Document:

<PAGE>

                                                                     EXHIBIT 4.1

                             FORM OF COMMON WARRANT

       THIS WARRANT AND THE SECURITIES TO BE ISSUED UPON EXERCISE
       HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
       1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS
       OF ANY STATE. NEITHER THIS WARRANT NOR ANY INTEREST HEREIN NOR
       THE SECURITIES ISSUABLE UPON EXERCISE HEREOF NOR ANY INTEREST
       THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED
       OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (I) AN EFFECTIVE
       REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY
       APPLICABLE STATE SECURITIES LAWS OR (II) AN EXEMPTION FROM THE
       REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY
       APPLICABLE STATE SECURITIES LAWS, SUCH EXEMPTION TO BE EVIDENCED
       BY SUCH DOCUMENTATION AS THE COMPANY MAY REASONABLY REQUEST.

Warrant to Purchase:
________ Shares of Common Stock

Dated: ________, 2004

                                     WARRANT

                      TO PURCHASE SHARES OF COMMON STOCK OF
                             EQUITY MARKETING, INC.

        THIS IS TO CERTIFY THAT Crown EMAK Partners, LLC, a Delaware limited
liability company (the "INVESTOR"), is entitled, at any time prior to ________,
2010 (the "EXPIRATION DATE"), to purchase from Equity Marketing, Inc., a
Delaware corporation (the "COMPANY"), ________ shares of the Company's Common
Stock, $0.001 par value per share (the "COMMON STOCK"), in whole or in part, at
a purchase price of $______ per share (the "EXERCISE PRICE"), all on the terms
and conditions and pursuant to the provisions hereinafter set forth. The
Exercise Price is subject to adjustment as provided herein.

        This Warrant is one of four warrants of like tenor originally issued by
the Company pursuant to the terms of a Warrant Exchange Agreement, dated March
19, 2004 (the "WARRANT EXCHANGE AGREEMENT"), between the Company and the Holder.

        1. Definitions.

        As used in this Warrant, the following terms have the respective
meanings set forth below:

        "BUSINESS DAY" means any day that is not a Saturday or Sunday or a day
on which banks are required or permitted to be closed in the State of New York.

                                      A-1
<PAGE>

        "CLOSING PRICE" means, for each Trading Day, the last reported sale
price on the Nasdaq National Market or, if the Common Stock is not quoted on the
Nasdaq National Market, the average of the closing bid and asked prices in the
over-the-counter market as furnished by any New York Stock Exchange member firm
selected from time to time by the Company for that purpose.

        "HOLDER" means Investor and any person or entity that acquires all or a
portion of this Warrant from Investor or its transferees.

        "TRADING DAY" means any day in which the Nasdaq National Market or other
applicable stock exchange or market is open for business.

        "TRADING PRICE" means the average of the Closing Prices of the Common
Stock for the 20 consecutive Trading Days ending on the day before the day in
question.

        "WARRANT PRICE" means an amount equal to (i) the number of shares of
Common Stock being purchased upon exercise of this Warrant pursuant to Section
2.1, multiplied by (ii) the Exercise Price.

        "WARRANT SHARES" means the shares of Common Stock purchased by the
Holder upon the exercise hereof.

        2. Exercise of Warrant.

               2.1. Manner of Exercise. At any time or from time to time from
and after the date hereof and until 5:00 P.M., New York time, on the Expiration
Date, Holder may exercise this Warrant, on any Business Day, for all or any part
of the number of shares of Common Stock purchasable hereunder.

               In order to exercise this Warrant, in whole or in part, Holder
shall deliver to the Company at its principal office at 6330 San Vicente
Boulevard, Los Angeles, California 90048 (i) a written notice of Holder's
election to exercise this Warrant, which notice shall specify the number of
shares of Common Stock to be purchased, (ii) payment of the Warrant Price in
immediately available funds (unless the Holder elects to exercise on a cashless
basis pursuant to Section 2.2 below) and (iii) this Warrant. Such notice shall
be substantially in the form appearing at the end of this Warrant as Exhibit A,
duly executed by Holder. Upon receipt of the items specified in the second
preceding sentence, the Company shall execute or cause to be executed and
deliver or cause to be delivered to Holder a certificate or certificates
representing the aggregate number of full shares of Common Stock issuable upon
such exercise, together with cash in lieu of any fraction of a share, as
hereinafter provided. The stock certificate or certificates so delivered shall
be in such denomination or denominations as Holder shall request in the notice
and shall be registered in the name of Holder. This Warrant shall be deemed to
have been exercised and such certificate or certificates shall be deemed to have
been issued, and Holder shall be deemed to have become a holder of record of
such shares for all purposes, as of the date the notice, together with the
Warrant Price and this Warrant, are received by the Company as described above.
If this Warrant shall have been exercised in part, the Company

                                      A-2
<PAGE>

shall, at the time of delivery of the certificate or certificates representing
Warrant Shares, deliver to Holder a new Warrant evidencing the right of Holder
to purchase the unpurchased shares of Common Stock called for by this Warrant,
which new Warrant shall in all other respects be identical with this Warrant,
or, at the request of Holder, appropriate notation may be made on this Warrant
and the same returned to Holder.

               2.2. Cashless Exercise. In lieu of exercising this Warrant in the
manner set forth in Section 2.1 above, this Warrant may be exercised by the
Holder, in whole at any time or in part from time to time prior to the
Expiration Date, by surrendering the Warrant at the address set forth above,
without payment of any other consideration, commission or remuneration, together
with the notice appearing at the end of this Warrant, duly executed. The number
of Warrant Shares to be issued by the Company shall be calculated using the
following formula:

                                    X= Y(A-B)
                                       ------
                                         A

        Where         X =        the number of Warrant Shares to be issued to
                                 the Holder

                      Y =        the number of Warrant Shares purchasable
                                 under this Warrant or, if this Warrant is being
                                 exercised in part, under the portion of the
                                 Warrant being exercised (at the date of the
                                 surrender of this Warrant and the notice form)

                      A =        the Trading Price (at the date of the surrender
                                 of this Warrant and the notice form)

                      B =        the Exercise Price (as adjusted to the date of
                                 the surrender of this Warrant and the
                                 subscription form)

               If this Warrant is exercised in part pursuant to this Section
2.2, this Warrant must be exercised for a number of whole shares of the Common
Stock, and the Holder is entitled to receive a new Warrant covering the shares
of Common Stock in respect of which this Warrant has not been exercised. Upon
such exercise and surrender of this Warrant, the Company will (i) issue a
certificate or certificates in the name of the Holder for the largest number of
whole shares of the Common Stock to which the Holder shall be entitled and, if
this Warrant is exercised in whole, in lieu of any fractional share of the
Common Stock to which the Holder shall be entitled, pay cash equal to the fair
value of such fractional share (determined in such reasonable manner as the
Board of Directors of the Company shall determine) and (ii) deliver the other
securities and properties receivable upon the exercise of this Warrant, or the
proportionate part thereof if this Warrant is exercised in part, pursuant to the
provisions of this Warrant.

               2.3. Shares to be Validly Issued. All shares of Common Stock
issuable upon the exercise of this Warrant shall be validly issued, fully paid
and nonassessable. The Company shall be entitled to withhold any amounts
required to be withheld under applicable law from any amounts to be paid to the
Holder hereunder.

               2.4. No Fractional Shares. The Company shall not be required to
issue fractions of shares upon the exercise of this Warrant, but in lieu of any
fractional share of the

                                      A-3
<PAGE>

Common Stock to which the Holder shall be entitled, shall pay cash equal to the
fair value of such fractional share (determined in such reasonable manner as the
Board of Directors of the Company shall determine).

        3. Adjustments.

               3.1. In case the Company shall (i) declare a dividend or make a
distribution on its Common Stock payable in shares of its capital stock, (ii)
subdivide its outstanding shares of Common Stock through stock split or
otherwise, or (iii) combine its outstanding shares of Common Stock into a
smaller number of shares of Common Stock, the number and/or nature of Warrant
Shares purchasable upon exercise of each Warrant immediately prior thereto shall
be adjusted so that the Holder shall be entitled to receive the kind and number
of Warrant Shares or other securities of the Company which it would have owned
or have been entitled to receive after the happening of any of the events
described above, had such Warrant been exercised immediately prior to the
happening of such event or any record date with respect thereto. An adjustment
made pursuant to this paragraph (a) shall become effective retroactively as of
the record date of such event.

               3.2. Merger, Consolidation or Disposition of Assets. In the case
of any capital reorganization or reclassification of the capital stock of the
Company or in the case of consolidation of the Company or the merger of the
Company with or into any other entity or the sale or transfer of all or
substantially all the assets of the Company pursuant to which the Common Stock
is converted into other securities, cash or assets, upon consummation of such
transaction, this Warrant shall automatically become exercisable for the kind
and amount of securities, cash or other assets receivable upon the
reorganization, reclassification, consolidation, merger, sale or transfer by a
holder of the number of shares of Common Stock into which this Warrant might
have been converted immediately prior to such consolidation, merger, transfer or
sale. Appropriate adjustment shall be made in the application of the provisions
herein set forth with respect to the rights and interests thereafter of the
Holder, to the end that the provisions set forth herein shall thereafter be
applicable, as nearly as reasonably may be, in relation to any shares of stock
or other securities or property thereafter deliverable upon the exercise of this
Warrant.

               3.3. Adjustments to Exercise Price. Whenever the number of shares
of Warrant Shares purchasable upon the exercise of each Warrant is adjusted, as
provided in this Section 3, the Exercise Price with respect to the Warrant
Shares shall be adjusted by multiplying such Exercise Price immediately prior to
such adjustment by a fraction, of which the numerator shall be the number of
shares of Common Stock purchasable upon the exercise of each Warrant immediately
prior to such adjustment, and of which the denominator shall be the number of
shares of Warrant Shares so purchasable immediately thereafter.

        4. No Impairment.

               The Company shall not by any action, including, without
limitation, amending its Certificate of Incorporation or comparable governing
instruments or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other

                                      A-4
<PAGE>

voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of Holder against impairment.
Without limiting the generality of the foregoing, the Company will (a) take all
such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable shares of Common Stock
upon the exercise of this Warrant and (b) obtain all such authorizations,
exemptions or consents from any public regulatory body having jurisdiction
thereof as may be necessary to enable the Company to perform its obligations
under this Warrant.

        5. Reservation and Authorization of Common Stock.

        From and after the date hereof, the Company shall at all times reserve
and keep available for issue upon the exercise of Warrants such number of its
authorized but unissued shares of Common Stock as will be sufficient to permit
the exercise in full of all outstanding Warrants. All shares of Common Stock
which shall be so issuable, when issued upon exercise of any Warrant and payment
therefor in accordance with the terms of such Warrant, shall be duly and validly
issued and fully paid and nonassessable, and not subject to preemptive rights.

        6. Transferability; Form of Warrants.

               6.1. Transfer. None of the Warrant nor the Warrant Shares
issuable upon exercise hereof nor any interest therein may be offered, sold,
transferred, pledged, hypothecated or otherwise disposed of, except pursuant to
(i) an effective registration statement under the Securities Act and any
applicable state securities laws or (ii) an exemption from the registration
requirements of the Securities Act and any applicable state securities laws,
such exemption to be evidenced by such documentation as the Company may
reasonably request, including an opinion of counsel, in writing and addressed to
the Company (which counsel and opinion shall be reasonably satisfactory to the
Company), that such transfer is not in violation of the Securities Act and any
applicable state laws. The Company shall treat the Holder as the holder and
owner hereof for all purposes, unless the Company has been given notice to the
contrary. Subject to compliance with the transfer restrictions set forth above,
upon the delivery to the Company at its principal corporate office of this
Warrant along with a duly completed Assignment Form substantially in the form of
Exhibit B hereto, the Company shall execute and deliver a new Warrant in the
form of this Warrant, but registered in the name of the transferee, to purchase
the Warrant Shares assigned to the transferee. In case the Holder shall assign
this Warrant with respect to less than all of the Warrant Shares, the Company
shall execute a new warrant in the form of this Warrant for the balance of the
Warrant Shares and deliver such new warrant to the transferring Holder.

               6.2. Warrant Register; Ownership of Warrant. The Company will
keep at its principal office a register in which the Company will provide for
the registration of Warrants and the registration of transfers of Warrants. The
Company may treat the person in whose name any Warrant is registered on such
register as the owner thereof for all other purposes, and the Company shall not
be affected by any notice to the contrary.

                                      A-5
<PAGE>

               6.3. Restrictive Legend. Each certificate for Warrant Shares
shall be stamped or otherwise imprinted with the following legend:

               THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE.
NEITHER THIS SECURITY NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, TRANSFERRED,
PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE
STATE SECURITIES LAWS OR (ii) AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, SUCH EXEMPTION TO
BE EVIDENCE BY SUCH DOCUMENTATION AS THE ISSUER MAY REASONABLY REQUEST.

               Any certificate issued at any time in exchange or substitution
for any certificate bearing such legend (except a new certificate issued upon
completion of a public distribution pursuant to a registration statement under
the Securities Act ) shall also bear such legend unless, the holder of such
certificate shall have delivered to the Company an opinion of counsel, in
writing and addressed to the Company (which counsel and opinion shall be
reasonably acceptable to the Company), that the securities represented thereby
need no longer be subject to restrictions on resale under the Securities Act or
any state securities laws.

               6.4. Registration Rights. The holder of Warrants and Warrant
Shares shall have the registration rights set forth in the Registration Rights
Agreement, dated as of March 29, 2000 between the Holder and the Company, as
amended by the Warrant Exchange Agreement.

        7. Loss or Mutilation. Upon receipt by the Company from any Holder of
evidence reasonably satisfactory to it of the ownership of and the loss, theft,
destruction or mutilation of this Warrant and indemnity reasonably satisfactory
to it, and in case of mutilation upon surrender and cancellation hereof, the
Company will execute and deliver in lieu hereof a new Warrant of like tenor to
such Holder; provided, in the case of mutilation, no indemnity shall be required
if this Warrant in identifiable form is surrendered to the Company for
cancellation.

        8. Miscellaneous.

               8.1. Expiration. This Warrant shall expire and be of no further
force and effect on the Expiration Date.

               8.2. Notice Generally. Any notice, demand, request, consent,
approval, declaration, delivery or other communication hereunder to be made
pursuant to the provisions of this Warrant shall be sufficiently given or made
if in writing and either delivered in person with receipt acknowledged or sent
by registered or certified mail, return receipt requested, postage prepaid or by
a nationally recognized overnight courier or by telecopy and confirmed by
telecopy answerback, addressed as follows:

                                      A-6
<PAGE>

                        (a) If to the Holder, at its last known address
appearing on the books of the Company maintained for such purpose:

               with a copy to:      Lerner & Squire, LLP
                                    500 Park Avenue, Suite 510
                                    New York, New York, 10022
                                    Attn: Kenneth B. Squire
                                    Facsimile: (212) 339-0054

                        (b) If to the Company at:

                                    6330 San Vicente Boulevard
                                    Los Angeles, California 90048
                                    Attn: Teresa L. Tormey, Esq.
                                      Sr. Vice President, General Counsel
                                      and Secretary
                                    Facsimile: (323) 930-8346

or at such other address as may be substituted by notice given as herein
provided. The giving of any notice required hereunder may be waived in writing
by the party entitled to receive such notice. Every notice, demand, request,
consent, approval, declaration, delivery or other communication hereunder shall
be deemed to have been duly given or served (i) on the date on which personally
delivered, with receipt acknowledged, (ii) on the date on which telecopied and
confirmed by written or telephonic acknowledgment, (iii) on the date set forth
on the executed return receipt in the case of registered or certified mail or
(iv) on the next business day after the same shall have been deposited for
overnight delivery with a nationally recognized overnight courier, provided that
proof of receipt is received. Failure or delay in delivering copies of any
notice, demand, request, approval, declaration, delivery or other communication
to the Person designated above to receive a copy shall in no way adversely
affect the effectiveness of such notice, demand, request, approval, declaration,
delivery or other communication.

               8.3. No Rights as Shareholders. This Warrant shall not entitle
the Holder to any rights as a stockholder of the Company.

               8.4. Successors and Assigns. Subject to the provisions of Section
3.2, this Warrant and the rights evidenced hereby shall inure to the benefit of
and be binding upon the successors of the Company.

               8.5. Amendment. This Warrant may be modified or amended or the
provisions hereof waived only with the written consent of the Company and the
Holder.

               8.6. Severability. Wherever possible, each provision of this
Warrant shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Warrant, provided that no such
severance shall

                                      A-7
<PAGE>

be effective if it would change the economic costs or benefits of this Warrant
to the Company or the Holder.

               8.7. Headings. The headings used in this Warrant are for the
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

               8.8. Governing Law. This Warrant shall be governed by the laws of
the State of Delaware, without regard to the provisions thereof relating to
conflict of laws.

        IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed as of the date set forth below.

        Dated: March 19, 2004

                                            EQUITY MARKETING, INC.

                                            By:
                                               ---------------------------------
                                               Donald A. Kurz, Chief Executive
                                               Officer

Acknowledged and Agreed:

CROWN EMAK PARTNERS, LLC

By:
   --------------------------------
   Jeffrey S. Deutschman, Manager

                                      A-8
<PAGE>

                                    EXHIBIT A

                                  EXERCISE FORM

        [To be executed only upon exercise of Warrant]

        The undersigned registered owner of this Warrant irrevocably exercises
this Warrant for the purchase of _____ Shares of Common Stock of Equity
Marketing, Inc. and herewith makes payment therefor, all at the price and on the
terms and conditions specified in this Warrant and requests that certificates
for the shares of Common Stock hereby purchased (and any securities or other
property issuable upon such exercise) be issued in the name of the undersigned,
if such shares of Common Stock shall not include all of the shares of Common
Stock issuable as provided in this Warrant, that a new Warrant of like tenor and
date for the balance of the shares of Common Stock issuable hereunder be
delivered to the undersigned.

        Check the following box in the case of a "cashless exercise" pursuant to
Section 2.2 [ ].

-----------------------------------
(Name of Registered Owner)

-----------------------------------
(Signature of Registered Owner)

-----------------------------------
(Street Address)

-----------------------------------
(City) (State) (Zip Code)

               NOTICE: The signature on this subscription must correspond with
the name as written upon the face of the within Warrant in every particular,
without alteration or enlargement or any change whatsoever.

<PAGE>

                                    EXHIBIT B

                                 ASSIGNMENT FORM

        [To be executed only upon transfer of Warrant]

For value received, the undersigned registered holder of the within Warrant
hereby sells, assigns and transfers unto ____________________ the right
represented by such Warrant to purchase __________________1 Warrant Shares and
appoints _________________ Attorney to make such transfer on the books of Equity
Marketing, Inc. maintained for such purpose, with full power of substitution in
the premises.

