amount thereunder is outstanding shall be paid
         monthly on the 15th day of October, 2002, and continuing on the 15th
         day of each month thereafter until the Notes have been paid in full."

         3.3 Paragraph 4B of the Note Agreement is amended and restated in its
entirety to read as follows:

                  "4B. OPTIONAL PREPAYMENT WITH YIELD-MAINTENANCE AMOUNT. The
         Notes shall be subject to prepayment, in whole at any time or from time
         to time in part, at the option of the Company, at 100% of the principal
         amount so prepaid plus interest thereon to the prepayment date and the
         Yield-Maintenance Amount, if any, with respect to each Note. Any
         partial prepayment of the Notes pursuant to this paragraph 4B shall be
         applied against the principal amount of the Notes scheduled to become
         due in the inverse order of maturity thereof."

         3.4 Paragraph 5A of the Note Agreement is amended by deleting the word
"and" at the end of clause (iv) thereof, by renumbering clause (v) thereof as
clause (vi), and by adding the following thereto as a new clause (v):

         (v) within thirty (30) days after the end of each month, the
         consolidated balance sheet of the Company and its Subsidiaries as of
         the end of such month, and the related consolidated statements of
         income and cash flows of the Company and its Subsidiaries for such
         month and for the period commencing at the end of the previous fiscal
         year and ending with the end of such month, in form and detail
         reasonably acceptable to the holders of the Notes, setting forth in
         each case in comparative form the corresponding figures for the
         corresponding date or period of the preceding fiscal year and the
         variances, if any, from the most recent budget and forecast delivered
         to the holders of the Notes pursuant to that certain letter agreement
         dated as of September 23, 2002 by and between the Company and
         Prudential, together with a duly executed Officer's Certificate
         demonstrating compliance by the Company with the provisions thereof;

                                      -13-
<PAGE>

         3.5 Paragraph 6A of the Note Agreement is amended and restated in its
entirety to read as follows:

                  "6A. MINIMUM CONSOLIDATED NET WORTH. The Company will not
         permit Consolidated Net Worth to be less than (i) at any time during
         the period beginning September 23, 2002 through and including September
         29, 2002, $28,482,000, and (ii) at any time after September 29, 2002,
         $28,471,000.

         3.6 Paragraph 7A of the Note Agreement is amended by adding the
following thereto as new clauses (xvi) and (xvii):

                  "(xvi) on or before July 31, 2003, the Company and each holder
         of the Notes fail for any reason to enter into a modification of this
         Agreement satisfactory to the holders of the Notes providing for
         financial covenants for the fiscal periods of the Company ending on and
         after July 31, 2003;

                  (xvii) on or before October 31, 2002, the Company fails to
         obtain approval of any applicable stock exchange, or other public
         trading market, of the listing of additional securities of the Company
         issueable upon exercise of any warrant made by Company in favor of
         Prudential;"

         3.7 The definition of "Applicable Margin" in paragraph 10B of the Note
Agreement is deleted in its entirety.

         3.8 The definition of "Consolidated Net Worth" in paragraph 10B of the
Note Agreement is amended and restated in its entirety as follows:

                  ""CONSOLIDATED NET WORTH" shall mean as of any time of
         determination thereof, total stockholders' equity of the Company and
         its Subsidiaries on a consolidated basis determined in accordance with
         GAAP. Notwithstanding the foregoing, during the "Forbearance Period"
         (as defined in that certain letter agreement dated as of September 23,
         2002 by and between the Company and Prudential) "Consolidated Net
         Worth" shall be calculated exclusive of (a) gains or losses recognized
         upon asset dispositions, and (b) any impairment to goodwill or other
         intangible assets to the extent required by new accounting regulations
         promulgated after the date of this Agreement."

         SECTION 4. REPRESENTATIONS AND WARRANTIES. The Company represents and
warrants to Prudential that:

         (a) The Company has all requisite corporate power to execute, deliver
and perform its obligations under this letter agreement, the Warrant and the
Registration Rights Agreement (both as hereinafter defined).