Dated:
                                      (Signature must conform in all respects to
                                      name of holder as specified on the face of
                                      Warrant)

                                      ------------------------------------------
                                                  (Street Address)

                                      ------------------------------------------
                                      (City)           (State)        (Zip Code)
Signed in the presence of:

----------------------------

----------------------------

--------
1   Insert here the number of Warrant Shares as to which this Warrant is being
    assigned. In the case of a partial assignment, a new Warrant or Warrants
    will be issued and delivered, representing the unassigned portion of the
    warrant, to the holder surrendering the Warrant.<PAGE>

                                                                    EXHIBIT 4(E)

                                                               EXECUTION VERSION

                                REVOLVING CREDIT

                                       AND

                               SECURITY AGREEMENT

                         PNC BANK, NATIONAL ASSOCIATION
              (AS LENDER, ADMINISTRATIVE AGENT AND LEAD ARRANGER);
                          KEYBANK NATIONAL ASSOCIATION
                     (AS LENDER AND SYNDICATION AGENT); AND
                         THE OTHER LENDERS PARTY HERETO

                                      WITH

                                  LESCO, INC.;
                              LESCO SERVICES, INC.;
                            LESCO TECHNOLOGIES, LLC;

                                       AND

                        AIM LAWN & GARDEN PRODUCTS, INC.;
                                   (BORROWERS)

                                December 30, 2003

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                Page
<S>                                                                                                             <C>
I.       DEFINITIONS.........................................................................................     1
                  1.1.     Accounting Terms..................................................................     1
                  1.2.     General Terms.....................................................................     1
                  1.3.     Uniform Commercial Code Terms.....................................................    17
                  1.4.     Certain Matters of Construction...................................................    17

II.      ADVANCES, PAYMENTS..................................................................................    18
                  2.2.     Procedure for Borrowing Advances..................................................    18
                  2.3.     Disbursement of Advance Proceeds..................................................    20
                  2.4.     [Intentionally Omitted.]..........................................................    21
                  2.5.     Maximum Advances..................................................................    21
                  2.6.     Repayment of Advances.............................................................    21
                  2.7      Repayment of Excess Advances......................................................    21
                  2.8      Statement of Account..............................................................    21
                  2.9.     Letters of Credit.................................................................    22
                  2.10     Issuance of Letters of Credit.....................................................    22
                  2.11     Requirements For Issuance of Letters of Credit....................................    23
                  2.12.    Additional Payments...............................................................    24
                  2.13.    Manner of Borrowing and Payment...................................................    24
                  2.14.    [Intentionally Omitted.]..........................................................    26
                  2.15.    Use of Proceeds...................................................................    26
                  2.16.    Defaulting Lender.................................................................    26

III.     INTEREST AND FEES...................................................................................    27
                  3.1.     Interest..........................................................................    27
                  3.2.     Letter of Credit Fees.............................................................    27
                  3.3.     Facility Fee......................................................................    28
                  3.4.     [Intentionally Omitted.]..........................................................    28
                  3.5.     Computation of Interest and Fees..................................................    28
                  3.6.     Maximum Charges...................................................................    29
                  3.7.     Increased Costs...................................................................    29
                  3.8.     Basis For Determining Interest Rate Inadequate or Unfair..........................    30
                  3.9.     Capital Adequacy..................................................................    30
                  3.10.    Gross Up for Taxes................................................................    31
                  3.11.    Withholding Tax Exemption.........................................................    31

IV.      COLLATERAL:  GENERAL TERMS..........................................................................    32
                  4.1.     Security Interest in the Collateral...............................................    32
                  4.2.     Perfection of Security Interest...................................................    32
                  4.3.     Disposition of Collateral.........................................................    33
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                              <C>
                  4.4.     Preservation of Collateral........................................................    33
                  4.5.     Ownership of Collateral...........................................................    33
                  4.6.     Defense of Agent's and Lenders' Interests.........................................    34
                  4.7.     Books and Records.................................................................    34
                  4.8.     Financial Disclosure..............................................................    34
                  4.9.     Compliance with Laws..............................................................    35
                  4.10.    Inspection of Premises............................................................    35
                  4.11.    Insurance.........................................................................    35
                  4.12.    Failure to Pay Insurance..........................................................    36
                  4.13.    Payment of Taxes..................................................................    36
                  4.14.    Payment of Leasehold Obligations..................................................    37
                  4.15.    Receivables.......................................................................    37
                           (a)      Nature of Receivables....................................................    37
                           (b)      Solvency of Customers....................................................    37
                           (c)      Locations of Borrower....................................................    37
                           (d)      Collection of Receivables................................................    38
                           (e)      Notification of Assignment of Receivables................................    38
                           (f)      Power of Agent to Act on Borrowers' Behalf...............................    38
                           (g)      No Liability.............................................................    39
                           (h)      Establishment of a Lockbox Account, Dominion Account.....................    39
                           (i)      Adjustments..............................................................    40
                  4.16.    Inventory.........................................................................    40
                  4.17.    Maintenance of Equipment..........................................................    40
                  4.18.    Exculpation of Liability..........................................................    40
                  4.19.    Environmental Matters.............................................................    40
                  4.20.    Financing Statements..............................................................    42

V.       REPRESENTATIONS AND WARRANTIES......................................................................    42
                  5.1.     Authority.........................................................................    43
                  5.2.     Formation and Qualification.......................................................    43
                  5.3.     Survival of Representations and Warranties........................................    43
                  5.4.     Tax Returns.......................................................................    43
                  5.5.     Financial Statements..............................................................    44
                  5.6.     Corporate Name....................................................................    45
                  5.7.     O.S.H.A. and Environmental Compliance.............................................    45
                  5.8.     Solvency; No Litigation, Violation, Indebtedness or Default.......................    45
                  5.9.     Patents, Trademarks, Copyrights and Licenses......................................    46
                  5.10.    Licenses and Permits..............................................................    47
                  5.11.    Default of Indebtedness...........................................................    47
                  5.12.    No Default........................................................................    47
                  5.13.    No Burdensome Restrictions........................................................    47
                  5.14.    No Labor Disputes.................................................................    47
                  5.15.    Margin Regulations................................................................    48
                  5.16.    Investment Company Act............................................................    48
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<S>                                                                                                              <C>
                  5.17.    Disclosure........................................................................    48
                  5.18.    [Intentionally Omitted.]..........................................................    48
                  5.19.    Swaps.............................................................................    48
                  5.20.    Conflicting Agreements............................................................    48
                  5.21.    Application of Certain Laws and Regulations.......................................    48
                  5.22.    Business and Property of Borrowers................................................    48
                  5.23.    Section 20 Subsidiaries...........................................................    48
                  5.24     Anti-Terrorism Laws...............................................................    49
                           (a)      General..................................................................    49
                           (b)      Executive Order No. 13224................................................    49

VI.      AFFIRMATIVE COVENANTS...............................................................................    50
                  6.1.     Payment of Fees...................................................................    50
                  6.2      Conduct of Business and Maintenance of Existence and Assets.......................    50
                  6.3.     Violations........................................................................    50
                  6.4.     Government Receivables............................................................    50
                  6.5.     [Intentionally Omitted.]..........................................................    50
                  6.6.     Fixed Charge Coverage Ratio.......................................................    50
                  6.7.     Additional Mortgage; Title Insurance..............................................    50
                  6.8.     Landlord's Waivers................................................................    51
                  6.9.     Execution of Supplemental Instruments.............................................    51
                  6.10.    Payment of Indebtedness, Including Taxes, Etc.....................................    51
                  6.11.    Standards of Financial Statements.................................................    51
                  6.12.    Inventory Appraisals..............................................................    52
                  6.13     Field Examinations................................................................    52
                  6.14     Anti-Terrorism Laws...............................................................    52
                  6.15     Tax Shelter Provisions............................................................    52

VII.     NEGATIVE COVENANTS..................................................................................    52
                  7.1.     Merger, Consolidation, Acquisition and Sale of Assets.............................    53
                  7.2.     Creation of Liens.................................................................    53
                  7.3.     Guarantees........................................................................    53
                  7.4.     Investments.......................................................................    53
                  7.5.     Loans.............................................................................    53
                  7.6.     [Intentionally Omitted.]..........................................................    53
                  7.7.     Dividends.........................................................................    53
                  7.8.     Indebtedness......................................................................    54
                  7.9.     Nature of Business................................................................    54
                  7.10.    Transactions with Affiliates......................................................    54
                  7.11.    Leases............................................................................    54
                  7.12.    Subsidiaries......................................................................    54
                  7.13.    Fiscal Year and Accounting Changes................................................    54
                  7.14.    Pledge of Credit..................................................................    54
                  7.15.    Amendment of Articles of Incorporation, By-Laws...................................    54
</TABLE>

                                     -iii-

<PAGE>

<TABLE>
<S>                                                                                                              <C>
                  7.16.    Compliance with ERISA.............................................................    55
                  7.17.    Prepayment of Indebtedness........................................................    55
                  7.18.    Other Agreements..................................................................    55

VIII.    CONDITIONS PRECEDENT................................................................................    55
                  8.1.     Conditions to Initial Advances....................................................    55
                           (a)      Note; Other Documents....................................................    55
                           (b)      Filings, Registrations and Recordings....................................    55
                           (c)      Corporate Proceedings of Borrowers.......................................    56
                           (d)      Incumbency Certificates of Borrowers.....................................    56
                           (e)      [Intentionally Omitted.].................................................    56
                           (f)      [Intentionally Omitted.].................................................    56
                           (g)      Certificates.............................................................    56
                           (h)      Good Standing Certificates...............................................    56
                           (i)      Legal Opinion............................................................    56
                           (j)      No Litigation............................................................    56
                           (k)      Financial Condition Certificates.........................................    57
                           (l)      Collateral Examination...................................................    57
                           (m)      Fees.....................................................................    57
                           (n)      Pro Forma Financial Statements...........................................    57
                           (o)      Payment of Existing Indebtedness.........................................    57
                           (p)      Accounts Sales Agreement.................................................    57
                           (q)      Insurance................................................................    57
                           (r)      Title Insurance..........................................................    57
                           (s)      Environmental Reports....................................................    57
                           (t)      Payment Instructions.....................................................    58
                           (u)      Projections..............................................................    58
                           (v)      Consents.................................................................    58
                           (w)      No Adverse Material Change...............................................    58
                           (x)      Leasehold Agreements.....................................................    58
                           (y)      Mortgage.................................................................    58
                           (z)      Contract Review..........................................................    58
                           (aa)     Closing Certificate......................................................    58
                           (bb)     Borrowing Base...........................................................    58
                           (cc)     Undrawn Availability.....................................................    58
                           (dd)     Other....................................................................    59
                  8.2.     Conditions to Each Advance........................................................    59
                           (a)      Representations and Warranties...........................................    59
                           (b)      No Default...............................................................    59
                           (c)      Maximum Advances.........................................................    59

IX.      INFORMATION AS TO BORROWER..........................................................................    59
                  9.1.     Disclosure of Material Matters....................................................    59
                  9.2.     Borrowing Base; Schedules.........................................................    59
</TABLE>

                                      -iv-

<PAGE>

<TABLE>
<S>                                                                                                              <C>
                  9.4.     Litigation........................................................................    60
                  9.5.     Material Occurrences..............................................................    60
                  9.6.     Government Receivables............................................................    60
                  9.7.     Annual Financial Statements.......................................................    60
                  9.8.     Quarterly Financial Statements....................................................    61
                  9.9.     Monthly Financial Statements......................................................    61
                  9.10.    Other Reports.....................................................................    62
                  9.11.    Additional Information............................................................    62
                  9.12.    Projected Operating Budget........................................................    62
                  9.13.    Variances From Operating Budget...................................................    62
                  9.14.    Notice of Suits, Adverse Events...................................................    62
                  9.15.    ERISA Notices and Requests........................................................    63
                  9.16.    Additional Documents..............................................................    63
                  9.17.    Tax Shelter Provisions............................................................    63

X.       EVENTS OF DEFAULT...................................................................................    64

XI.      LENDERS' RIGHTS AND REMEDIES AFTER DEFAULT..........................................................    66
                  11.1     Rights and Remedies...............................................................    66
                  11.2.    Agent's Discretion................................................................    67
                  11.3.    Setoff............................................................................    67
                  11.4.    Rights and Remedies not Exclusive.................................................    67
                  11.5.    Allocation of Payments After Event of Default.....................................    67

XII.     WAIVERS AND JUDICIAL PROCEEDINGS....................................................................    68
                  12.1.    Waiver of Notice..................................................................    68
                  12.2.    Delay.............................................................................    68
                  12.3.    Jury Waiver.......................................................................    68

XIII.    EFFECTIVE DATE AND TERMINATION......................................................................    69
                  13.1.    Term..............................................................................    69
                  13.2.    Termination.......................................................................    69

XIV.     REGARDING AGENT.....................................................................................    69
                  14.1.    Appointment, Intercreditor Agreement..............................................    69

14.2.    Nature of Duties....................................................................................    70
                  14.3.    Lack of Reliance on Agent and Resignation.........................................    70
                  14.5.    Certain Rights of Agent...........................................................    71
                  14.5.    Reliance..........................................................................    71
                  14.6.    Notice of Default.................................................................    71
                  14.7.    Indemnification...................................................................    71
                  14.8.    Agent in its Individual Capacity..................................................    72
</TABLE>

                                      -v-

<PAGE>

<TABLE>
<S>                                                                                                              <C>
                  14.9.    Delivery of Documents.............................................................    72
                  14.10.   Borrowers' Undertaking to Agent...................................................    72
                  14.11.   No Reliance on Agent's Customer Identification Program............................    72

XV.      BORROWING AGENCY....................................................................................    72
                  15.1.    Borrowing Agency Provisions.......................................................    72
                  15.2.    Waiver of Subrogation.............................................................    73

XVI.     MISCELLANEOUS.......................................................................................    73
                  16.1.    Governing Law.....................................................................    73
                  16.2.    Entire Understanding..............................................................    74
                  16.3.    Successors and Assigns; Participations; New Lenders...............................    76
                  16.4     Application of Payments, Overadvances for GE Capital Proceeds.....................    77
                  16.5.    Indemnity.........................................................................    78
                  16.6.    Notice............................................................................    78
                  16.7     Survival..........................................................................    80
                  16.8.    Severability......................................................................    81
                  16.9.    Expenses..........................................................................    81
                  16.10.   Injunctive Relief.................................................................    81
                  16.11.   Consequential Damages.............................................................    81
                  16.12.   Captions..........................................................................    81
                  16.13.   Counterparts; Telecopied Signatures...............................................    81
                  16.14.   Construction......................................................................    81
                  16.15    Confidentiality; Sharing Information..............................................    82
                  16.16.   PNC Consent.......................................................................    82
                  16.17.   Publicity.........................................................................    83
</TABLE>

                                      -vi-

<PAGE>

                                REVOLVING CREDIT

                                      AND

                               SECURITY AGREEMENT

         Revolving Credit and Security Agreement (this "Agreement") dated as of
December 30, 2003, among LESCO, INC., a corporation organized under the laws of
the State of Ohio ("LESCO"), LESCO SERVICES, INC., a corporation organized under
the laws of the State of Ohio ("LSI"), LESCO TECHNOLOGIES, LLC, a limited
liability company organized under the laws of the State of Nevada
("Technologies"), and AIM LAWN & GARDEN PRODUCTS, INC., a corporation organized
under the laws of the State of Ohio ("AIM"), each a "Borrower" and collectively
"Borrowers"), the financial institutions which are now or which hereafter become
a party hereto (collectively, the "Lenders" and individually a "Lender"),
KEYBANK NATIONAL ASSOCIATION, as syndication agent, and PNC BANK, NATIONAL
ASSOCIATION ("PNC"), as agent for Lenders (PNC, in such capacity, the "Agent").

         IN CONSIDERATION of the mutual covenants and undertakings herein
contained, Borrowers, Lenders and Agent hereby agree as follows:

I.       DEFINITIONS.

         1.1.     Accounting Terms. As used in this Agreement, the Note, or any
certificate, report or other document made or delivered pursuant to this
Agreement, accounting terms not defined in Section 1.2 or elsewhere in this
Agreement and accounting terms partly defined in Section 1.2 to the extent not
defined, shall have the respective meanings given to them under GAAP; provided,
however, whenever such accounting terms are used for the purposes of determining
compliance with financial covenants in this Agreement, such accounting terms
shall be defined in accordance with GAAP as applied in preparation of the
audited financial statements of Borrowers for the fiscal year ended December 31,
2002.

         1.2.     General Terms. For purposes of this Agreement the following
terms shall have the following meanings:

                  "Accountants" shall have the meaning set forth in Section 9.7
hereof.

                  "Accounts Sales Agreement" shall mean that certain Portfolio
Purchase and Sale Agreement dated as of December 16, 2003 by and among Borrowers
and GE Capital pursuant to which GE Capital is purchasing certain Receivables of
LESCO.

                  "ACH Transactions" shall mean any cash management or related
services including the automated clearing house transfer of funds by the Agent
for the account of any Borrower pursuant to agreement or overdrafts.

                  "Advances" shall mean and include the Revolving Advances and
Letters of Credit and GE Proceeds Advances.

                  "Affiliate" of any Person shall mean (a) any Person which,
directly or indirectly, is in control of, is controlled by, or is under common
control with such Person, or (b) any Person

<PAGE>

who is a director or officer (i) of such Person, (ii) of any Subsidiary
of such Person or (iii) of any Person described in clause (a) above. For
purposes of this definition, control of a Person shall mean the power, direct or
indirect, (x) to vote 5% or more of the securities having ordinary voting power
for the election of directors of such Person, or (y) to direct or cause the
direction of the management and policies of such Person whether by contract or
otherwise.

                  "Agent" shall have the meaning set forth in the preamble to
this Agreement and shall include its successors and assigns.

                  "Alternate Base Rate" shall mean, for any day, a rate per
annum equal to the higher of (i) the Base Rate in effect on such day and (ii)
the Federal Funds Open Rate in effect on such day plus 1/2 of 1%.

                  "Anti-Terrorism Laws" shall mean any Applicable Law relating
to terrorism or money laundering, including Executive Order No. 13224, the USA
Patriot Act, the Laws comprising or implementing the Bank Secrecy Act, and the
Laws administered by the United States Treasury Department's Office of Foreign
Asset Control (as any of the foregoing Laws may from time to time be amended,
renewed, extended, or replaced).

                  "Applicable Law" shall mean all laws, rules and regulations
applicable to the person, conduct, transaction, covenant, Other Document or
contract in question, including all applicable common law and equitable
principles; all provisions of all applicable state, federal and foreign
constitutions, statutes, rules, regulations and orders of any Governmental Body,
and all orders, judgments and decrees of all courts and arbitrators.

                  "Applicable Margin" shall mean, as applicable:

                  (A)      the percentage spread to be added to the Alternate
Base Rate at the indicated level of Fixed Charge Coverage Ratio in the pricing
grid on Schedule 1.2(a) below the heading "Alternate Base Rate Spread," or

                  (B)      the percentage spread to be added to the Eurodollar
Rate at the indicated level of Fixed Charge Coverage Ratio in the pricing grid
on Schedule 1.2(a) below the heading "Eurodollar Rate Spread."

                  The Applicable Margin shall be computed in accordance with the
parameters set forth on Schedule 1.2(a).

                  "Authority" shall have the meaning set forth in Section
4.19(d).

                  "Bank Products" shall mean any one or more of the following
types of services or facilities extended to any Borrower by the Agent or any
Lender, or any Affiliate of the Agent or any Lender in reliance on the Agent's
or such Lender's agreement, respectively, to indemnify such Affiliate: (a)
credit cards, (b) ACH Transactions, (c) Interest Rate Protection Agreements, and
(d) foreign exchange contracts.

                  "Bank Products Reserves" shall mean all reserves which the
Agent from time to time establishes in its sole discretion for the Bank Products
then provided or outstanding.

                                      -2-
<PAGE>

                  "Base Rate" shall mean the base commercial lending rate of PNC
as publicly announced to be in effect from time to time, such rate to be
adjusted automatically, without notice, on the effective date of any change in
such rate. This rate of interest is determined from time to time by PNC as a
means of pricing some loans to its customers and is neither tied to any external
rate of interest or index nor does it necessarily reflect the lowest rate of
interest actually charged by PNC to any particular class or category of
customers of PNC.

                  "Blocked Accounts" shall have the meaning set forth in Section
4.15(h).

                  "Blocked Person" shall have the meaning assigned to such term
in Section 5.24.

                  "Borrower" or "Borrowers" shall have the meaning set forth in
the preamble to this Agreement and shall extend to all permitted successors and
assigns of such Persons.

                  "Borrowing Base Certificate" shall mean a certificate duly
executed by an officer of Borrowing Agent appropriately completed and in
substantially the form of Exhibit A hereto.

                  "Borrowers on a consolidated basis" shall mean LESCO, LSI,
Technologies, and AIM.

                  "Borrowers' Account" shall have the meaning set forth in
Section 2.8.

                  "Borrowing Agent" shall mean LESCO.

                  "Business Day" shall mean any day other than Saturday or
Sunday or a legal holiday on which commercial banks are authorized or required
by law to be closed for business in East Brunswick, New Jersey and, if the
applicable Business Day relates to any Eurodollar Rate Loans, such day must also
be a day on which dealings are carried on in the London interbank market.

                  "CERCLA" shall mean the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sections 9601 et
seq.

                  "Certificates of Deposit" shall mean the following
certificates of deposit issued by PNC to LESCO, and any extensions, renewals or
replacements thereof: (a) Certificate No. 31700218617 purchased September 14,
2001, in the amount of $472,500, and (b) Certificate No. 31300222218 purchased
December 10, 2001, in the amount of $472,500.

                  "Change of Control" shall mean (a) the occurrence of any event
(whether in one or more transactions) which results in a transfer of control of
any Borrower to a Person who is not an Original Owner or (b) any merger or
consolidation of or with any Borrower or sale of all or substantially all of the
property or assets of any Borrower. For purposes of this definition, "control of
Borrower" shall mean the power, direct or indirect (x) to vote 50% or more of
the securities having ordinary voting power for the election of directors of any
Borrower or (y) to direct or cause the direction of the management and policies
of any Borrower by contract or otherwise.

                                      -3-
<PAGE>

                  "Change of Ownership" shall mean (a) 50% or more of the common
stock or other ownership interests of any Borrower is no longer owned or
controlled by (including for the purposes of the calculation of percentage
ownership, any shares of common stock or other ownership interests into which
any capital stock or other ownership interests of any Borrower held by any of
the Original Owners is convertible or for which any such shares of the capital
stock or other ownership interests of any Borrower or of any other Person may be
exchanged and any shares of common stock or other ownership interests issuable
to such Original Owners upon exercise of any warrants, options or similar rights
which may at the time of calculation be held by such Original Owners) a Person
who is an Original Owner or (b) any merger, consolidation or sale of
substantially all of the property or assets of any Borrower.

                  "Charges" shall mean all taxes, charges, fees, imposts, levies
or other assessments, including, without limitation, all net income, gross
income, gross receipts, sales, use, ad valorem, value added, transfer,
franchise, profits, inventory, capital stock, license, withholding, payroll,
employment, social security, unemployment, excise, severance, stamp, occupation
and property taxes, custom duties, fees, assessments, liens, claims and charges
of any kind whatsoever, together with any interest and any penalties, additions
to tax or additional amounts, imposed by any taxing or other authority, domestic
or foreign (including, without limitation, the Pension Benefit Guaranty
Corporation or any environmental agency or superfund), upon the Collateral, or
any of the Borrowers.

                  "Closing Date" shall mean December 30, 2003 or such other date
as may be agreed to by the parties hereto.

                  "Code" shall mean the Internal Revenue Code of 1986, as
amended from time to time and the regulations promulgated thereunder.

                  "Collateral" shall mean and include:

                  (a)      all Receivables;

                  (b)      all Equipment;

                  (c)      all General Intangibles;

                  (d)      all Inventory;

                  (e)      all Investment Property;

                  (f)      all Real Property subject to the Mortgages;

                  (g)      the Leasehold Interests;

                  (h)      all of each Borrower's right, title and interest in
and to (i) its respective goods and other property including, but not limited
to, all merchandise returned or rejected by Customers, relating to or securing
any of the Receivables; (ii) all of each Borrower's rights as a consignor, a
consignee, an unpaid vendor, mechanic, artisan, or other lienor, including
stoppage in transit, setoff, detinue, replevin, reclamation and repurchase;
(iii) all additional amounts due to

                                      -4-
<PAGE>

any Borrower from any Customer relating to the Receivables; (iv) other property,
including warranty claims, relating to any goods securing this Agreement; (v)
all of each Borrower's contract rights, rights of payment which have been earned
under a contract right, instruments (including promissory notes), documents,
chattel paper (including electronic chattel paper), warehouse receipts, deposit
accounts, letters of credit, the Certificates of Deposit and money; (vi) all
commercial tort claims (whether now existing or hereafter arising); (vii) if and
when obtained by any Borrower, all real and personal property of third parties
in which such Borrower has been granted a lien or security interest as security
for the payment or enforcement of Receivables; and (viii) any other goods,
personal property or real property now owned or hereafter acquired in which any
Borrower has expressly granted a security interest or may in the future grant a
security interest to Agent hereunder, or in any amendment or supplement hereto
or thereto, or under any other agreement between Agent and any Borrower;

                  (i)      all of each Borrower's ledger sheets, ledger cards,
files, correspondence, records, books of account, business papers, computers,
computer software (owned by any Borrower or in which it has an interest),
computer programs, tapes, disks and documents relating to (a), (b), (c), (d),
(e), (f), (g) or (h) of this Paragraph; and

                  (j)      all proceeds and products of (a), (b), (c), (d), (e),
(f), (g), (h) and (i) in whatever form, including, but not limited to: cash,
deposit accounts (whether or not comprised solely of proceeds), certificates of
deposit, insurance proceeds (including hazard, flood and credit insurance),
negotiable instruments and other instruments for the payment of money, chattel
paper, security agreements, documents, eminent domain proceeds, condemnation
proceeds and tort claim proceeds.

                  "Commitment Percentage" of any Lender shall mean the
percentage set forth below such Lender's name on the signature page hereof as
same may be adjusted upon any assignment by a Lender pursuant to Section 16.3(b)
hereof.

                  "Commitment Transfer Supplement" shall mean a document in the
form of Exhibit 16.3 hereto, properly completed and otherwise in form and
substance satisfactory to Agent by which the Purchasing Lender purchases and
assumes a portion of the obligation of Lenders to make Advances under this
Agreement.

                  "Consents" shall mean all filings and all licenses, permits,
consents, approvals, authorizations, qualifications and orders of governmental
authorities and other third parties, domestic or foreign, necessary to carry on
any Borrower's business, including, without limitation, any Consents required
under all applicable federal, state or other applicable law.

                  "Controlled Group" shall mean all members of a controlled
group of corporations and all trades or businesses (whether or not incorporated)
under common control which, together with any Borrower, are treated as a single
employer under Section 414 of the Code.

                  "Customer" shall mean and include the account debtor with
respect to any Receivable and/or the prospective purchaser of goods, services or
both with respect to any contract or contract right, and/or any party who enters
into or proposes to enter into any contract

                                      -5-
<PAGE>

or other arrangement with any Borrower, pursuant to which such Borrower is to
deliver any personal property or perform any services.

                  "Customs" shall have the meaning set forth in Section 2.11(c)
hereof.

                  "Default" shall mean an event which, with the giving of notice
or passage of time or both, would constitute an Event of Default.

                  "Default Rate" shall have the meaning set forth in Section 3.1
hereof.

                  "Defaulting Lender" shall have the meaning set forth in
Section 2.16(a) hereof.

                  "Depository Accounts" shall have the meaning set forth in
Section 4.15(h) hereof.

                  "Disputanta Sales Agreement" shall mean that certain Asset
Purchase Agreement dated October 24, 2002, between the Disputanta Purchaser as
purchaser and LESCO as seller.

                  "Disputanta Note" shall mean that certain promissory note
dated November 4, 2002, made by the Disputanta Purchaser in favor of LESCO in
the stated principal amount of $1,850,000.

                  "Disputanta Purchaser" shall mean KPAC Holdings, Inc., a
Virginia corporation.

                  "Documents" shall have the meaning set forth in Section 8.1(c)
hereof.

                  "Dollar" and the sign "$" shall mean lawful money of the
United States of America.

                  "Domestic Rate Loan" shall mean any Advance that bears
interest based upon the Alternate Base Rate.

                  "Earnings Before Interest and Taxes" shall mean for any period
the sum of (i) net income (or loss) of Borrowers on a consolidated basis for
such period, plus (ii) all interest expense of Borrowers on a consolidated basis
for such period, plus (iii) all charges against income of Borrowers on a
consolidated basis for such period for federal, state and local taxes.

                  "EBITDA" shall mean for any period the sum of (i) Earnings
Before Interest and Taxes for such period plus (ii) depreciation expenses for
such period, plus (iii) amortization expenses for such period; provided however,
the effect of the following items shall be excluded from the calculation of
EBITDA to the extent that such items are included in EBITDA in the first
instance: (a) expenses of terminating or hedging any Interest Rate Protection
Agreement entered into pursuant to the Existing Loan Agreement, (b) acceleration
of expenses in connection with the Borrowers' restructuring effected in January,
2002, (c) nonrecurring fees charged by the Agent and the Lenders under this
Agreement, or (d) fees payable to GE Capital under the Accounts Sales Agreement
and/or the GE Program Agreement which are payable on the Closing Date and
charges taken by the Borrowers with respect to the accounts sold by the
Borrowers to GE Capital, the foregoing not in excess of $5,000,000 in the
aggregate. To the extent that (A) Borrowers establish bad debt reserves for
their accounts and such reserves are later reversed, and

                                      -6-
<PAGE>

(B) the Borrowers reverse charges taken with respect to the Account Sales
Agreement and/or the GE Program Agreement, then the amount of such reserves and
charges which are reversed shall be subtracted from EBITDA.

                  "Eligible Inventory" shall mean and include Inventory
excluding work in process, with respect to each Borrower valued at the lower of
cost (average cost method) or market value, which is not, in Agent's reasonable
opinion, obsolete, slow moving or unmerchantable and which Agent, in its sole
reasonable discretion, shall not deem ineligible Inventory, based on such
considerations as Agent may from time to time deem appropriate including,
without limitation, whether the Inventory is subject to a perfected, first
priority security interest in favor of Agent and whether the Inventory conforms
to all standards imposed by any governmental agency, division or department
thereof which has regulatory authority over such goods or the use or sale
thereof. Any Inventory located on a leased premises for which the Agent has not
received a satisfactory landlord's or warehouseman's agreement within ninety
(90) days after the Closing Date shall be excluded from Eligible Inventory
unless such Inventory is subject to a reserve in an amount established by the
Agent in it sole reasonable discretion (but in the case of leased premises, in
no event more than three months of rental payments for such premises) . Eligible
Inventory shall exclude all Inventory in-transit; provided however, (i)
Stores-on-Wheels Inventory which meets the other criteria set forth above and
for which title has passed to a Borrower and which is insured to the full value
thereof shall be included in Eligible Inventory, and (ii) Inventory in transit
by common carrier from one of the Borrowers' locations set forth on Schedule 4.5
to another of the Borrower's locations set forth on Schedule 4.5 and which is
insured to the full value thereof shall be included in Eligible Inventory,
subject to applicable reserves established by the Agent with respect to unpaid
freight charges related to such in-transit Inventory.

                  "Environmental Complaint" shall have the meaning set forth in
Section 4.19(d) hereof.

                  "Environmental Laws" shall mean all federal, state and local
environmental, land use, zoning, health, chemical use, safety and sanitation
laws, statutes, ordinances and codes relating to the protection of the
environment and/or governing the use, storage, treatment, generation,
transportation, processing, handling, production or disposal of Hazardous
Substances and the rules, regulations, policies, published guidelines, written
interpretations, decisions, orders and directives of federal, state and local
governmental agencies and authorities with respect thereto.

                  "Equipment" shall mean and include as to each Borrower all of
such Borrower's goods (other than Inventory) whether now owned or hereafter
acquired and wherever located including, without limitation, all equipment,
machinery, apparatus, motor vehicles, fittings, furniture, furnishings,
fixtures, parts, accessories and all replacements and substitutions therefor or
accessions thereto.

                  "ERISA" shall mean the Employee Retirement Income Security Act
of 1974, as amended from time to time and the rules and regulations promulgated
thereunder.

                                      -7-
<PAGE>

                  "Eurodollar Rate" shall mean for any Eurodollar Rate Loan for
the then current Interest Period relating thereto the interest rate per annum
determined by PNC by dividing (the resulting quotient rounded upwards, if
necessary, to the nearest 1/100th of 1% per annum) (a) the rate of interest
determined by PNC in accordance with its usual procedures (which determination
shall be conclusive absent manifest error) to be the average of the London
interbank offered rates for U.S. Dollars quoted by the British Bankers'
Association as set forth on Moneyline Telerate (or appropriate successor or, if
British Banker's Association or its successor ceases to provide such quotes, a
comparable replacement determined by Agent) display page 3750 (or such other
display page on Moneyline Telerate Service as may replace display page 3750) two
(2) Business Days prior to the first day of such Interest Period for an amount
comparable to such Eurodollar Rate Loan and having a borrowing date and a
maturity comparable to such Interest Period by (b) a number equal to 1.00 minus
the Reserve Percentage. The Eurodollar Rate may also be expressed by the
following formula:

<TABLE>
<S>                                                                            <C>
         Average of London interbank offered rates quoted by BBA as shown on
Eurodollar Rate =Moneyline Telerate display page 3750 or appropriate successor / 1.00 - Reserve Percentage
</TABLE>

                  "Eurodollar Rate Loan" shall mean an Advance at any time that
bears interest based on the Eurodollar Rate.

                  "Event of Default" shall mean the occurrence of any of the
events set forth in Article X hereof.

                  "Executive Order No. 13224" shall mean the Executive Order No.
13224 on Terrorist Financing, effective September 24, 2001, as the same has
been, or shall hereafter be, renewed, extended, amended or replaced.

                  "Existing Loan Agreement" shall mean that certain Revolving
Credit, Term Loan and Security Agreement dated January 14, 2002, as amended,
among the Borrowers, PNC Bank, National Association, as administrative agent,
and the other lenders for which PNC Bank serves as administrative agent.

                  "Federal Funds Effective Rate" for any day shall mean the rate
per annum (based on a year of 360 days and actual days elapsed and rounded
upward to the nearest 1/100 of 1%) announced by the Federal Reserve Bank of New
York (or any successor) on such day as being the weighted average of the rates
on overnight federal funds transactions arranged by federal funds brokers on the
previous trading day, as computed and announced by such Federal Reserve Bank (or
any successor) in substantially the same manner as such Federal Reserve Bank
computes and announces the weighted average it refers to as the "Federal Funds
Effective Rate" as of the date of this Agreement; provided, if such Federal
Reserve Bank (or its successor) does not announce such rate on any day, the
"Federal Funds Effective Rate" for such day shall be the Federal Funds Effective
Rate for the last day on which such rate was announced.

                  "Federal Funds Open Rate" shall mean the rate per annum
determined by the Agent in accordance with its usual procedures (which
determination shall be conclusive absent manifest error) to be the open rate for
federal funds transactions as of the opening of business for federal funds
transactions among members of the Federal Reserve System arranged by federal

                                      -8-
<PAGE>

funds brokers on such day, as quoted by Garvin Guybutler, any successor entity
thereto, or any other broker selected by the Bank, as set forth on the
applicable Telerate display page; provided, however; that if such day is not a
Business Day, the Federal Funds Open Rate for such day shall be the Open Rate on
the immediately preceding Business Day, or if no such rate shall be quoted by a
Federal funds broker at such time, such other rate as determined by the Agent in
accordance with its usual procedures.

                  "Fee Letter" shall mean the fee letter dated December 30,
2003, among Borrowers and PNC.

                  "Fixed Charge Coverage Ratio" shall mean and include, with
respect to any fiscal period, the ratio of (a) EBITDA minus Non-Financed Capital
Expenditures, minus income taxes expensed on a consolidated basis (but excluding
any non-recurring tax adjustments related to any of the exclusions set forth in
items (a), (b) or (c) in the definition of "EBITDA" herein), minus cash
dividends on and redemptions of capital stock from and after the Closing Date
(other than redemptions of or with respect to shares of LESCO's Series B
preferred stock which occur prior to March 31, 2004), all the foregoing during
such period to (b) Fixed Charges during such period.

                  "Fixed Charges" shall mean the sum of consolidated interest
expense of the Borrowers on a consolidated basis, Senior Debt Payments,
principal on other Indebtedness for borrowed money, and payments under
capitalized leases, the foregoing all as determined in conformity with GAAP.

                  "Formula Amount" shall have the meaning set forth in Section
2.1(a).

                  "GAAP" shall mean generally accepted accounting principles in
the United States of America in effect from time to time.