         (b) The execution, delivery and performance of this letter agreement,
the Warrant and the Registration Rights Agreement has been duly authorized by
all requisite corporate action, and this Agreement, the Warrant and the
Registration Rights Agreement have been duly executed and delivered by
authorized officers of the Company and are valid obligations of the Company,

                                      -14-
<PAGE>

legally binding upon and enforceable against the Company in accordance with its
terms, except as such enforceability may be limited by (i) bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of
creditors' rights generally and (ii) general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

         (c) The Company has duly authorized the issuance of 467,126 shares of
the Common Stock upon the exercise of the Warrant, such number of shares of the
Common Stock has been reserved for issuance upon the exercise of the Warrant
and, upon such exercise and payment of the purchase price therefor pursuant to
the Warrant, such shares will be duly authorized and issued, fully paid and
non-assessable.

         (d) On the Effective Date, immediately after giving effect to the
transactions contemplated by this letter agreement, (i) the authorized capital
stock of the Company will consist of 41,000,000 shares of capital stock
consisting of 40,000,000 shares of Common Stock, no par value, and 1,000,000
shares of Serial Preferred Stock, no par value, (ii) 8,408,276 shares of Common
Stock will be issued and outstanding and no shares of Serial Preferred Stock
will be issued and outstanding, (iii) the treasury stock of the Company will
consist of 98,611 shares of Common Stock, (iv) 467,126 shares of Common Stock
will be reserved for issuance upon exercise of the Warrant and 467,126 shares of
Common Stock will be reserved for issuance upon exercise of the warrants granted
to the Banks, and (v) other than the Warrant and the warrants granted to the
Banks, there are no other options for, rights to acquire, agreements to issue,
or securities exercisable for or convertible into shares of the Company's
capital stock.

         (e) Neither the execution nor delivery of this letter agreement, the
Warrant or the Registration Rights Agreement, nor the offering or issuance of
the Warrant, nor fulfillment of nor compliance with the terms and provisions
hereof and of the Warrant or the Registration Rights Agreement will conflict
with, or result in a breach of the terms, conditions or provisions of, or
constitute a default under, or result in any violation of, or result in the
creation of any Lien upon any of the properties or assets of the Company or any
of its Subsidiaries pursuant to, the charter or by-laws of the Company or any of
its Subsidiaries, any award of any arbitrator or any agreement (including any
agreement with stockholders), instrument, order, judgment, decree, statute, law,
rule or regulation to which the Company or any of its Subsidiaries is subject.

         (f) Neither the nature of the Company or of any Subsidiary, nor any of
their respective businesses or properties, nor any relationship between the
Company or any Subsidiary and any other Person, nor any circumstance in
connection with the offering, issuance, sale or delivery of the Warrant is such
as to require the Company or any Subsidiary to obtain or make any authorization,
consent, approval, exemption or other action by or notice to or filing with any
court or administrative or governmental body (other than notices and filings
with the Securities and Exchange Commission ("SEC"), state Blue Sky authorities,
and any applicable stock exchange or other public trading market) in connection
with the Company's execution and delivery of this letter agreement, the Warrant
or the Registration Rights Agreement, the Company's offering, issuance or
delivery of the Warrant or the Company's fulfillment of or compliance with the
terms and provisions hereof and of the Warrant or the Registration Rights
Agreement; except (i) registration statement filings with the SEC and SEC review
and clearance thereof in connection with any registration of securities under
the Securities Act, (ii) approval of

                                      -15-
<PAGE>

any applicable stock exchange, or other public trading market, of the listing
of additional securities of the Company, including those underlying the Warrant,
and (iii) any authorization, consent, approval, exemption or other action,
notice or filing required in connection with the status of any holder of the
Notes as a regulated entity (e.g., under insurance, banking or similar laws that
may apply to the business of any holder of the Notes).

         (g) The Company has not paid fees or any other consideration to the
Bank Agent or to any Bank for or with respect to any of the waivers or
amendments set forth in the "Bank Amendment" (as hereinafter defined) or the
defaults referred to therein other than those expressly set forth therein.