                  "GE Capital" shall mean GE Capital Financial Inc., a Utah
industrial loan corporation.

                  "GE Capital Proceeds" shall mean proceeds of any of the
Borrowers' accounts receivable purchased by GE Capital pursuant to the Account
Sales Agreement or payments due under the GE Program Agreement from customers of
any of the Borrowers.

                  "GE Proceeds Advance" shall have the meaning set forth in
Section 16.4(b).

                  "General Intangibles" shall mean and include as to each
Borrower all of such Borrower's general intangibles, whether now owned or
hereafter acquired including, without limitation, all payment intangibles,
choses in action, causes of action, corporate or other business records,
inventions, designs, patents, patent applications, equipment formulations,
manufacturing procedures, quality control procedures, trademarks, service marks,
trade secrets, goodwill, copyrights, design rights, software, computer
information, source codes, codes, records and dates, registrations, licenses,
franchises, customer lists, tax refunds, tax refund claims, computer programs,
all claims under guaranties, security interests or other security held by or
granted to such Borrower to secure payment of any of the Receivables by a
Customer (other than to the

                                      -9-
<PAGE>

extent covered by Receivables) all rights of indemnification and all other
intangible property of every kind and nature (other than Receivables).

                  "GE Program Agreement" shall mean that certain Private Label
Business Credit Program Agreement dated as of December 16, 2003 by and among
Borrowers and GE Capital.

                  "Governmental Body" shall mean any nation or government, any
state or other political subdivision thereof or any entity exercising the
legislative, judicial, regulatory or administrative functions of or pertaining
to a government.

                  "Hazardous Discharge" shall have the meaning set forth in
Section 4.19(d) hereof.

                  "Hazardous Substance" shall mean, without limitation, any
flammable explosives, radon, radioactive materials, asbestos, urea formaldehyde
foam insulation, polychlorinated biphenyls, petroleum and petroleum products,
methane, hazardous materials, Hazardous Wastes, hazardous or Toxic Substances or
related materials as defined in CERCLA, the Hazardous Materials Transportation
Act, as amended (49 U.S.C. Sections 1801, et seq.), RCRA, or any other
applicable Environmental Law and in the regulations adopted pursuant thereto.

                  "Hazardous Wastes" shall mean all wastes subject to regulation
under CERCLA, RCRA or applicable state law, and any other applicable Federal and
state laws now in force or hereafter enacted relating to hazardous waste
disposal.

                  "Indebtedness" of a Person at a particular date shall mean all
obligations of such Person which in accordance with GAAP would be classified
upon a balance sheet as liabilities (except capital stock and surplus earned or
otherwise) and in any event, without limitation by reason of enumeration, shall
include all indebtedness, debt and other similar monetary obligations of such
Person whether direct or guaranteed, and all premiums, if any, due at the
required prepayment dates of such indebtedness, and all indebtedness secured by
a Lien on assets owned by such Person, whether or not such indebtedness actually
shall have been created, assumed or incurred by such Person. Any indebtedness of
such Person resulting from the acquisition by such Person of any assets subject
to any Lien shall be deemed, for the purposes hereof, to be the equivalent of
the creation, assumption and incurring of the indebtedness secured thereby,
whether or not actually so created, assumed or incurred.

                  "Industrial Revenue Bonds" shall mean the Industrial Revenue
Bonds (LESCO, Inc. Project) issued by the County of Belmont, Ohio in a principal
amount of $5,875,000 and supported by, inter alia, the IRB Letter of Credit.

                  "IRB Letter of Credit" shall mean that certain Letter of
Credit No. A-304726 dated March 1, 1993, as amended by that Irrevocable Letter
of Credit No. S304726PGH dated October 23, 1998, and as further amended, issued
by PNC Bank, National Association in favor of The Bank of New York, successor to
Irving Trust Company, in its capacity as Trustee under the Indenture of Trust
dated as of January 1, 1988, between the Trustee and the County of Belmont,
Ohio, for the account of LESCO, Inc. in the face amount of $6,230,720.

                  "IRB Mortgage" shall mean that certain Open-End Shared
Mortgage and Security Agreement, dated as of January 1, 1988, from LESCO, Inc.
(as the Mortgagor) to the Director of

                                      -10-
<PAGE>

Development of the State of Ohio and Irving Trust Company (in its capacity as
Trustee under the Indenture of Trust dated as of January 1, 1988) and Irving
Trust Company (as Issuer of a Letter of Credit), recorded on January 28, 1988 in
Mortgage Volume 548, Page 139 of the Belmont County, Ohio, Records.

                  "IRB Mortgage Assignment" shall mean that certain First
Amendment to and Assignment of Open-End Shared Mortgage and Security Agreement
dated January 13, 1993 by and among LESCO, Inc. (as the Mortgagor), the Director
of Development of the State of Ohio, The Bank of New York, successor to Irving
Trust Company (in its capacity as Trustee under the Indenture of Trust dated as
of January 1, 1988) and Pittsburgh National Bank recorded on February 13, 1993
in Mortgage Volume 598, Page 98 of the Belmont County, Ohio, Records.

                  "Ineligible Security" shall mean any security which may not be
underwritten or dealt in by member banks of the Federal Reserve System under
Section 16 of the Banking Act of 1933 (12 U.S.C. Section 24, Seventh), as
amended.

                  "Intercreditor Agreement" shall mean that certain
Intercreditor Agreement between GE Capital and the Agent with respect to (i) the
rights of GE Capital in the Receivables and related property sold by LESCO to GE
Capital under the Accounts Sales Agreement and in payments due under the GE
Program Agreement from customers of any of the Borrowers, and (ii) the rights of
the Agent, for the benefit of the Lenders, in the Collateral, together with that
certain Consent and Agreement executed by each Borrower for the benefit of the
Agent and GE Capital, all in substantially the form of Exhibit 14.1.

                  "Interest Period" shall mean the period provided for any
Eurodollar Rate Loan pursuant to Section 2.2(b).

                  "Interest Rate Protection Agreements" shall mean documentation
for interest rate swaps in a standard International Swap Dealer Association
Agreement or such other form as is acceptable to the Agent which provide for the
method of calculating the reimbursable amount of the provider's credit exposure
in a reasonable and customary basis.

                  "Inventory" shall mean and include as to each Borrower all of
such Borrower's now owned or hereafter acquired goods, merchandise and other
personal property, wherever located, to be furnished under any consignment
arrangement, contract of service or held for sale or lease, all raw materials,
work in process, finished goods and materials and supplies of any kind, nature
or description which are or might be used or consumed in such Borrower's
business or used in selling or furnishing such goods, merchandise and other
personal property, and all documents of title or other documents representing
them.

                  "Inventory Advance Rates" shall have the meaning set forth in
Section 2.1(a)(y)(i) hereof.

                  "Investment Property" shall mean and include as to each
Borrower, all of such Borrower's now owned or hereafter acquired securities
(whether certificated or uncertificated), securities entitlements, securities
accounts, commodities contracts and commodities accounts.

                                      -11-
<PAGE>

                  "Issuer" shall mean any Person who issues a Letter of Credit
and/or accepts a draft pursuant to the terms hereof.

                  "Leasehold Interests" shall mean all of each Borrower's right,
title and interest in and to the leasehold interests under ground leases
identified on Schedule 4.19 hereto.

                  "Lender" and "Lenders" shall have the meaning ascribed to such
term in the preamble to this Agreement and shall include each Person which
becomes a transferee, successor or assign of any Lender.

                  "Letter of Credit Fees" shall have the meaning set forth in
Section 3.2.

                  "Letters of Credit" shall have the meaning set forth in
Section 2.9.

                  "LFI" shall mean LESCO Funding, Inc., a Delaware corporation
and a wholly-owned subsidiary of LESCO.

                  "Lien" shall mean any mortgage, deed of trust, pledge,
hypothecation, assignment, security interest, lien (whether statutory or
otherwise), Charge, claim or encumbrance, or preference, priority or other
security agreement or preferential arrangement held or asserted in respect of
any asset of any kind or nature whatsoever including, without limitation, any
conditional sale or other title retention agreement, any lease having
substantially the same economic effect as any of the foregoing, and the filing
of, or agreement to give, any financing statement under the Uniform Commercial
Code or comparable law of any jurisdiction.

                  "Material Adverse Effect" shall mean a material adverse effect
on (a) the condition, operations, assets, business or prospects of the
Borrowers, taken as a whole, (b) the Borrowers' ability to pay the Obligations
in accordance with the terms thereof, (c) the value of the Collateral, or
Agent's Liens on the Collateral or the priority of any such Lien or (d) the
practical realization of the benefits of Agent's and each Lender's rights and
remedies under this Agreement and the Other Documents.

                  "Maximum Revolving Advance Amount" shall mean $50,000,000.

                  "Monthly Advances" shall have the meaning set forth in Section
3.1 hereof.

                  "Mortgage" shall mean with respect to Real Property owned by
any Borrower, or leased by a Borrower pursuant to a ground lease, and located in
Avon Lake, Ohio, Hatfield, Massachusetts, Martins Ferry, Ohio, and Sebring,
Florida (but excluding the real property owned by LESCO and located in
Wellington, Ohio, Stockton, California and Windsor, New Jersey), a mortgage on
such Real Property or the Borrower's Leasehold Interests in such ground lease
securing the original principal amount of up to $50,000,000 together with all
extensions, renewals, amendments, supplements, modifications, substitutions and
replacements thereto and thereof.

                  "Multiemployer Plan" shall mean a "multiemployer plan" as
defined in Sections 3(37) and 4001(a)(3) of ERISA.

                                      -12-
<PAGE>

                  "Net Worth" at a particular date, shall mean all amounts which
would be included under shareholders' equity on a balance sheet of LESCO on a
consolidated basis determined in accordance with GAAP as at such date.

                  "Non-Financed Capital Expenditures" shall mean capital
expenditures of the Borrowers which are not financed by any third party lender
but shall include capital expenditures which are financed with Revolving
Advances.

                  "Note" shall mean the Revolving Credit Note.

                  "Note Pledge Agreement" shall mean the Note Pledge Agreement
with respect to the Disputanta Note executed and delivered by LESCO to the Agent
for the benefit of the Lenders.

                  "Obligations" shall mean and include any and all loans,
advances, debts, liabilities, obligations, covenants and duties owing by
Borrowers to Lenders or Agent or any Affiliate of Agent or any Lender of any
kind or nature, present or future (including, without limitation, any interest
accruing thereon after maturity, or after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding relating to any Borrower, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding), whether or not evidenced
by any note, guaranty or other instrument, whether arising under any agreement,
instrument or document, (including, without limitation, this Agreement and the
Other Documents) whether or not for the payment of money, whether arising by
reason of an extension of credit, opening of a letter of credit, loan, equipment
lease or guarantee, under any interest or currency swap, future, option or other
similar agreement (including the Interest Rate Protection Agreement) entered
into with the Agent or any Lender or any of their respective Affiliate[s], or in
any other manner, whether arising out of overdrafts or deposit or other accounts
or electronic funds transfers (whether through automated clearing houses or
otherwise) or out of the Agent's or any Lender's or any of their respective
Affiliate's non-receipt of or inability to collect funds or otherwise not being
made whole in connection with depository transfer check or other similar
arrangements, whether direct or indirect (including those acquired by assignment
or participation), absolute or contingent, joint or several, due or to become
due, now existing or hereafter arising, contractual or tortious, liquidated or
unliquidated, regardless of how such indebtedness or liabilities arise or by
what agreement or instrument they may be evidenced or whether evidenced by any
agreement or instrument, including, but not limited to, any and all of any
Borrower's Indebtedness and/or liabilities under this Agreement, the Other
Documents or under any other agreement between Agent or Lenders or any of their
respective Affiliates and any Borrower and any amendments, extensions, renewals
or increases and all costs and expenses of Agent and any Lender or any of their
respective Affiliates incurred in the documentation, negotiation, modification,
enforcement, collection or otherwise in connection with any of the foregoing,
including but not limited to reasonable attorneys' fees and expenses and all
obligations of any Borrower to Agent or Lenders to perform acts or refrain from
taking any action.

                  "Original Owners" shall mean the shareholders of LESCO as of
the Closing Date.

                                      -13-
<PAGE>

                  "Other Documents" shall mean the Mortgage, the Note, the
Patent, Trademark and Copyright Security Agreement, the Note Pledge Agreement
and any and all other agreements, instruments and documents, including, without
limitation, guaranties, pledges, powers of attorney, consents, and all other
writings heretofore, now or hereafter executed by any Borrower and/or delivered
to Agent or any Lender in respect of the transactions contemplated by this

                  "Parent" of any Person shall mean a corporation or other
entity owning, directly or indirectly at least 50% of the shares of stock or
other ownership interests having ordinary voting power to elect a majority of
the directors of the Person, or other Persons performing similar functions for
any such Person.

                  "Participant" shall mean each Person who shall be granted the
right by any Lender to participate in any of the Advances and who shall have
entered into a participation agreement in form and substance satisfactory to
such Lender.

                  "Patent, Trademark and Copyright Security Agreement" shall
mean the Patent, Trademark and Copyright Security Agreement executed and
delivered by each of the Borrowers to the Agent for the benefit of the Lenders.

                  "Payment Office" shall mean initially Two Tower Center
Boulevard, Eighth Floor, East Brunswick, New Jersey 08816; thereafter, such
other office of Agent, if any, which it may designate by notice to Borrowing
Agent and to each Lender to be the Payment Office.

                  "PBGC" shall mean the Pension Benefit Guaranty Corporation.

                  "Permitted Encumbrances" shall mean (a) Liens in favor of
Agent for the benefit of Agent and Lenders; (b) Liens for taxes, assessments or
other governmental charges not delinquent or being contested in good faith and
by appropriate proceedings and with respect to which proper reserves have been
taken by Borrowers; provided, that, the Lien shall have no effect on the
priority of the Liens in favor of Agent or the value of the assets in which
Agent has such a Lien and a stay of enforcement of any such Lien shall be in
effect; (c) matters of record disclosed on the title insurance commitments
obtained pursuant to Section 8.1(r), (d) Liens disclosed in the financial
statements or notes thereto referred to in Section 5.5, the existence of which
Agent has consented to in writing; (e) deposits or pledges to secure obligations
under worker's compensation, social security or similar laws, or under
unemployment insurance; (f) deposits or pledges to secure bids, tenders,
contracts (other than contracts for the payment of money), leases, statutory
obligations, surety and appeal bonds and other obligations of like nature
arising in the ordinary course of any Borrower's business; (g) judgment Liens
that have been stayed or bonded and mechanics', workers', materialmen's or other
like Liens arising in the ordinary course of any Borrower's business with
respect to obligations which are not due or which are being contested in good
faith by the applicable Borrower; (h) Liens placed upon fixed assets hereafter
acquired to secure a portion of the purchase price thereof, provided that (x)
any such lien shall not encumber any other property of the Borrowers and (y) the
aggregate amount of Indebtedness secured by such Liens incurred as a result of
such purchases during any fiscal year shall not exceed the amount provided for
in Section 7.6; (i) growers' and other statutory

                                      -14-
<PAGE>

Liens on grass seed, (j) Liens which individually or in the aggregate do no
encumber Collateral having a value in excess of $500,000; and (k) Liens
disclosed on Schedule 1.2(p).

                  "Person" shall mean any individual, sole proprietorship,
partnership, corporation, business trust, joint stock company, trust,
unincorporated organization, association, limited liability company,
institution, public benefit corporation, joint venture, entity or government
(whether Federal, state, county, city, municipal or otherwise, including any
instrumentality, division, agency, body or department thereof).

                  "Plan" shall mean any employee benefit plan within the meaning
of Section 3(3) of ERISA, maintained for employees of Borrowers or any member of
the Controlled Group or any such Plan to which any Borrower or any member of the
Controlled Group is required to contribute on behalf of any of its employees.

                  "Pro Forma Balance Sheet" shall have the meaning set forth in
Section 5.5(a) hereof.

                  "Pro Forma Financial Statements" shall have the meaning set
forth in Section 5.5(b) hereof.

                  "Projections" shall have the meaning set forth in Section
5.5(b) hereof.

                  "Purchasing Lender" shall have the meaning set forth in
Section 16.3 hereof.

                  "RCRA" shall mean the Resource Conservation and Recovery Act,
42 U.S.C. Sections 6901 et seq., as amended.

                  "Real Property" shall mean all of each Borrower's right, title
and interest in and to owned premises and premises leased pursuant to a ground
lease, all the foregoing as identified on Schedule 4.19 hereto.

                  "Receivables" shall mean and include, as to each Borrower, all
of such Borrower's accounts, contract rights, instruments (including those
evidencing indebtedness owed to Borrowers by their Affiliates), documents,
chattel paper (including electronic chattel paper), general intangibles relating
to accounts, drafts and acceptances, credit card receivables, and all other
forms of obligations owing to such Borrower arising out of or in connection with
the sale or lease of Inventory or the rendition of services, all supporting
obligations, guarantees and other security therefor, whether secured or
unsecured, now existing or hereafter created, and whether or not specifically
sold or assigned to Agent hereunder.

                  "Reimbursement Agreement" shall mean that certain
Reimbursement Agreement dated as of March 1, 1993, as amended, between LESCO and
PNC (formerly known as Pittsburgh National Bank) relating to the IRB Letter of
Credit.

                  "Release" shall have the meaning set forth in Section
5.7(c)(i) hereof.

                  "Reportable Event" shall mean a reportable event described in
Section 4043(b) of ERISA or the regulations promulgated thereunder.

                                      -15-
<PAGE>

                  "Required Lenders" shall mean Lenders holding at least
fifty-one percent (51%) of the Advances and, if no Advances are outstanding,
shall mean Lenders holding at least fifty-one percent (51%) of the Commitment
Percentages.

                  "Reserve Percentage" shall mean the maximum effective
percentage in effect on any day as prescribed by the Board of Governors of the
Federal Reserve System (or any successor) for determining the reserve
requirements (including, without limitation, supplemental, marginal and
emergency reserve requirements) with respect to eurocurrency funding.

                  "Revolving Advances" shall mean Advances made other than
Letters of Credit.

                  "Revolving Credit Note" shall mean, collectively, the
promissory notes referred to in Section 2.1(a) hereof.

                  "Revolving Interest Rate" shall mean an interest rate per
annum equal to (a) the sum of the Alternate Base Rate plus the Applicable Margin
with respect to Domestic Rate Loans and (b) the sum of the Eurodollar Rate plus
the Applicable Margin with respect to Eurodollar Rate Loans.

                  "Section 20 Subsidiary" shall mean the Subsidiary of the bank
holding company controlling PNC, which Subsidiary has been granted authority by
the Federal Reserve Board to underwrite and deal in certain Ineligible
Securities.

                  "Senior Debt Payments" shall mean and include all cash
actually expended by Borrowers to make (a) interest payments on any Advances
hereunder, plus, (b) payments for all fees, commissions and charges set forth
herein and with respect to any Advances, plus (c) capitalized lease payments,
plus (d) payments with respect to any other Indebtedness for borrowed money,
plus (e) to the extent not included in EBITDA, recurring fees paid to GE Capital
with respect to the Accounts Sales Agreement and/or the GE Program Agreement;
provided, Senior Debt Payments shall not include nonrecurring fees charged by
the Agent and the Lenders under this Agreement or by GE Capital under the
Accounts Sales Agreement and/or the GE Program Agreement which are payable on or
before the Closing Date.

                  "Settlement Date" shall mean the Closing Date and thereafter
Wednesday of each week unless such day is not a Business Day in which case it
shall be the next succeeding Business Day.

                  "Stores-on-Wheels Inventory" shall mean Inventory which is
located on motor vehicles owned or leased by a Borrower and from which such
Borrower sells such Inventory to its Customers in the ordinary course of
business.

                  "Subsidiary" shall mean a corporation or other entity of whose
shares of stock or other ownership interests having ordinary voting power (other
than stock or other ownership interests having such power only by reason of the
happening of a contingency) to elect a majority of the directors of such
corporation, or other Persons performing similar functions for such entity, are
owned, directly or indirectly, by such Person.

                  "Term" shall have the meaning set forth in Section 13.1
hereof.

                                      -16-
<PAGE>

                  "Termination Event" shall mean (i) a Reportable Event with
respect to any Plan or Multiemployer Plan; (ii) the withdrawal of any Borrower
or any member of the Controlled Group from a Plan or Multiemployer Plan during a
plan year in which such entity was a "substantial employer" as defined in
Section 4001(a)(2) of ERISA; (iii) the providing of notice of intent to
terminate a Plan in a distress termination described in Section 4041(c) of
ERISA; (iv) the institution by the PBGC of proceedings to terminate a Plan or
Multiemployer Plan; (v) any event or condition (a) which might constitute
grounds under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, any Plan or Multiemployer Plan, or (b) that may
result in termination of a Multiemployer Plan pursuant to Section 4041A of
ERISA; or (vi) the partial or complete withdrawal within the meaning of Sections
4203 and 4205 of ERISA, of any Borrower or any member of the Controlled Group
from a Multiemployer Plan.

                  "Toxic Substance" shall mean and include any material present
on the Real Property or the Leasehold Interests which has been shown to have
significant adverse effect on human health or which is subject to regulation
under the Toxic Substances Control Act (TSCA), 15 U.S.C. Sections 2601 et seq.,
applicable state law, or any other applicable Federal or state laws now in force
or hereafter enacted relating to toxic substances. "Toxic Substance" includes
but is not limited to asbestos, polychlorinated biphenyls (PCBs) and lead-based
paints.

                  "Transactions" shall have the meaning set forth in Section 5.5
hereof.

                  "Transferee" shall have the meaning set forth in Section
16.3(b) hereof.

                  "Undrawn Availability" at a particular date shall mean an
amount equal to (a) the lesser of (i) the Formula Amount plus outstanding
Letters of Credit or (ii) the Maximum Revolving Advance Amount, minus (b) the
sum of (i) the outstanding amount of Advances plus (ii) all amounts due and
owing to Borrowers' trade creditors which are outstanding beyond sixty (60) days
from the due date, plus (iii) fees and expenses for which Borrowers are liable
but which have not been paid or charged to Borrowers' Account.

                  "USA Patriot Act" shall mean the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, Public Law 107-56, as the same has been, or shall
hereafter be, renewed, extended, amended or replaced.

                  "Week" shall mean the time period commencing with the opening
of business on a Wednesday and ending on the end of business the following
Tuesday.

         1.3.     Uniform Commercial Code Terms. All terms used herein and
defined in the Uniform Commercial Code as adopted in the State of Ohio from time
to time shall have the meaning given therein unless otherwise defined herein. To
the extent the definition of any category or type of Collateral is expanded by
any amendment, modification or revision to the Uniform Commercial Code, such
expanded definition will apply automatically as of the date of such amendment,
modification or revision.

         1.4.     Certain Matters of Construction. The terms "herein", "hereof"
and "hereunder" and other words of similar import refer to this Agreement as a
whole and not to any particular section, paragraph or subdivision. Any pronoun
used shall be deemed to cover all genders.

                                      -17-
<PAGE>

Wherever appropriate in the context, terms used herein in the singular also
include the plural and vice versa. All references to statutes and related
regulations shall include any amendments of same and any successor statutes and
regulations. Unless otherwise provided, all references to any instruments or
agreements to which Agent is a party, including, without limitation, references
to any of the Other Documents, shall include any and all modifications or
amendments thereto and any and all extensions or renewals thereof.

II.      ADVANCES, PAYMENTS.

         2.1.     (a)      Revolving Advances. Subject to the terms and
conditions set forth in this Agreement, each Lender, severally and not jointly,
will make Revolving Advances to Borrowers in aggregate amounts outstanding at
any time equal to such Lender's Commitment Percentage of the lesser of (x) the
Maximum Revolving Advance Amount less the aggregate amount of outstanding
Letters of Credit and GE Proceeds Advances or (y) an amount equal to the sum of:

                                    (i)      up to the lesser of (A) 53.7%,
                           subject to the provisions of Section 2.1(c) hereof,
                           during the period from October 1 through February 29
                           of any calendar year and 60%, subject to the
                           provisions of Section 2.1(c) hereof, during the
                           period from March 1 through September 30 of any
                           calendar year ("Inventory Advance Rates"), of the
                           value of Eligible Inventory, or (B) $50,000,000,
                           minus

                                    (ii)     the amount by which the
                           availability for Revolving Advances based upon
                           Stores-on-Wheels Inventory under item (i) above
                           exceeds $4,000,000; minus

                                    (iii)    the aggregate amount of outstanding
                           Letters of Credit and GE Proceeds Advances, minus

                                    (iv)     the Bank Products Reserves and such
                           other reserves as Agent may reasonably deem proper
                           and necessary from time to time.

         The amount derived from (x) Section 2.1(a)(y)(i) minus the sum of (y)
Sections 2.1 (a)(y)(ii), (iii) and (iv) at any time and from time to time shall
be referred to as the "Formula Amount". The Revolving Advances shall be
evidenced by one or more secured promissory notes (collectively, the "Revolving
Credit Note") substantially in the form attached hereto as Exhibit 2.1(a).

                  (b)      [Intentionally Omitted.]

                  (c)      Discretionary Rights. Subject to Section 16.2, the
Inventory Advance Rates may be increased or decreased by Agent at any time and
from time to time in the exercise of its reasonable discretion. Each Borrower
consents to any such increases or decreases and acknowledges that decreasing the
Inventory Advance Rates or increasing the reserves may limit or restrict
Advances requested by Borrowing Agent.

         2.2.     Procedure for Borrowing Advances.

                                      -18-
<PAGE>

                  (a)      Borrowing Agent on behalf of any Borrower may notify
Agent prior to 11:00 a.m. on a Business Day of a Borrower's request to incur, on
that day, a Revolving Advance hereunder. Should any amount required to be paid
as interest hereunder, or as fees or other charges under this Agreement or any
Other Document, or with respect to any other Obligation, become due, same shall
be deemed a request for a Revolving Advance as of the date such payment is due,
in the amount required to pay in full such interest, fee, charge or Obligation
under this Agreement or any other agreement with Agent or Lenders, and such
request shall be irrevocable.

                  (b)      Notwithstanding the provisions of (a) above, in the
event any Borrower desires to obtain a Eurodollar Rate Loan, Borrowing Agent
shall give Agent at least three (3) Business Days' prior written notice,
specifying (i) the date of the proposed borrowing (which shall be a Business
Day), (ii) the type of borrowing and the amount on the date of such Advance to
be borrowed, which amount shall be in a minimum amount of $1,000,000 and in
integral multiples of $500,000 thereafter, and (iii) the duration of the first
Interest Period therefor. Interest Periods for Eurodollar Rate Loans shall be
for one, two or three months; provided, if an Interest Period would end on a day
that is not a Business Day, it shall end on the next succeeding Business Day
unless such day falls in the next succeeding calendar month in which case the
Interest Period shall end on the next preceding Business Day. No Eurodollar Rate
Loan shall be made available to Borrower during the continuance of a Default or
an Event of Default.

                  (c)      Each Interest Period of a Eurodollar Rate Loan shall
commence on the date such Eurodollar Rate Loan is made and shall end on such
date as Borrowing Agent may elect as set forth in subsection (b)(iii) above
provided that the exact length of each Interest Period shall be determined in
accordance with the practice of the interbank market for offshore Dollar
deposits and no Interest Period shall end after the last day of the Term.

                  Borrowing Agent shall elect the initial Interest Period
applicable to a Eurodollar Rate Loan by its notice of borrowing given to Agent
pursuant to Section 2.2(b) or by its notice of conversion given to Agent
pursuant to Section 2.2(d), as the case may be. Borrowing Agent shall elect the
duration of each succeeding Interest Period by giving irrevocable written notice
to Agent of such duration not less than three (3) Business Days prior to the
last day of the then current Interest Period applicable to such Eurodollar Rate
Loan. If Agent does not receive timely notice of the Interest Period elected by
Borrowing Agent, Borrowers shall be deemed to have elected to convert to a
Domestic Rate Loan subject to Section 2.2(d) hereinbelow.

                  (d)      Provided that no Event of Default shall have occurred
and be continuing, any Borrower may, on the last Business Day of the then
current Interest Period applicable to any outstanding Eurodollar Rate Loan, or
on any Business Day with respect to Domestic Rate Loans, convert any such loan
into a loan of another type in the same aggregate principal amount provided that
any conversion of a Eurodollar Rate Loan shall be made only on the last Business
Day of the then current Interest Period applicable to such Eurodollar Rate Loan.
If a Borrower desires to convert a loan, Borrowing Agent shall give Agent not
less than three (3) Business Days' prior written notice to convert from a
Domestic Rate Loan to a Eurodollar Rate Loan or one (1) Business Day's prior
written notice to convert from a Eurodollar Rate Loan to a Domestic Rate Loan,
specifying the date of such conversion, the loans to be converted and if the

                                      -19-
<PAGE>

conversion is from a Domestic Rate Loan to any other type of loan, the duration
of the first Interest Period therefor. After giving effect to each such
conversion, there shall not be outstanding more than five (5) Eurodollar Rate
Loans, in the aggregate.

                  (e)      [Intentionally Omitted.]

                  (f)      Each Borrower shall indemnify Agent and Lenders and
hold Agent and Lenders harmless from and against any and all losses or expenses
that Agent and Lenders may sustain or incur as a consequence of any prepayment,
conversion of or any default by any Borrower in the payment of the principal of
or interest on any Eurodollar Rate Loan or failure by any Borrower to complete a
borrowing of, a prepayment of or conversion of or to a Eurodollar Rate Loan
after notice thereof has been given, including, but not limited to, any interest
payable by Agent or Lenders to lenders of funds obtained by it in order to make
or maintain its Eurodollar Rate Loans hereunder. A certificate as to any
additional amounts payable pursuant to the foregoing sentence submitted by Agent
or any Lender to Borrowing Agent shall be conclusive absent manifest error.

                  (g)      Notwithstanding any other provision hereof, if any
applicable law, treaty, regulation or directive, or any change therein or in the
interpretation or application thereof, shall make it unlawful for any Lender
(for purposes of this subsection (g), the term "Lender" shall include any Lender
and the office or branch where any Lender or any corporation or bank controlling
such Lender makes or maintains any Eurodollar Rate Loans) to make or maintain
its Eurodollar Rate Loans, the obligation of Lenders to make Eurodollar Rate
Loans hereunder shall forthwith be cancelled and Borrowers shall, if any
affected Eurodollar Rate Loans are then outstanding, promptly upon request from
Agent, either pay all such affected Eurodollar Rate Loans or convert such
affected Eurodollar Rate Loans into loans of another type. If any such payment
or conversion of any Eurodollar Rate Loan is made on a day that is not the last
day of the Interest Period applicable to such Eurodollar Rate Loan, Borrowers
shall pay Agent, upon Agent's request, such amount or amounts as may be
necessary to compensate Lenders for any loss or expense sustained or incurred by
Lenders in respect of such Eurodollar Rate Loan as a result of such payment or
conversion, including (but not limited to) any interest or other amounts payable
by Lenders to lenders of funds obtained by Lenders in order to make or maintain
such Eurodollar Rate Loan. A certificate as to any additional amounts payable
pursuant to the foregoing sentence submitted by Lenders to Borrowing Agent shall
be conclusive absent manifest error.

         2.3.     Disbursement of Advance Proceeds. All Advances shall be
disbursed from whichever office or other place Agent may designate from time to
time and, together with any and all other Obligations of Borrowers to Agent or
Lenders, shall be charged to Borrowers' Account on Agent's books. During the
Term, Borrowers may use the Revolving Advances by borrowing, prepaying and
reborrowing, all in accordance with the terms and conditions hereof. The
proceeds of each Revolving Advance requested by Borrowers or deemed to have been
requested by Borrowers under Section 2.2(a) hereof shall, with respect to
requested Revolving Advances to the extent Lenders make such Revolving Advances,
be made available to the applicable Borrower on the day so requested by way of
credit to such Borrower's operating account at PNC, or such other bank as
Borrowing Agent may designate following notification to Agent, in immediately
available federal funds or other immediately available funds or, with

                                      -20-
<PAGE>

respect to Revolving Advances deemed to have been requested by any Borrower, be
disbursed to Agent to be applied to the outstanding Obligations giving rise to
such deemed request.

         2.4.     [Intentionally Omitted.]

         2.5.     Maximum Advances. The aggregate balance of Revolving Advances
outstanding at any time shall not exceed the lesser of (a) Maximum Revolving
Advance Amount less outstanding Letters of Credit, or (b) the Formula Amount.

         2.6.     Repayment of Advances.

                  (a)      The Revolving Advances shall be due and payable in
full on the last day of the Term subject to earlier prepayment as herein
provided.

                  (b)      Each Borrower recognizes that the amounts evidenced
by checks, notes, drafts or any other items of payment relating to and/or
proceeds of Collateral may not be collectible by Agent on the date received. In
consideration of Agent's agreement to conditionally credit Borrowers' Account as
of the Business Day on which Agent receives those items of payment, each
Borrower agrees that, in computing the charges under this Agreement, all items
of payment shall be deemed applied by Agent on account of the Obligations one
(1) Business Day after the Business Day Agent receives such payments via wire
transfer or electronic depository check. Agent is not, however, required to
credit Borrowers' Account for the amount of any item of payment which is
unsatisfactory to Agent in the Agent's reasonable discretion, and Agent may
charge Borrowers' Account for the amount of any item of payment which is
returned to Agent unpaid.

                  (c)      All payments of principal, interest and other amounts
payable hereunder, or under any of the Other Documents shall be made to Agent at
the Payment Office not later than 1:00 P.M. (New York Time) on the due date
therefor in lawful money of the United States of America in federal funds or
other funds immediately available to Agent. Agent shall have the right to
effectuate payment on any and all Obligations due and owing hereunder by
charging Borrowers' Account or by making Advances as provided in Section 2.2
hereof.

                  (d)      Borrowers shall pay principal, interest, and all
other amounts payable hereunder, or under any related agreement, without any
deduction whatsoever, including, but not limited to, any deduction for any
setoff or counterclaim.

         2.7.     Repayment of Excess Advances. The aggregate balance of
Advances outstanding at any time in excess of the maximum amount of Advances
permitted hereunder shall be immediately due and payable without the necessity
of any demand, at the Payment Office, whether or not a Default or Event of
Default has occurred.

         2.8.     Statement of Account. Agent shall maintain, in accordance with
its customary procedures, a loan account ("Borrowers' Account") in the name of
Borrowers in which shall be recorded the date and amount of each Advance made by
Agent and the date and amount of each payment in respect thereof; provided,
however, the failure by Agent to record the date and amount of any Advance shall
not adversely affect Agent or any Lender. Each month, Agent shall send to
Borrowing Agent a statement showing the accounting for the Advances made,

                                     -21-
<PAGE>

payments made or credited in respect thereof, and other transactions between
Agent and Borrowers, during such month. The monthly statements shall be deemed
correct and binding upon Borrowers in the absence of manifest error and shall
constitute an account stated between Lenders and Borrowers unless Agent receives
a written statement of Borrowers' specific exceptions thereto within thirty (30)
days after such statement is received by Borrowing Agent. The records of Agent
with respect to the loan account shall be conclusive evidence absent manifest
error of the amounts of Advances and other charges thereto and of payments
applicable thereto.

         2.9.     Letters of Credit. Subject to the terms and conditions hereof
and upon prior request by Borrowing Agent to Agent by 10:00 a.m. on the date
which is five (5) Business Days prior to the proposed issuance thereof, Agent
shall issue or cause the issuance of Letters of Credit ("Letters of Credit") on
behalf of any Borrower; provided, however, that Agent will not be required to
issue or cause to be issued any Letters of Credit to the extent that the face
amount of such Letters of Credit would then cause the sum of (i) the outstanding
Revolving Advances plus (ii) outstanding Letters of Credit and GE Proceeds
Advances to exceed the lesser of (x) the Maximum Revolving Advance Amount or (y)
the Formula Amount. The maximum amount of outstanding Letters of Credit shall
not exceed $20,000,000 in the aggregate at any time. All disbursements or
payments related to Letters of Credit shall be deemed to be Domestic Rate Loans
consisting of Revolving Advances and shall bear interest at the Revolving
Interest Rate for Domestic Rate Loans; Letters of Credit that have not been
drawn upon shall not bear interest. The term "Letters of Credit" shall include,
subject to Section 2.11(e) hereof, the IRB Letter of Credit and the other
Letters of Credit set forth on Schedule 2.9, each of which shall be deemed to be
issued pursuant to this Agreement as of the date hereof.

         2.10.    Issuance of Letters of Credit.

                  (a)      Borrowing Agent, on behalf of Borrowers, may request
Agent to issue or cause the issuance of a Letter of Credit by delivering to
Agent at the Payment Office, Agent's form of Letter of Credit Application (the
"Letter of Credit Application") completed to the satisfaction of Agent; and,
such other certificates, documents and other papers and information as Agent may
reasonably request. Borrowing Agent, on behalf of Borrowers, also has the right
to give instructions and make agreements with respect to any application, any
applicable letter of credit and security agreement, any applicable letter of
credit reimbursement agreement and/or any other applicable agreement, any letter
of credit and the disposition of documents, disposition of any unutilized funds,
and to agree with Agent upon any amendment, extension or renewal of any Letter
of Credit.