         (h) After giving effect hereto (i) each representation and warranty set
forth in paragraph 8 of the Note Agreement is true and correct as of the date of
the execution and delivery of this letter by the Company with the same effect as
if made on such date (except to the extent such representations and warranties
expressly refer to an earlier date, in which case they were true and correct as
of such earlier date), and (ii) no Event of Default or Default exists (other
than the Existing Events of Default).

         SECTION 5. EFFECTIVENESS. This letter agreement shall become effective
on the date (the "EFFECTIVE DATE") when each of the following conditions has
been satisfied in a manner satisfactory in form and substance to Prudential:

            (a) Prudential has received the following documents:

                (i)   counterparts of this letter agreement duly executed by the
             Company;

                (ii)  a second amended and restated Note duly executed by the
             Company in the form of Exhibit A attached hereto;

                (iii) a consent of guarantors, dated the date hereof, duly
             executed by each Guarantor, in the form attached hereto as
             Exhibit B;

                (iv)  a warrant (the "WARRANT") duly executed by the Company, in
             the form attached hereto as Exhibit C initially exercisable for
             467,126 shares of the common stock of the Company;

                (v)  counterparts to a registration rights agreement (the
             "REGISTRATION RIGHTS AGREEMENT") duly executed by the Company and
             Prudential, in the form attached hereto as Exhibit D;

                (vi) an amendment to the Credit Agreement (the "Bank
             Amendment"), dated the date hereof, duly executed by the Bank
             Agent, the Banks, the Company and CSI Coating Systems Inc.,
             amending the Credit Agreement in a manner satisfactory to
             Prudential, in form and substance satisfactory to Prudential, and
             such amendment shall be in full force and effect;

                                      -16-
<PAGE>

                (vii) a favorable opinion of the Company's counsel satisfactory
             in form and substance to Prudential as to such matters as
             Prudential may reasonably request;

                (viii) a Secretary's Certificate signed by the Secretary or
             Assistant Secretary and one other officer of the Company
             certifying, among other things (a) as to the name, titles and true
             signatures of the officers of the Company authorized to sign this
             letter and the other documents to be delivered in connection with
             this letter, (b) that attached thereto is a true, accurate and
             complete copy of the Articles of Incorporation of the Company,
             certified by the Secretary of State of the State of Ohio as of a
             recent date, (c) that attached thereto is a true, accurate and
             complete copy of the By-laws of the Company which were duly adopted
             and are in effect as of the Effective Date, (d) that attached
             thereto is a true, accurate and complete copy of the resolutions of
             the Board of Directors of the Company, duly adopted at a meeting of
             such Board of Directors, authorizing the execution, delivery and
             performance of this letter and the other documents to be delivered
             in connection with this letter, and of all other documents
             evidencing other necessary corporate action and governmental
             approvals, if any, with respect to this letter, and (e) that this
             letter and the other documents executed and delivered to Prudential
             by the Company are in the form approved by its Board of Directors
             in the resolutions referred to in clause (d), above; and

                (ix) a certificate of good standing for the Company and each
             Guarantor from the Secretary of State of the state of incorporation
             of the Company and each such Guarantor and of each state in which
             the Company or any such Guarantor is required to be qualified to
             transact business as a foreign corporation, in each case dated as
             of a recent date;

            (b) Prudential shall have received payment in immediately
         available funds of the difference between (i) the amount of interest
         which would have been payable on the Notes during the period from July
         15, 2002 to the Effective Date if the Notes had borne interest during
         such period at the rate of 13.35% per annum, and (ii) the amount of
         interest actually paid by the Company on the Notes for such period;

            (c) Prudential shall have received a written confirmation, in
         form and substance satisfactory to Prudential, signed by the Bank Agent
         and the Banks of the continued effectiveness of the Intercreditor and
         Collateral Agency Agreement, dated as of June 9, 2000, as amended by
         Amendment No. 1 thereto dated June 29, 2001, notwithstanding this
         letter agreement and the amendment to the Credit Agreement referred to
         in Section 5(a)(v) hereof;

            (d) all corporate and other proceedings in connection with the
         transactions contemplated by this letter agreement shall be
         satisfactory to Prudential and its counsel, and Prudential shall have
         received all such counterpart originals or certified or other copies of
         such documents as they may reasonably request; and

                                      -17-
<PAGE>

            (e) Prudential has received payment of all costs and expenses
         of Prudential (including reasonable fees and disbursements of special
         counsel to Prudential and of Nightingale & Associates, LLC) in
         connection with this letter and the transactions contemplated hereby.