                  (b)      Each Letter of Credit shall, among other things, (i)
provide for the payment of sight drafts or acceptances of usance drafts when
presented for honor thereunder in accordance with the terms thereof and when
accompanied by the documents described therein and (ii) have an expiry date not
later than twelve (12) months after such Letter of Credit's date of issuance and
in no event later than the last day of the Term. Each Letter of Credit shall be
subject to the Uniform Customs and Practice for Documentary Credits (1993
Revision), International Chamber of Commerce Publication No. 500, and any
amendments or revision thereof adhered to by the Issuer and, to the extent not
inconsistent therewith, the laws of the State of New York.

                                      -22-
<PAGE>

                  (c)      Agent shall use its reasonable efforts to notify
Lenders of the request by Borrowing Agent for a Letter of Credit hereunder.

         2.11.    Requirements For Issuance of Letters of Credit.

                  (a)      In connection with the issuance of any Letter of
Credit, Borrowers shall indemnify, save and hold Agent, each Lender and each
Issuer harmless from any loss, cost, expense or liability, including, without
limitation, payments made by Agent, any Lender or any Issuer and expenses and
reasonable attorneys' fees incurred by Agent, any Lender or Issuer arising out
of, or in connection with, any Letter of Credit to be issued or created for any
Borrower other than due to Agent's, Lender's or Issuer's gross negligence or
willful misconduct. Borrowers shall be bound by Agent's or any Issuer's
regulations and good faith interpretations of any Letter of Credit issued or
created for Borrowers' Account, although this interpretation may be different
from its own; and, neither Agent, nor any Lender, nor any Issuer nor any of
their correspondents shall be liable for any error, negligence, or mistakes,
whether of omission or commission, in following Borrowing Agent's or any
Borrower's instructions or those contained in any Letter of Credit or of any
modifications, amendments or supplements thereto or in issuing or paying any
Letter of Credit, except for Agent's, any Lender's, any Issuer's or any of such
correspondent's gross negligence or willful misconduct.

                  (b)      Borrowing Agent shall authorize and direct any Issuer
to name the applicable Borrower as the "Applicant" or "Account Party" of each
Letter of Credit. If Agent is not the Issuer of any Letter of Credit, Borrowing
Agent shall authorize and direct the Issuer to deliver to Agent all instruments,
documents, and other writings and property received by the Issuer pursuant to
the Letter of Credit and to accept and rely upon Agent's instructions and
agreements with respect to all matters arising in connection with the Letter of
Credit, the application therefor.

                  (c)      In connection with all Letters of Credit issued or
caused to be issued by Agent under this Agreement, each Borrower hereby appoints
Agent, or its designee, as its attorney, with full power and authority (i) to
sign and/or endorse such Borrower's name upon any warehouse or other receipts,
letter of credit applications and acceptances; (ii) to sign such Borrower's name
on bills of lading; (iii) to clear Inventory through the United States of
America Customs Department ("Customs") in the name of such Borrower or Agent or
Agent's designee, and to sign and deliver to Customs officials powers of
attorney in the name of such Borrower for such purpose; and (iv) to complete in
such Borrower's name or Agent's, or in the name of Agent's designee, any order,
sale or transaction, obtain the necessary documents in connection therewith, and
collect the proceeds thereof. Neither Agent nor its attorneys will be liable for
any acts or omissions nor for any error of judgment or mistakes of fact or law,
except for Agent's or its attorney's gross negligence or willful misconduct.
This power, being coupled with an interest, is irrevocable as long as any
Letters of Credit remain outstanding.

                  (d)      Each Lender shall to the extent of the percentage
amount equal to the product of such Lender's Commitment Percentage times the
aggregate amount of all unreimbursed reimbursement obligations arising from
disbursements made or obligations incurred with respect to the Letters of Credit
be deemed to have irrevocably purchased an undivided participation in each such
unreimbursed reimbursement obligation. In the event that at

                                      -23-
<PAGE>

the time a disbursement is made the unpaid balance of Revolving Advances exceeds
or would exceed, with the making of such disbursement, the lesser of the Maximum
Revolving Advance Amount or the Formula Amount, and such disbursement is not
reimbursed by Borrowers within two (2) Business Days, Agent shall promptly
notify each Lender and upon Agent's demand each Lender shall pay to Agent such
Lender's proportionate share of such unreimbursed disbursement together with
such Lender's proportionate share of Agent's unreimbursed costs and expenses
relating to such unreimbursed disbursement. Upon receipt by Agent of a repayment
from any Borrower of any amount disbursed by Agent for which Agent had already
been reimbursed by Lenders, Agent shall deliver to each Lender that Lender's pro
rata share of such repayment. Each Lender's participation commitment shall
continue until the last to occur of any of the following events: (A) Agent
ceases to be obligated to issue or cause to be issued Letters of Credit
hereunder; (B) no Letter of Credit issued hereunder remains outstanding and
uncancelled or (C) all Persons (other than the applicable Borrower) have been
fully reimbursed for all payments made under or relating to Letters of Credit.

                  (e)      Each Borrower, the Agent and each Lender hereby
acknowledge and agree that from and after the Closing Date, the IRB Letter of
Credit shall be deemed to be a Letter of Credit subject to the terms and
conditions of this Agreement, including, without limitation, Sections 2.9
through 2.11 and Section 3.2; provided however, that (i) the fees payable by the
Borrowers with respect to the IRB Letter of Credit are hereby amended to be
equal to the Letter of Credit Fees, which fees shall be payable to the Lenders
ratably based upon the respective Commitment Percentage of each Lender and at
the times provided for in Section 3.2(a) hereof, (ii) the Reimbursement
Agreement and pledge agreement in favor of PNC Bank with respect to the IRB
Letter of Credit shall be deemed to be in favor of the Agent for the benefit of
the Lenders, and (iii) each of the Borrowers other than LESCO acknowledges and
agrees that it is receiving valuable consideration and a direct benefit from the
continuation of the IRB Letter of Credit and waive any defense to payment of the
reimbursement obligation with respect to the IRB Letter of Credit. The rights
and remedies of the Agent and the Lenders under this Agreement and under the
Reimbursement Agreement and pledge agreement related to the IRB Letter of Credit
shall be cumulative and may be exercised successively or concurrently.

         2.12.    Additional Payments. Any sums expended by Agent or any Lender
due to any Borrower's failure to perform or comply with its obligations under
this Agreement or any Other Document including, without limitation, any
Borrower's obligations under Sections 4.2, 4.4, 4.12, 4.13, 4.14 and 6.1 hereof,
may be charged to Borrowers' Account as a Revolving Advance and added to the
Obligations.

         2.13.    Manner of Borrowing and Payment.

                  (a)      Each borrowing of Revolving Advances shall be
advanced according to the applicable Commitment Percentages of Lenders.

                  (b)      Each payment (including each prepayment) by Borrowers
on account of the principal of and interest on the Revolving Advances, shall be
applied to the Revolving Advances pro rata according to the applicable
Commitment Percentages of Lenders. Except as expressly provided herein, all
payments (including prepayments) to be made by any Borrower on account of
principal, interest and fees shall be made without set off or counterclaim and
shall be

                                     -24-
<PAGE>

made to Agent on behalf of the Lenders to the Payment Office, in each case on or
prior to 1:00 P.M., New York time, in Dollars and in immediately available
funds.

                  (c)      (i)      Notwithstanding anything to the contrary
contained in Sections 2.13(a) and (b) hereof, commencing with the first Business
Day following the Closing Date, each borrowing of Revolving Advances shall be
advanced by Agent and each payment by any Borrower on account of Revolving
Advances shall be applied first to those Revolving Advances advanced by Agent.
On or before 1:00 P.M., New York time, on each Settlement Date commencing with
the first Settlement Date following the Closing Date, Agent and Lenders shall
make certain payments as follows: (I) if the aggregate amount of new Revolving
Advances made by Agent during the preceding Week (if any) exceeds the aggregate
amount of repayments applied to outstanding Revolving Advances during such
preceding Week, then each Lender shall provide Agent with funds in an amount
equal to its applicable Commitment Percentage of the difference between (w) such
Revolving Advances and (x) such repayments and (II) if the aggregate amount of
repayments applied to outstanding Revolving Advances during such Week exceeds
the aggregate amount of new Revolving Advances made during such Week, then Agent
shall provide each Lender with funds in an amount equal to its applicable
Commitment Percentage of the difference between (y) such repayments and (z) such
Revolving Advances.

                                    (ii)    Each Lender shall be entitled
                           to earn interest at the applicable Revolving Interest
                           Rate on outstanding Advances which it has funded.

                                   (iii)    Promptly following each Settlement
                           Date, Agent shall submit to each Lender a certificate
                           with respect to payments received and Advances made
                           during the Week immediately preceding such Settlement
                           Date. Such certificate of Agent shall be conclusive
                           in the absence of manifest error.

                  (d)      If any Lender or Participant (a "benefitted Lender")
shall at any time receive any payment of all or part of its Advances, or
interest thereon, or receive any Collateral in respect thereof (whether
voluntarily or involuntarily or by set-off) in a greater proportion than any
such payment to and Collateral received by any other Lender, if any, in respect
of such other Lender's Advances, or interest thereon, and such greater
proportionate payment or receipt of Collateral is not expressly permitted
hereunder, such benefitted Lender shall purchase for cash from the other Lenders
a participation in such portion of each such other Lender's Advances, or shall
provide such other Lender with the benefits of any such Collateral, or the
proceeds thereof, as shall be necessary to cause such benefitted Lender to share
the excess payment or benefits of such Collateral or proceeds ratably with each
of the other Lenders; provided, however, that if all or any portion of such
excess payment or benefits is thereafter recovered from such benefitted Lender,
such purchase shall be rescinded, and the purchase price and benefits returned,
to the extent of such recovery, but without interest. Each Lender so purchasing
a portion of another Lender's Advances may exercise all rights of payment
(including, without limitation, rights of set-off) with respect to such portion
as fully as if such Lender were the direct holder of such portion.

                                      -25-
<PAGE>

                  (e)      Unless Agent shall have been notified by telephone,
confirmed in writing, by any Lender that such Lender will not make the amount
which would constitute its applicable Commitment Percentage of the Advances
available to Agent, Agent may (but shall not be obligated to) assume that such
Lender shall make such amount available to Agent on the next Settlement Date
and, in reliance upon such assumption, make available to Borrowers a
corresponding amount. Agent will promptly notify Borrowers of its receipt of any
such notice from a Lender. If such amount is made available to Agent on a date
after such next Settlement Date, such Lender shall pay to Agent on demand an
amount equal to the product of (i) the daily average Federal Funds Effective
Rate (computed on the basis of a year of 360 days) during such period as quoted
by Agent, times (ii) such amount, times (iii) the number of days from and
including such Settlement Date to the date on which such amount becomes
immediately available to Agent. A certificate of Agent submitted to any Lender
with respect to any amounts owing under this paragraph (e) shall be conclusive,
in the absence of manifest error. If such amount is not in fact made available
to Agent by such Lender within three (3) Business Days after such Settlement
Date, Agent shall be entitled to recover such an amount, with interest thereon
at the rate per annum then applicable to such Revolving Advances hereunder, on
demand from Borrowers; provided, however, that Agent's right to such recovery
shall not prejudice or otherwise adversely affect Borrowers' rights (if any)
against such Lender.

         2.14.    [Intentionally Omitted.]

         2.15.    Use of Proceeds. Borrowers shall apply the proceeds of
Advances to provide for their working capital needs, to pay fees and expenses
relating to this transaction and the transactions contemplated by the Accounts
Sales Agreement, for capital expenditures and for general corporate purposes of
the Borrowers.

         2.16.    Defaulting Lender.

                  (a)      Notwithstanding anything to the contrary contained
herein, in the event any Lender (x) has refused (which refusal constitutes a
breach by such Lender of its obligations under this Agreement) to make available
its portion of any Advance or (y) notifies either Agent or Borrowing Agent that
it does not intend to make available its portion of any Advance (if the actual
refusal would constitute a breach by such Lender of its obligations under this
Agreement) (each, a "Lender Default"), all rights and obligations hereunder of
such Lender (a "Defaulting Lender") as to which a Lender Default is in effect
and of the other parties hereto shall be modified to the extent of the express
provisions of this Section 2.16 while such Lender Default remains in effect.

                  (b)      Advances shall be incurred pro rata from Lenders (the
"Non-Defaulting Lenders") which are not Defaulting Lenders based on their
respective Commitment Percentages, and no Commitment Percentage of any Lender or
any pro rata share of any Advances required to be advanced by any Lender shall
be increased as a result of such Lender Default. Amounts received in respect of
principal of any type of Advances shall be applied to reduce the applicable
Advances of each Lender pro rata based on the aggregate of the outstanding
Advances of that type of all Lenders at the time of such application; provided,
that, such amount shall not be applied to any Advances of a Defaulting Lender at
any time when, and to the extent that, the

                                     -26-
<PAGE>

aggregate amount of Advances of any Non-Defaulting Lender exceeds such
Non-Defaulting Lender's Commitment Percentage of all Advances then outstanding.

                  (c)      A Defaulting Lender shall not be entitled to give
instructions to Agent or to approve, disapprove, consent to or vote on any
matters relating to this Agreement and the Other Documents. All amendments,
waivers and other modifications of this Agreement and the Other Documents may be
made without regard to a Defaulting Lender and, for purposes of the definition
of "Required Lenders", a Defaulting Lender shall be deemed not to be a Lender
and not to have Advances outstanding.

                  (d)      Other than as expressly set forth in this Section
2.16, the rights and obligations of a Defaulting Lender (including the
obligation to indemnify Agent) and the other parties hereto shall remain
unchanged. Nothing in this Section 2.16 shall be deemed to release any
Defaulting Lender from its obligations under this Agreement and the Other
Documents, shall alter such obligations, shall operate as a waiver of any
default by such Defaulting Lender hereunder, or shall prejudice any rights which
any Borrower, Agent or any Lender may have against any Defaulting Lender as a
result of any default by such Defaulting Lender hereunder.

                  (e)      In the event a Defaulting Lender retroactively cures
to the satisfaction of Agent the breach which caused a Lender to become a
Defaulting Lender, such Defaulting Lender shall no longer be a Defaulting Lender
and shall be treated as a Lender under this Agreement.

III.     INTEREST AND FEES.

         3.1.     Interest. Interest on Revolving Advances shall be payable in
arrears on the first day of each month with respect to Domestic Rate Loans and,
with respect to Eurodollar Rate Loans, at the end of each Interest Period.
Interest charges shall be computed on the actual principal amount of Advances
outstanding during the month (the "Monthly Advances") at a rate per annum equal
to the applicable Revolving Interest Rate. Whenever, subsequent to the date of
this Agreement, the Alternate Base Rate is increased or decreased, the
applicable Revolving Interest Rate for Domestic Rate Loans shall be similarly
changed without notice or demand of any kind by an amount equal to the amount of
such change in the Alternate Base Rate during the time such change or changes
remain in effect. The Eurodollar Rate shall be adjusted with respect to
Eurodollar Rate Loans without notice or demand of any kind on the effective date
of any change in the Reserve Percentage as of such effective date. Upon and
after the occurrence of an Event of Default, and during the continuation
thereof, the Obligations shall bear interest at the applicable Revolving
Interest Rate plus two percent (2%) per annum (the "Default Rate").

         3.2.     Letter of Credit Fees.

                  (a)      Borrowers shall pay (x) to Agent, for the benefit of
Lenders, fees for each Letter of Credit for the period from and excluding the
date of issuance of same to and including the date of expiration or termination,
equal to the average daily face amount of each outstanding Letter of Credit
multiplied by the applicable letter of credit fee per annum set forth on
Schedule 1.2(a) under the heading "Letter of Credit Fees", such fees to be
calculated on the basis of a 360-day year for the actual number of days elapsed
and to be payable monthly in arrears on the first

                                      -27-
<PAGE>

day of each month and on the last day of the Term and (y) to the Issuer, for its
own account, fees for each Letter of Credit for the period from and excluding
the date of issuance of same to and including the date of expiration or
termination, equal to the average daily face amount of each outstanding Letter
of Credit multiplied by the applicable letter of fee per annum set forth on
Schedule 1.2(a) under the heading "Letter of Credit Issuance Fee", such fees to
be calculated on the basis of a 360-day year for the actual number of days
elapsed and to be payable monthly in arrears on the first day of each month and
on the last day of the Term, and (z) to the Issuer, for its own account any and
all fees and expenses as agreed upon by the Issuer and the Borrowing Agent in
connection with any Letter of Credit, including, without limitation, in
connection with the opening, amendment or renewal of any such Letter of Credit
and any acceptances created thereunder and shall reimburse Agent for any and all
fees and expenses, if any, paid by Agent to the Issuer (all of the foregoing
fees, the "Letter of Credit Fees"). All such charges shall be deemed earned in
full on the date when the same are due and payable hereunder and shall not be
subject to rebate or proration upon the termination of this Agreement for any
reason. Any such charge in effect at the time of a particular transaction shall
be the charge for that transaction, notwithstanding any subsequent change in the
Issuer's prevailing charges for that type of transaction. All Letter of Credit
Fees payable hereunder shall be deemed earned in full on the date when the same
are due and payable hereunder and shall not be subject to rebate or proration
upon the termination of this Agreement for any reason.

                  Upon request of the Agent following the occurrence of an Event
of Default, Borrowers will cause cash to be deposited and maintained in an
account with Agent, as cash collateral, in an amount equal to one hundred and
five percent (105%) of the outstanding Letters of Credit, and each Borrower
hereby irrevocably authorizes Agent, in its discretion, on such Borrower's
behalf and in such Borrower's name, to open such an account and to make and
maintain deposits therein, or in an account opened by such Borrower, in the
amounts required to be made by such Borrower, out of the proceeds of Receivables
or other Collateral or out of any other funds of such Borrower coming into any
Lender's possession at any time. Agent will invest such cash collateral (less
applicable reserves) in such short-term money-market items as to which Agent and
such Borrower mutually agree and the net return on such investments shall be
credited to such account and constitute additional cash collateral. No Borrower
may withdraw amounts credited to any such account except upon payment and
performance in full of all Obligations and termination of this Agreement.

         3.3.     Facility Fee. If, for any month during the Term, the average
daily unpaid balance of the sum of the Revolving Advances plus Letters of Credit
outstanding for each day of such month does not equal the Maximum Revolving
Advance Amount, then Borrowers shall pay to Agent for the ratable benefit of
Lenders a fee at a rate equal to the applicable facility fee per annum set forth
on Schedule 1.2(a) under the heading "Facility Fee" on the amount by which the
Maximum Revolving Advance Amount exceeds such average daily unpaid balance of
Revolving Advances plus Letters of Credit outstanding. Such fee shall be payable
to Agent in arrears on each January 1, April 1, July 1 and October 1.

         3.4.     [Intentionally Omitted.]

         3.5.     Computation of Interest and Fees. Interest and fees hereunder
shall be computed on the basis of a year of 365 or 366 days, as the case may be,
and for the actual number of days

                                      -28-
<PAGE>

elapsed. If any payment to be made hereunder becomes due and payable on a day
other than a Business Day, the due date thereof shall be extended to the next
succeeding Business Day and interest thereon shall be payable at the applicable
Revolving Interest Rate during such extension.

         3.6.     Maximum Charges. In no event whatsoever shall interest and
other charges charged hereunder exceed the highest rate permissible under law.
In the event interest and other charges as computed hereunder would otherwise
exceed the highest rate permitted under law, such excess amount shall be first
applied to any unpaid principal balance owed by Borrowers, and if the then
remaining excess amount is greater than the previously unpaid principal balance,
Lenders shall promptly refund such excess amount to Borrowers and the provisions
hereof shall be deemed amended to provide for such permissible rate.

         3.7.     Increased Costs. In the event that any applicable law, treaty
or governmental regulation, or any change therein or in the interpretation or
application thereof, or compliance by any Lender (for purposes of this Section
3.7, the term "Lender" shall include Agent or any Lender and any corporation or
bank controlling Agent or any Lender) and the office or branch where Agent or
any Lender (as so defined) makes or maintains any Eurodollar Rate Loans with any
request or directive (whether or not having the force of law) from any central
bank or other financial, monetary or other authority, shall:

                  (a)      subject Agent or any Lender to any tax of any kind
whatsoever with respect to this Agreement or any Other Document or change the
basis of taxation of payments to Agent or any Lender of principal, fees,
interest or any other amount payable hereunder or under any Other Documents
(except for changes in the rate of tax on the overall net income of Agent or any
Lender by the jurisdiction in which it maintains its principal office);

                  (b)      impose, modify or hold applicable any reserve,
special deposit, assessment or similar requirement against assets held by, or
deposits in or for the account of, advances or loans by, or other credit
extended by, any office of Agent or any Lender, including (without limitation)
pursuant to Regulation D of the Board of Governors of the Federal Reserve
System; or

                  (c)      impose on Agent or any Lender or the London interbank
Eurodollar market any other condition with respect to this Agreement or any
Other Document;

and the result of any of the foregoing is to increase the cost to Agent or any
Lender of making, renewing or maintaining its Advances hereunder by an amount
that Agent or such Lender deems to be material or to reduce the amount of any
payment (whether of principal, interest or otherwise) in respect of any of the
Advances by an amount that Agent or such Lender reasonably deems to be material,
then, in any case Borrowers shall promptly pay Agent or such Lender, upon its
demand, such additional amount as will compensate Agent or such Lender for such
additional cost or such reduction, as the case may be, provided that the
foregoing shall not apply to increased costs which are reflected in the
Eurodollar Rate. Agent or such Lender shall certify the amount of such
additional cost or reduced amount to Borrowers, and such certification shall be
conclusive absent manifest error.

                                     -29-
<PAGE>

         3.8.     Basis For Determining Interest Rate Inadequate or Unfair. In
the event that Agent or any Lender shall have reasonably determined that:

                  (a)      reasonable means do not exist for ascertaining the
Eurodollar Rate for any Interest Period;

                  (b)      Dollar deposits in the relevant amount and for the
relevant maturity are not available in the London interbank Eurodollar market,
with respect to an outstanding Eurodollar Rate Loan, a proposed Eurodollar Rate
Loan, or a proposed conversion of a Domestic Rate Loan into a Eurodollar Rate
Loan,

then Agent shall give Borrowing Agent prompt written, telephonic or telegraphic
notice of such determination. If such notice is given, (i) any such requested
Eurodollar Rate Loan shall be made as a Domestic Rate Loan, unless Borrowing
Agent shall notify Agent no later than 10:00 a.m. (New York City time) two (2)
Business Days prior to the date of such proposed borrowing, that its request for
such borrowing shall be cancelled or made as an unaffected type of Eurodollar
Rate Loan, (ii) any Domestic Rate Loan or Eurodollar Rate Loan which was to have
been converted to an affected type of Eurodollar Rate Loan shall be continued as
or converted into a Domestic Rate Loan, or, if Borrowing Agent shall notify
Agent, no later than 10:00 a.m. (New York City time) two (2) Business Days prior
to the proposed conversion, shall be maintained as an unaffected type of
Eurodollar Rate Loan, and (iii) any outstanding affected Eurodollar Rate Loans
shall be converted into a Domestic Rate Loan, or, if Borrowing Agent shall
notify Agent, no later than 10:00 a.m. (New York City time) two (2) Business
Days prior to the last Business Day of the then current Interest Period
applicable to such affected Eurodollar Rate Loan, shall be converted into an
unaffected type of Eurodollar Rate Loan, on the last Business Day of the then
current Interest Period for such affected Eurodollar Rate Loans. Until such
notice has been withdrawn, Lenders shall have no obligation to make an affected
type of Eurodollar Rate Loan or maintain outstanding affected Eurodollar Rate
Loans and no Borrower shall have the right to convert a Domestic Rate Loan or an
unaffected type of Eurodollar Rate Loan into an affected type of Eurodollar Rate
Loan.

         3.9.     Capital Adequacy.

                  (a)      In the event that Agent or any Lender shall have
determined that any applicable law, rule, regulation or guideline regarding
capital adequacy, or any change therein, or any change in the interpretation or
administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by Agent or any Lender (for purposes of this Section 3.9, the term "Lender"
shall include Agent or any Lender and any corporation or bank controlling Agent
or any Lender) and the office or branch where Agent or any Lender (as so
defined) makes or maintains any Eurodollar Rate Loans with any request or
directive regarding capital adequacy (whether or not having the force of law) of
any such authority, central bank or comparable agency, has or would have the
effect of reducing the rate of return on Agent or any Lender's capital as a
consequence of its obligations hereunder to a level below that which Agent or
such Lender could have achieved but for such adoption, change or compliance
(taking into consideration Agent's and each Lender's policies with respect to
capital adequacy) by an amount deemed by Agent or any Lender to be material,
then, from time to time, Borrowers shall pay upon demand to Agent or

                                     -30-
<PAGE>

such Lender such additional amount or amounts as will compensate Agent or such
Lender for such reduction. In determining such amount or amounts, Agent or such
Lender may use any reasonable averaging or attribution methods. The protection
of this Section 3.9 shall be available to Agent and each Lender regardless of
any possible contention of invalidity or inapplicability with respect to the
applicable law, regulation or condition.

                  (b)      A certificate of Agent or such Lender setting forth
such amount or amounts as shall be necessary to compensate Agent or such Lender
with respect to Section 3.9(a) hereof when delivered to Borrowers shall be
conclusive absent manifest error.

         3.10.    Gross Up for Taxes. If any Borrower shall be required by
Applicable Law to withhold or deduct any taxes from or in respect of any sum
payable under this Agreement or any of the Other Documents, (a) the sum payable
to Agent or such Lender shall be increased as may be necessary so that, after
making all required withholding or deductions, Agent or such Lender (as the case
may be) receives an amount equal to the sum it would have received had no such
withholding or deductions been made, (b) such Borrower shall make such
withholding or deductions, and (c) such Borrower shall pay the full amount
withheld or deducted to the relevant taxation authority or other authority in
accordance with Applicable Law.

         3.11.    Withholding Tax Exemption. Each Lender or assignee or
participant of a Lender that is not incorporated under the Laws of the United
States of America or a state thereof (and, upon the written request of Agent,
each other Lender or assignee or participant of a Lender) agrees that it will
deliver to each Borrower and Agent two (2) duly completed appropriate valid
Withholding Certificates (as defined under Section 1.1441-1(c)(16) of the Income
Tax Regulations (the "Regulations")) certifying its status (i.e. U.S. or foreign
person) and, if appropriate, making a claim of reduced, or exemption from, U.S.
withholding tax on the basis of an income tax treaty or an exemption provided by
the Code. The term "Withholding Certificate" means a Form W-9; a Form W-8BEN; a
Form W-8ECI; a Form W-8IMY and the related statements and certifications as
required under Section 1.1441-1(e)(2) and/or (3) of the Regulations; a statement
described in Section 1.871-14(c)(2)(v) of the Regulations; or any other
certificates under the Code or Regulations that certify or establish the status
of a payee or beneficial owner as a U.S. or foreign person. Each Lender,
assignee or participant required to deliver to each Borrower and Agent a
Withholding Certificate pursuant to the preceding sentence shall deliver such
valid Withholding Certificate as follows: (A) each Lender which is a party
hereto on the Closing Date shall deliver such valid Withholding Certificate at
least five (5) Business Days prior to the first date on which any interest or
fees are payable by any Borrower hereunder for the account of such Lender; (B)
each assignee or participant shall deliver such valid Withholding Certificate at
least five (5) Business Days before the effective date of such assignment or
participation (unless Agent in its sole reasonable discretion shall permit such
assignee or participant to deliver such valid Withholding Certificate less than
five (5) Business Days before such date in which case it shall be due on the
date specified by Agent). Each Lender, assignee or participant which so delivers
a valid Withholding Certificate further undertakes to deliver to each Borrower
and Agent two (2) additional copies of such Withholding Certificate (or a
successor form) on or before the date that such Withholding Certificate expires
or becomes obsolete or after the occurrence of any event requiring a change in
the most recent Withholding Certificate so delivered by it, and such amendments
thereto or extensions or renewals thereof as may be reasonably requested by any
Borrower or Agent. Notwithstanding the submission of a Withholding Certificate
claiming a

                                     -31-
<PAGE>

reduced rate of or exemption from U.S. withholding tax, Agent shall be entitled
to withhold United States federal income taxes at the full 30% withholding rate
if in its reasonable judgment it is required to do so under the due diligence
requirements imposed upon a withholding agent under Section 1.1441-7(b) of the
Regulations. Further, Agent is indemnified under Section 1.1461-1(e) of the
Regulations against any claims and demands of any Lender or assignee or
participant of a Lender for the amount of any tax it deducts and withholds in
accordance with regulations under Section 1441 of the Code.

                  Each Bank or assignee or participant of a Bank that is not
incorporated under the Laws of the United States of America or a state thereof
(and is not excepted from the certification requirement contained in Section 313
of the USA Patriot Act and the applicable regulations because it is both (i) an
affiliate of a depository institution or foreign bank that maintains a physical
presence in the United states or foreign county, and (ii) subject to supervision
by a banking authority regulating such affiliated depository institution or
foreign bank) shall deliver to the Agent the certification, or, if applicable,
recertification, certifying that such Bank is not a "shell" and certifying to
other matters as required by Section 313 of the USA Patriot Act and the
applicable regulations: (1) within 10 days after the Closing Date, and (2) as
such other times as are required under the USA Patriot Act.

IV.      COLLATERAL:  GENERAL TERMS

         4.1.     Security Interest in the Collateral. To secure the prompt
payment and performance to Agent and each Lender of the Obligations, each
Borrower hereby assigns, pledges and grants to Agent for its benefit and for the
ratable benefit of each Lender a continuing security interest in and to all of
its Collateral, whether now owned or existing or hereafter acquired or arising
and wheresoever located. Each Borrower shall mark its books and records as may
be necessary or appropriate to evidence, protect and perfect Agent's security
interest and shall cause its financial statements to reflect such security
interest. Each Borrower shall promptly provide Agent with written notice of all
commercial tort claims, such notice to contain the case title together with the
applicable court and a brief description of the claim(s). Upon delivery of each
such notice, such Borrower shall be deemed to hereby grant to Agent a security
interest and lien in and to such commercial tort claims and all proceeds
thereof.

         4.2.     Perfection of Security Interest. Each Borrower shall take all
action that may be necessary or desirable, or that Agent may request, so as at
all times to maintain the validity, perfection, enforceability and priority of
Agent's security interest in the Collateral or to enable Agent to protect,
exercise or enforce its rights hereunder and in the Collateral, including, but
not limited to, (i) immediately discharging all Liens other than Permitted
Encumbrances, (ii) obtaining landlords' or mortgagees' lien waivers, (iii)
delivering to Agent, endorsed or accompanied by such instruments of assignment
as Agent may specify, and stamping or marking, in such manner as Agent may
specify, any and all chattel paper, instruments, letters of credits and advices
thereof and documents evidencing or forming a part of the Collateral, (iv)
entering into warehousing, lockbox and other custodial arrangements satisfactory
to Agent, and (v) executing and delivering financing statements, control
agreements, instruments of pledge, mortgages, notices and assignments, in each
case in form and substance satisfactory to Agent, relating to the creation,
validity, perfection, maintenance or continuation of Agent's security interest
under the Uniform Commercial Code or other applicable law. Agent is hereby

                                     -32-
<PAGE>

authorized to file financing statements without the signature of any Borrower in
accordance with the Uniform Commercial Code as adopted in the State of Ohio from
time to time. By its signature hereto, each Borrower hereby authorizes Agent to
file against such Borrower, one or more financing, continuation, or amendment
statements pursuant to the Uniform Commercial Code in form and substance
satisfactory to Agent (which statements may have a description of collateral
which is broader than that set forth herein). All charges, expenses and fees
Agent may incur in doing any of the foregoing, and any local taxes relating
thereto, shall be charged to Borrowers' Account as a Revolving Advance of a
Domestic Rate Loan and added to the Obligations, or, at Agent's option, shall be
paid to Agent for the ratable benefit of Lenders immediately upon demand.

         4.3.     Disposition of Collateral. Each Borrower will safeguard and
protect all Collateral for Agent's general account and make no disposition
thereof whether by sale, lease or otherwise except (a) the sale of Inventory in
the ordinary course of business, (b) the sale of Receivables in accordance with
the terms of the Accounts Sales Agreement, and (c) the disposition or transfer
for cash or cash equivalents of obsolete and worn-out Equipment in the ordinary
course of business during any fiscal year having an aggregate fair market value
of not more than $5,000,000 and only to the extent that (i) the proceeds of any
such disposition are used to acquire replacement Equipment which is subject to
Agent's first priority security interest, or (ii) the proceeds of which are
remitted to Agent to be applied to the Revolving Advances.

         4.4.     Preservation of Collateral. In addition to the rights and
remedies set forth in Section 11.1 hereof, Agent: (a) may at any time take such
steps as Agent deems necessary to protect Agent's interest in and to preserve
the Collateral, including the hiring of such security guards or the placing of
other security protection measures as Agent may deem appropriate; (b) may employ
and maintain at any of any Borrower's premises a custodian who shall have full
authority to do all acts necessary to protect Agent's interests in the
Collateral; (c) may lease warehouse facilities to which Agent may move all or
part of the Collateral; (d) may use any Borrower's owned or leased lifts,
hoists, trucks and other facilities or equipment for handling or removing the
Collateral; and (e) shall have, and is hereby granted, a right of ingress and
egress to the places where the Collateral is located, and may proceed over and
through any of Borrower's owned or leased property. Each Borrower shall
cooperate fully with all of Agent's efforts to preserve the Collateral and will
take such actions to preserve the Collateral as Agent may direct. All of Agent's
expenses of preserving the Collateral, including any expenses relating to the
bonding of a custodian, shall be charged to Borrowers' Account as a Revolving
Advance of a Domestic Rate Loan and added to the Obligations.

         4.5.     Ownership of Collateral. With respect to the Collateral, at
the time the Collateral becomes subject to Agent's security interest: (a) each
Borrower shall be the sole owner of and fully authorized and able to sell,
transfer, pledge and/or grant a first priority security interest in each and
every item of the its respective Collateral to Agent; and, except for Permitted
Encumbrances the Collateral shall be free and clear of all Liens and
encumbrances whatsoever; (b) each document and agreement executed by each
Borrower or delivered to Agent or any Lender in connection with this Agreement
shall be true and correct in all respects; (c) all signatures and endorsements
of each Borrower that appear on such documents and agreements shall be genuine
and each Borrower shall have full capacity to execute same; and (d) each
Borrower's Equipment and Inventory shall be located at or in transit to the
locations set forth on

                                     -33-
<PAGE>

Schedule 4.5 and shall not be removed from such location(s) without the prior
written consent of Agent except with respect to (i) the sale of Inventory in the
ordinary course of business, (ii) transfers of Equipment and Inventory between
such locations, and (iii) disposition of Equipment to the extent permitted in
Section 4.3 hereof.

         4.6.     Defense of Agent's and Lenders' Interests. Until (a) payment
and performance in full of all of the Obligations and (b) termination of this
Agreement, Agent's interests in the Collateral shall continue in full force and
effect. During such period no Borrower shall, without Agent's prior written
consent, pledge, sell (except Inventory in the ordinary course of business and
Equipment to the extent permitted in Section 4.3 hereof), assign, transfer,
create or suffer to exist a Lien upon or encumber or allow or suffer to be
encumbered in any way except for Permitted Encumbrances, any part of the
Collateral. Each Borrower shall defend Agent's interests in the Collateral
against any and all Persons whatsoever. At any time following demand by Agent
for payment of all Obligations pursuant to Section 11.1, Agent shall have the
right to take possession of the indicia of the Collateral and the Collateral in
whatever physical form contained, including without limitation: labels,
stationery, documents, instruments and advertising materials. If Agent exercises
this right to take possession of the Collateral, Borrowers shall, upon demand,
assemble it in the best manner possible and make it available to Agent at a
place reasonably convenient to Agent. In addition, with respect to all
Collateral, Agent and Lenders shall be entitled to all of the rights and
remedies set forth herein and further provided by the Uniform Commercial Code or
other applicable law. Each Borrower shall, and Agent may, at its option,
instruct all suppliers, carriers, forwarders, warehousers or others receiving or
holding cash, checks, Inventory, documents or instruments in which Agent holds a
security interest to deliver same to Agent and/or subject to Agent's order and
if they shall come into any Borrower's possession, they, and each of them, shall
be held by such Borrower in trust as Agent's trustee, and such Borrower will
immediately deliver them to Agent in their original form together with any
necessary endorsement.