         SECTION 6. EXISTING EVENTS OF DEFAULT. The Company has requested that
the holders of the Notes waive the Existing Events of Default subject to the
terms and conditions set forth herein. Pursuant to such request, the holders of
the Notes hereby waive the Existing Events of Default for the period prior to
the Effective Date and, so long as there is no occurrence of a new Default
hereunder of a new Event of Default under the Note Agreement (for purposes
hereof, a new Default or Event of Default includes a new or further violation of
any of the sections of the Note Agreement implicated in any of the Existing
Events of Default), for the remainder of the Forbearance Period. Such waiver
shall not extend to any period of time after the Forbearance Period except to
the extent expressly provided in a further written agreement among the Company
and the Required Holder(s), provided that such waiver shall automatically
survive the expiration of the Forbearance Period if the Company is then in full
compliance with all provisions of the Note Documents (as amended by this letter
agreement but without the benefit of any waiver of defaults except as set forth
in this Section 6 and other waivers made by the holders of the Notes prior to
the Effective Date). The Company acknowledges and agrees that the waiver
contained herein is a limited, specific and one-time waiver as described above.
Such limited waiver (a) shall not modify or waive any other term, covenant or
agreement contained in any of the Note Documents, and (b) shall not be deemed to
have prejudiced any present or future right or rights which the holders of the
Notes now have or may have under this letter agreement, the Note Agreement (as
modified hereby) or the other Note Documents.

         SECTION 7. RELEASE. The Company and each Guarantor represents and
warrants that it is not aware of any claims or causes of action against any
holder of the Notes or any of their successors or assigns, and that it has no
defenses, offsets or counterclaims with respect to the indebtedness owed by the
Company to the holders of the Notes. Notwithstanding this representation and as
further consideration for the agreements and understandings herein, the Company
and Guarantors, on behalf of themselves and their respective employees, agents,
executors, heirs, successors and assigns, hereby release the holders of the
Notes, their respective predecessors, officers, directors, employees, agents,
attorneys, affiliates, subsidiaries, successors and assigns, from any liability,
claim, right or cause of action which now exists or hereafter arises as a result
of acts, omissions or events occurring on or prior to the date hereof, whether
known or unknown, including but not limited to claims arising from or in any way
related to the Note Agreement or the business relationship among the Company,
the Guarantors, the holders of the Notes.

         SECTION 8. PERFORMANCE BY HOLDERS OF THE NOTES; NO AGENCY; COMPANY
REMAINS IN CONTROL. The Company and each Guarantor acknowledges and agrees that
the holders of the Notes have fully performed all of their obligations under the
Note Agreement and all documents executed in connection with the Note Agreement,
and that all actions taken by the holders of the Notes are reasonable and
appropriate under the circumstances and within their rights under the Note
Agreement and all other documents executed in connection therewith and otherwise
available. The actions of the holders of the Notes taken pursuant to this letter
agreement and the documents referred to herein are in furtherance of the efforts
of the holders of the Notes as

                                      -18-
<PAGE>

secured lenders seeking to collect the obligations owed to the Lenders. Nothing
contained in this Amendment shall be deemed to create a partnership, joint
venture or agency relationship of any nature among the Company and the holders
of the Notes. The Company, the Guarantors, the holders of the Notes agree that
notwithstanding the provisions of this letter agreement, the Company remains in
control of its business operations and determines the business plans (including
employment, management and operating directions) for its business.

         SECTION 9. ENTIRE AGREEMENT; SEVERABILITY. The Note Agreement, as
previously amended and as amended by this letter agreement, constitutes the
entire understanding of the parties with respect to the subject matter hereof
and may only be modified or amended by a writing signed by the party to be
charged. If any provision of this letter agreement is in conflict with any
applicable statute or rule of law or otherwise unenforceable, such offending
provision shall be null and void only to the extent of such conflict or
unenforceability, but shall be deemed separate from and shall not invalidate any
other provision of this letter agreement.

         SECTION 10. NO OTHER PROMISES OR INDUCEMENTS. There are no promises or
inducements which have been made to any signatory hereto to cause such signatory
to enter into this letter agreement other than those which are set forth in this
letter agreement. The Company and each Guarantor acknowledges that its
authorized officers have thoroughly read and reviewed the terms and provisions
of this letter agreement and are familiar with same, that the terms and
provisions contained herein are clearly understood by the Company or such
Guarantor and have been fully and unconditionally consented to by the Company or
such Guarantor, and that the Company or such Guarantor has had full benefit and
advice of counsel of its own selection, or the opportunity to obtain the benefit
and advice of counsel of its own selection, in regard to understanding the
terms, meaning and effect of this letter agreement, and that this letter
agreement has been entered into by the Company and such Guarantor freely,
voluntarily, with full knowledge, and without duress, and that in executing this
letter agreement, the Company and each Guarantor is relying on no other
representations, either written or oral, express or implied, made by any other
party hereto, and that the consideration hereunder received by the Company has
been actual and adequate.

         SECTION 11. SUFFICIENCY OF FORBEARANCE PERIOD. The Company represents
that: (a) it has no intention to file or acquiesce in the filing of any
bankruptcy or insolvency proceeding hereafter, absent approval on behalf of the
holders of the Notes of such proceeding; and (b) the Forbearance Period is
sufficient for the Company to accomplish the commitments they have undertaken
herein.

         SECTION 12. RATIFICATION. The Company agrees that the Note Agreement,
the Notes and all other documents and agreements executed by the Company or the
Guarantors in connection with the Note Agreement in favor of Prudential, any
holder of any Note, or the Collateral Agent are ratified and confirmed and shall
remain in full force and effect as amended hereby, and that there is no set off,
counterclaim or defense with respect to any of the foregoing.

         SECTION 13. REFERENCE TO AND EFFECT ON NOTE AGREEMENT. Upon the
effectiveness of this letter, each reference in the Note Agreement or any other
document, instrument or agreement to the "Note Agreement" shall mean and be a
reference to the Note Agreement as modified by

                                      -19-
<PAGE>

this letter. Except as specifically set forth in Section 1 hereof, the Note
Agreement shall remain in full force and effect and is hereby ratified and
confirmed in all respects.

         SECTION 14. EXPENSES. Without limiting the provisions of paragraph 11B
of the Note Agreement, the Company hereby confirms its obligations under the
Note Agreement, whether or not the transactions hereby contemplated are
consummated, to pay, promptly after request by Prudential, all reasonable
out-of-pocket costs and expenses (including attorneys' fees and expenses and the
fees and expenses of Nightingale & Associates, LLC) incurred by Prudential prior
to or after the date of this letter agreement in connection with the Note
Agreement, the Company and the Guarantors, this letter agreement or the
transactions contemplated thereby or hereby, in enforcing any rights under the
Note Agreement or this letter agreement, or in responding to any subpoena or
other legal process or informal investigative demand issued in connection with
the Note Agreement, this letter agreement or the transactions contemplated
thereby or hereby. The obligations of the Company under this Section 14 shall
survive transfer by Prudential of any Note and payment of any Note.

         SECTION 15. GOVERNING LAW. THIS LETTER SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO
PRINCIPLES OF CONFLICT OF LAWS OF SUCH STATE WHICH WOULD OTHERWISE CAUSE THIS
LETTER TO BE CONSTRUED OR ENFORCED OTHER THAN IN ACCORDANCE WITH THE LAWS OF THE
STATE OF ILLINOIS.

         SECTION 16. COUNTERPARTS; SECTION TITLES. This letter 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 to be
an original and all of which taken together shall constitute but one and the
same instrument. The section titles contained in this letter are and shall be
without substance, meaning or content of any kind whatsoever and are not a part
of the agreement between the parties hereto.

                                      -20-
<PAGE>

                                 Very truly yours,

                                 THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

                                 By:         /s/ Thomas Luther
                                    -----------------------------------------
                                                         Vice President

AGREED AND ACCEPTED:

CORRPRO COMPANIES, INC.

By:        /s/ Robert M. Sloan
   ------------------------------------
   Title:  Chief Financial Officer
         ------------------------------

<PAGE>

                                    EXHIBIT A

                    FORM OF SECOND AMENDED AND RESTATED NOTE

                                  See Attached

<PAGE>

                             CORRPRO COMPANIES, INC.

          SECOND AMENDED AND RESTATED SENIOR NOTE DUE JANUARY 15, 2008

No. 1998 A-3                                                 September 23, 2002
$28,285,714                                                   Chicago, Illinois

         FOR VALUE RECEIVED, the undersigned, CORRPRO COMPANIES, INC., (herein
called the "Company"), a corporation organized and existing under the laws of
the State of Ohio, hereby promises to pay to The Prudential Insurance Company of
America, or registered assigns, the principal sum of TWENTY EIGHT MILLION TWO
HUNDRED EIGHTY FIVE THOUSAND SEVEN HUNDRED FOURTEEN DOLLARS ($28,285,714) on
January 15, 2008, with interest (computed on the basis of a 360-day year--30-day
month) (a) on the unpaid balance thereof at a rate per annum equal to (i) 11.35%
until July 31, 2003, and (ii) 11.85% on and after July 31, 2003, from the date
hereof, payable on the 15th day of each month in each year, commencing on
October 15, 2002, until the principal hereof shall have become due and payable,
and (b) on any overdue payment (including any overdue prepayment) of principal,
any overdue payment of Yield-Maintenance Amount and any overdue payment of
interest, payable quarterly as aforesaid (or, at the option of the registered
holder hereof, on demand), at a rate per annum from time to time equal to the
greater of (i) 13.35% until July 31, 2003 and 13.85% on and after July 31, 2003,
or (ii) 2.00% over the rate of interest publicly announced by The Bank of New
York from time to time in New York City as its Prime Rate.

         Payments of principal, Yield-Maintenance Amount, if any, and interest
are to be made at the main office of Bank of New York in New York City or at
such other place as the holder hereof shall designate to the Company in writing,
in lawful money of the United States of America.

         This Note is issued pursuant to the Note Purchase Agreement, dated as
of January 21, 1998, as amended (herein called the "Agreement"), between the
Company, on the one hand, and The Prudential Insurance Company of America, on
the other hand, and is entitled to the benefits thereof. As provided in the
Agreement, this Note is subject to prepayment, in whole or from time to time in
part, in certain cases without Yield-Maintenance Amount and in other cases with
the Yield-Maintenance Amount specified in the Agreement.

         This Note is a registered Note and, as provided in the Agreement, upon
surrender of this Note for registration of transfer, duly endorsed, or
accompanied by a written instrument of transfer duly execute, by the registered
holder hereof or such holder's attorney duly authorized in writing, a new Note
for the then outstanding principal amount will be issued to, and registered in
the name of, the transferee. Prior to due presentment for registration of
transfer, the Company may treat the person in whose name this Note is registered
as the owner hereof for the purpose of receiving payment and for all other
purposes, and the Company shall not be affected by any notice to the contrary.

         In case an Event of Default shall occur and be continuing, the
principal of this Note may be declared or otherwise become due and payable in
the manner and with the effect provided in the Agreement.

<PAGE>

         Capitalized terms used and not otherwise defined herein shall have the
meanings (if any) provided in the Agreement.

         This Note is intended to be performed in the State of Illinois and
shall be construed and enforced in accordance with the internal law of such
State.

         This Note (i) merely re-evidences the indebtedness previously evidenced
by the Company's Amended and Restated Senior Note due January 15, 2008 dated
April 15, 2001 (the "Existing Note"), (ii) is given in exchange for, and not as
payment of, the Existing Note, and (iii) is in no way intended to constitute a
novation of the Existing Note.

                                  CORRPRO COMPANIES, INC.

                                  By:      /s/ Joseph W. Rog
                                           ----------------------------------
                                  Title:   President, CEO
                                           ----------------------------------

<PAGE>

                                    EXHIBIT B

                                 FORM OF CONSENT

                                  See Attached

<PAGE>

                              CONSENT OF GUARANTORS

         Each of the undersigned is a guarantor under a subsidiary guaranty (as
amended, the "GUARANTY"), dated as of June 9, 2000, made by each guarantor in
favor of each holder of any Notes (the "NOTEHOLDERS"), and as such hereby
consents to that certain letter dated September 23, 2002, by and between Corrpro
Companies, Inc. and The Prudential Insurance Company of America (the
"MODIFICATION") and the amendments, forbearance and agreements contained
therein, and agrees to all agreements of the Guarantors set forth therein, and
confirms and agrees that, notwithstanding the Modification and the effectiveness
of the amendments, forbearance and agreements contained therein, the Guaranty
is, and shall continue to be, in full force and effect and is hereby confirmed
and ratified in all respects. Nothing herein is intended or shall be deemed to
limit any Noteholder's rights under the Guaranty to take actions without the
consent of the undersigned.

Dated as of September 23, 2002

                                 GOOD-ALL ELECTRIC, INC.

                                 By:
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                 BASS SOFTWARE, INC.

                                 By:
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                 CATHODIC PROTECTION SERVICES COMPANY

                                 By:
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

<PAGE>

                                 OCEAN CITY RESEARCH CORP.

                                 By:      /s/ Joseph W. Rog
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                 CCFC, INC.

                                 By:      /s/ Joseph W. Rog
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

                                 ROHRBACK COSASCO SYSTEMS, INC.

                                 By:      /s/ Joseph W. Rog
                                     ----------------------------------------

                                 Title:   Vice President
                                        -------------------------------------

<PAGE>

                                    EXHIBIT C

                                 FORM OF WARRANT

                                  See Attached

<PAGE>

                                    EXHIBIT D

                      FORM OF REGISTRATION RIGHTS AGREEMENT

                                  See Attached

<PAGE>

                                     ANNEX I

                           EXISTING EVENTS OF DEFAULT

1.        Events of Default arising as a result of a breach of paragraph 1.3 of
          that certain Amendment to Note Agreement dated as of June 29, 2001 by
          an between the Company and Prudential (the "June 2001 Amendment") as a
          result of accounting irregularities at the Company's Australian
          subsidiary as of March 31, 2002 and for any period for which the
          Company's restated financial statements (which restatement was due to
          such accounting irregularities) would have caused the Company to be in
          violation of financial covenants then in effect,

2.       Events of Default arising as a result of a breach of paragraph 1.7 of
         the June 2001 Amendment as a result of the occurrence of the Events of
         Default set forth on this Annex I.

3.       Events of Default arising as a result of a breach of paragraph 5A of
         the Note Agreement as a result of failure to provide financial
         statements timely including for the periods ended March 31, 2002 and
         June 30, 2002.

4.       An Event of Default arising as a result of a breach of paragraph 5G of
         the Note Agreement as a result of securities law violations in
         connection with accounting irregularities at the Company's Australian
         subsidiary and the late filing of the Company's Form 10-K for the
         fiscal year ended March 31, 2002.

5.       Events of Default arising as a result of a breach of paragraph 6A(3)
         and paragraph 6A(4) of the Note Agreement as a result of failure to
         meet each of the financial covenants contained therein for the fiscal
         quarter ending March 31, 2001.

6.       Events of Default arising as a result of a breach of paragraph 6A of
         the Note Agreement as a result of failure to meet each of the financial
         covenants contained therein for any period ending March 31, 2002 and
         thereafter.

<PAGE>

                                 SCHEDULE 1.2(g)

                               PENDING PROCEEDINGS

                         [TO BE PROVIDED BY THE COMPANY]

<PAGE>

                                 SCHEDULE 1.2(k)

                                  EXISTING DEBT

                         [TO BE PROVIDED BY THE COMPANY]

                                 SCHEDULE 1.2(m)

                           TARGETED ASSET DISPOSITIONS

          NAME OF                                     NET CASH PROCEEDS OF
TARGETED ASSET DISPOSITIONS                        TARGETED ASSET DISPOSITIONS

                         [TO BE PROVIDED BY THE COMPANY]

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