         4.7.     Books and Records. Each Borrower shall (a) keep proper books
of record and account in which full, true and correct entries will be made of
all dealings or transactions of or in relation to its business and affairs; (b)
set up on its books accruals with respect to all taxes, assessments, charges,
levies and claims; and (c) on a reasonably current basis set up on its books,
from its earnings, allowances against doubtful Receivables, advances and
investments and all other proper accruals (including without limitation by
reason of enumeration, accruals for premiums, if any, due on required payments
and accruals for depreciation, obsolescence, or amortization of properties),
which should be set aside from such earnings in connection with its business.
All determinations pursuant to this subsection shall be made in accordance with,
or as required by, GAAP consistently applied in the opinion of such independent
public accountant as shall then be regularly engaged by Borrowers.

         4.8.     Financial Disclosure. Each Borrower hereby irrevocably
authorizes and directs all accountants and auditors employed by such Borrower at
any time during the Term to exhibit and deliver to Agent and each Lender copies
of any of any Borrower's financial statements, trial balances or other
accounting records of any sort in the accountant's or auditor's possession, and
to disclose to Agent and each Lender any information such accountants may have
concerning such Borrower's financial status and business operations. Each
Borrower hereby authorizes all federal, state and municipal authorities to
furnish to Agent and each Lender copies of reports or

                                      -34-
<PAGE>

examinations relating to such Borrower, whether made by such Borrower or
otherwise; however, Agent and each Lender will attempt to obtain such
information or materials directly from such Borrower prior to obtaining such
information or materials from such accountants or such authorities.

         4.9.     Compliance with Laws. Each Borrower shall comply in all
material respects with all acts, rules, regulations and orders of any
legislative, administrative or judicial body or official applicable to its
respective Collateral or any part thereof or to the operation of such Borrower's
business the non-compliance with which could reasonably be expected to have a
Material Adverse Effect. Each Borrower may, however, contest or dispute any
acts, rules, regulations, orders and directions of those bodies or officials in
any reasonable manner, provided that any related Lien is inchoate or stayed and
sufficient reserves are established to the reasonable satisfaction of Agent to
protect Agent's Lien on or security interest in the Collateral. The Collateral
at all times shall be maintained in accordance with the requirements of all
insurance carriers which provide insurance with respect to the Collateral so
that such insurance shall remain in full force and effect.

         4.10.    Inspection of Premises. At all reasonable times Agent and each
Lender shall have full access to and the right to audit, check, inspect and make
abstracts and copies from each Borrower's books, records, audits, correspondence
and all other papers relating to the Collateral and the operation of each
Borrower's business. Agent, any Lender and their agents may enter upon any of
each Borrower's premises at any time during business hours and at any other
reasonable time, and from time to time, for the purpose of inspecting the
Collateral and any and all records pertaining thereto and the operation of such
Borrower's business.

         4.11.    Insurance. Each Borrower shall bear the full risk of any loss
of any nature whatsoever with respect to the Collateral. At each Borrower's own
cost and expense in amounts and with carriers acceptable to Agent, each Borrower
shall (a) keep all its insurable properties and properties in which each
Borrower has an interest insured against the hazards of fire, flood, sprinkler
leakage, those hazards covered by extended coverage insurance and such other
hazards, and for such amounts, as is customary in the case of companies engaged
in businesses similar to such Borrower's including, without limitation, business
interruption insurance; (b) maintain a bond in such amounts as is customary in
the case of companies engaged in businesses similar to such Borrower insuring
against larceny, embezzlement or other criminal misappropriation of insured's
officers and employees who may either singly or jointly with others at any time
have access to the assets or funds of such Borrower either directly or through
authority to draw upon such funds or to direct generally the disposition of such
assets; (c) maintain public and product liability insurance against claims for
personal injury, death or property damage suffered by others; (d) maintain all
such worker's compensation or similar insurance as may be required under the
laws of any state or jurisdiction in which such Borrower is engaged in business;
(e) furnish Agent with (i) copies of all policies and evidence of the
maintenance of such policies by the renewal thereof at least thirty (30) days
before any expiration date, and (ii) appropriate loss payable endorsements in
form and substance satisfactory to Agent, naming Agent as a co-insured and loss
payee as its interests may appear with respect to all insurance coverage
referred to in clauses (a), and (c) above, and providing (A) that all proceeds
thereunder shall be payable to Agent, (B) no such insurance shall be affected by
any act or neglect of the insured or owner of the property described in such
policy, and (C) that such policy and loss payable clauses may not

                                      -35-
<PAGE>

be cancelled, amended or terminated unless at least thirty (30) days' prior
written notice is given to Agent. In the event of any loss thereunder, the
carriers named therein hereby are directed by Agent and the applicable Borrower
to make payment for such loss to Agent and not to such Borrower and Agent
jointly. If any insurance losses are paid by check, draft or other instrument
payable to any Borrower and Agent jointly, Agent may endorse such Borrower's
name thereon and do such other things as Agent may deem advisable to reduce the
same to cash. Agent is hereby authorized to adjust and compromise claims under
insurance coverage referred to in clauses (a) and (b) above. All loss recoveries
received by Agent upon any such insurance may be applied to the Obligations, in
such order as Agent in its sole discretion shall determine. Any surplus shall be
paid by Agent to Borrowers or applied as may be otherwise required by law. Any
deficiency thereon shall be paid by Borrowers to Agent, on demand. Anything
hereinabove to the contrary notwithstanding, and subject to the fulfillment of
the conditions set forth below, Agent shall remit to Borrowers insurance
proceeds received by Agent during any calendar year under insurance policies
procured and maintained by Borrowers which insure Borrowers' insurable
properties to the extent such insurance proceeds do not exceed $1,000,000 in the
aggregate during such calendar year or $500,000 per occurrence. In the event the
amount of insurance proceeds received by Agent for any occurrence exceeds
$500,000, then Agent shall not be obligated to remit the insurance proceeds to
Borrowers unless Borrowers shall provide Agent with evidence reasonably
satisfactory to Agent that the insurance proceeds will be used by Borrowers to
repair, replace or restore the insured property which was the subject of the
insurable loss. In the event Borrowers have previously received (or, after
giving effect to any proposed remittance by Agent to Borrowers would receive)
insurance proceeds which equal or exceed $1,000,000 in the aggregate during any
calendar year, then Agent may, in its sole discretion, either remit the
insurance proceeds to Borrowers upon Borrowers providing Agent with evidence
reasonably satisfactory to Agent that the insurance proceeds will be used by
Borrowers to repair, replace or restore the insured property which was the
subject of the insurable loss, or apply the proceeds to the Obligations, as
aforesaid. The agreement of Agent to remit insurance proceeds in the manner
above provided shall be subject in each instance to satisfaction of each of the
following conditions: (x) No Event of Default or Default shall then have
occurred, and (y) Borrowers shall use such insurance proceeds to repair, replace
or restore the insurable property which was the subject of the insurable loss
and for no other purpose.

         4.12.    Failure to Pay Insurance. If any Borrower fails to obtain
insurance as hereinabove provided, or to keep the same in force, Agent, if Agent
so elects, may obtain such insurance and pay the premium therefor on behalf of
such Borrower, and charge Borrowers' Account therefor as a Revolving Advance of
a Domestic Rate Loan and such expenses so paid shall be part of the Obligations.

         4.13.    Payment of Taxes. Each Borrower will pay, when due, all taxes,
assessments and other Charges lawfully levied or assessed upon such Borrower or
any of the Collateral including, without limitation, real and personal property
taxes, assessments and charges and all franchise, income, employment, social
security benefits, withholding, and sales taxes, except to the extent that such
Borrower is contesting or disputing such taxes, assessments or Charges in good
faith, by protest, administrative or judicial appeal or similar proceedings all
conducted in an expeditious manner, provided that any related tax lien is stayed
and sufficient reserves are established to the reasonable satisfaction of the
Agent to protect the security interest and Liens on the Collateral in favor of
the Agent for the benefit of the Lenders. If any tax by any

                                      -36-
<PAGE>

governmental authority is or may be imposed on or as a result of any transaction
between any Borrower and Agent or any Lender which Agent or any Lender may be
required to withhold or pay or if any taxes, assessments, or other Charges
remain unpaid after the date fixed for their payment, or if any claim shall be
made which, in Agent's or any Lender's reasonable opinion, may possibly create a
valid Lien on the Collateral, Agent may without notice to Borrowers pay the
taxes, assessments or other Charges and each Borrower hereby indemnifies and
holds Agent and each Lender harmless in respect thereof. Agent will not pay any
taxes, assessments or Charges to the extent that any Borrower has contested or
disputed those taxes, assessments or Charges in good faith, by expeditious
protest, administrative or judicial appeal or similar proceeding provided that
any related tax lien is stayed and sufficient reserves are established to the
reasonable satisfaction of Agent to protect Agent's security interest in or Lien
on the Collateral. The amount of any payment by Agent under this Section 4.13
shall be charged to Borrowers' Account as a Revolving Advance of a Domestic Rate
Loan and added to the Obligations and, until Borrowers shall furnish Agent with
an indemnity therefor (or supply Agent with evidence satisfactory to Agent that
due provision for the payment thereof has been made), Agent may hold without
interest any balance standing to Borrowers' credit and Agent shall retain its
security interest in any and all Collateral held by Agent.

         4.14.    Payment of Leasehold Obligations. Each Borrower shall at all
times pay, when and as due, its rental obligations under all leases under which
it is a tenant, and shall otherwise comply, in all material respects, with all
other terms of such leases and keep them in full force and effect and, at
Agent's request will provide evidence of having done so, except to the extent
that such Borrower is contesting or disputing a rental obligation or other lease
term in good faith in an expeditious manner, provided that sufficient reserves
are established to the reasonable satisfaction of the Agent to protect the
security interest and Liens on the Collateral in favor of the Agent for the
benefit of the Lenders.

         4.15.    Receivables.

                  (a)      Nature of Receivables. Each of the Receivables shall
be a bona fide and valid account representing a bona fide indebtedness incurred
by the Customer therein named, for a fixed sum as set forth in the invoice
relating thereto (provided immaterial or unintentional invoice errors shall not
be deemed to be a breach hereof) with respect to an absolute sale or lease and
delivery of goods upon stated terms of a Borrower, or work, labor or services
theretofore rendered by a Borrower as of the date each Receivable is created.
Same shall be due and owing in accordance with the applicable Borrower's
standard terms of sale without dispute, setoff or counterclaim except as may be
stated on the accounts receivable schedules delivered by Borrowers to Agent.

                  (b)      Solvency of Customers. Each Customer, to the best of
each Borrower's knowledge, as of the date each Receivable is created, is and
will be solvent and able to pay all Receivables on which the Customer is
obligated in full when due or with respect to such Customers of any Borrower who
are not solvent such Borrower has set up on its books and in its financial
records bad debt reserves adequate to cover such Receivables.

                  (c)      Locations of Borrower. Each Borrower's chief
executive office is located at the addresses set forth on Schedule 4.15(c)
hereto. Until written notice is given to Agent by

                                     -37-
<PAGE>

Borrowing Agent of any other office at which any Borrower keeps its records
pertaining to Receivables, all such records shall be kept at such executive
office.

                  (d)      Collection of Receivables. Until any Borrower's
authority to do so is terminated by Agent (which notice Agent may give at any
time following the occurrence of an Event of Default or a Default or when Agent
in its sole discretion deems it to be in Lenders' best interest to do so), each
Borrower will, at such Borrower's sole cost and expense, but on Agent's behalf
and for Agent's account, collect as Agent's property and in trust for Agent all
amounts received on Receivables, and shall not commingle such collections with
any Borrower's funds or use the same except to pay Obligations. Subject to
Section 4.15(h) hereof and the terms of the Intercreditor Agreement, each
Borrower shall, upon request, deliver to Agent, or deposit in the Blocked
Account, in original form and on the date of receipt thereof, all checks,
drafts, notes, money orders, acceptances, cash and other evidences of
Indebtedness.

                  (e)      Notification of Assignment of Receivables. At any
time following the occurrence of an Event of Default or a Default and subject to
the terms of the Intercreditor Agreement, Agent shall have the right to send
notice of the assignment of, and Agent's security interest in, the Receivables
to any and all Customers or any third party holding or otherwise concerned with
any of the Collateral. Following such notice and subject to the terms of the
Intercreditor Agreement, Agent shall have the sole right to collect the
Receivables, take possession of the Collateral, or both. Agent's actual
collection expenses, including, but not limited to, stationery and postage,
telephone and telegraph, secretarial and clerical expenses and the salaries of
any collection personnel used for collection, may be charged to Borrowers'
Account and added to the Obligations.

                  (f)      Power of Agent to Act on Borrowers' Behalf. Subject
to the terms of the Intercreditor Agreement, Agent shall have the right to
receive, endorse, assign and/or deliver in the name of Agent or any Borrower any
and all checks, drafts and other instruments for the payment of money relating
to the Receivables, and each Borrower hereby waives notice of presentment,
protest and non-payment of any instrument so endorsed. Each Borrower hereby
constitutes Agent or Agent's designee as such Borrower's attorney with power (i)
to endorse such Borrower's name upon any notes, acceptances, checks, drafts,
money orders or other evidences of payment or Collateral; (ii) to sign such
Borrower's name on any invoice or bill of lading relating to any of the
Receivables, drafts against Customers, assignments and verifications of
Receivables; (iii) to send verifications of Receivables to any Customer; (iv) to
sign such Borrower's name on all financing statements or any other documents or
instruments deemed necessary or appropriate by Agent to preserve, protect, or
perfect Agent's interest in the Collateral and to file same; (v) to demand
payment of the Receivables; (vi) to enforce payment of the Receivables by legal
proceedings or otherwise; (vii) to exercise all of Borrowers' rights and
remedies with respect to the collection of the Receivables and any other
Collateral; (viii) to settle, adjust, compromise, extend or renew the
Receivables; (ix) to settle, adjust or compromise any legal proceedings brought
to collect Receivables; (x) to prepare, file and sign such Borrower's name on a
proof of claim in bankruptcy or similar document against any Customer; (xi) to
prepare, file and sign such Borrower's name on any notice of Lien, assignment or
satisfaction of Lien or similar document in connection with the Receivables; and
(xii) to do all other acts and things necessary to carry out this Agreement. All
acts of said attorney or designee are hereby ratified and approved, and said
attorney or designee shall not be liable for any acts of

                                      -38-
<PAGE>

omission or commission nor for any error of judgment or mistake of fact or of
law, unless done maliciously or with gross (not mere) negligence; this power
being coupled with an interest is irrevocable while any of the Obligations
remain unpaid. Agent shall have the right at any time following the occurrence
of an Event of Default or Default, to change the address for delivery of mail
addressed to any Borrower to such address as Agent may designate and to receive,
open and dispose of all mail addressed to any Borrower.

                  (g)      No Liability. Neither Agent nor any Lender shall,
under any circumstances or in any event whatsoever, have any liability for any
error or omission or delay of any kind occurring in the settlement, collection
or payment of any of the Receivables or any instrument received in payment
thereof, or for any damage resulting therefrom. Following the occurrence of an
Event of Default or Default Agent may, without notice or consent from any
Borrower, sue upon or otherwise collect, extend the time of payment of,
compromise or settle for cash, credit or upon any terms any of the Receivables
or any other securities, instruments or insurance applicable thereto and/or
release any obligor thereof. Agent is authorized and empowered to accept
following the occurrence of an Event of Default or Default the return of the
goods represented by any of the Receivables, without notice to or consent by any
Borrower, all without discharging or in any way affecting any Borrower's
liability hereunder.

                  (h)      Establishment of a Lockbox Account, Dominion Account.
Subject to the terms of the Intercreditor Agreement, all proceeds of Collateral
shall, at the direction of Agent, be deposited by Borrowers into a lockbox
account, dominion account or such other "blocked account" ("Blocked Accounts")
as Agent may require pursuant to an arrangement with such bank as may be
selected by Borrowers and be acceptable to Agent. Prior to the occurrence of an
Event of Default, proceeds of sales of inventory which are collected at the
service center locations of the Borrowers shall not be required to be deposited
into the Blocked Accounts until each such service has collected $5,000 since the
time of its last deposit to the Blocked Accounts; provided however, in the event
that the aggregate collected funds at all service center locations exceed
$500,000 at any one time, Borrowers shall upon the request of the Agent cause
such funds in excess of $500,000 to be transferred to the Blocked Accounts.
Borrowers shall issue to any such bank, an irrevocable letter of instruction
directing said bank to transfer such funds so deposited to Agent, either to any
account maintained by Agent at said bank or by wire transfer to appropriate
account(s) of Agent. All funds deposited in such Blocked Account shall
immediately become the property of Agent and Borrowers shall obtain the
agreement by such bank to waive any offset rights against the funds so
deposited. Neither Agent nor any Lender assumes any responsibility for such
blocked account arrangement, including without limitation, any claim of accord
and satisfaction or release with respect to deposits accepted by any bank
thereunder. Alternatively, Agent may establish depository accounts ("Depository
Accounts") in the name of Agent at a bank or banks for the deposit of such funds
and Borrowers shall deposit all proceeds of Collateral or cause same to be
deposited, in kind, in such Depository Accounts of Agent in lieu of depositing
same to the Blocked Accounts. Notwithstanding the foregoing, the requirements of
this Section 4.15(h) shall not be applicable until such time after the Closing
Date as: (i) Undrawn Availability is less than $20,000,000 on any date during
the period from April 1 through November 30 in any year, (ii) Undrawn
Availability is less than $10,000,000 on any date during the period from
December 1 through March 31 in any year, or (iii) an Event of Default has
occurred.

                                     -39-
<PAGE>

                  (i)      Adjustments. Subsequent the occurrence of an Event of
Default, no Borrower will, without Agent's consent, compromise or adjust any
Receivables (or extend the time for payment thereof) or accept any returns of
merchandise or grant any additional discounts, allowances or credits thereon
except for those compromises, adjustments, returns, discounts, credits and
allowances as have been heretofore customary in the business of such Borrower.

         4.16.    Inventory. To the extent Inventory held for sale or lease has
been produced by any Borrower, it has been and will be produced by such Borrower
in accordance with the Federal Fair Labor Standards Act of 1938, as amended, and
all rules, regulations and orders thereunder.

         4.17.    Maintenance of Equipment. The Equipment shall be maintained in
good operating condition and repair (reasonable wear and tear excepted) and all
necessary replacements of and repairs thereto shall be made so that the value
and operating efficiency of the Equipment shall be maintained and preserved.
Borrower shall use and operate the Equipment in material compliance with all
Applicable Law. Each Borrower shall have the right to sell Equipment to the
extent set forth in Section 4.3 hereof.

         4.18.    Exculpation of Liability. Nothing herein contained shall be
construed to constitute Agent or any Lender as any Borrower's agent for any
purpose whatsoever, nor shall Agent or any Lender be responsible or liable for
any shortage, discrepancy, damage, loss or destruction of any part of the
Collateral wherever the same may be located and regardless of the cause thereof.
Neither Agent nor any Lender, whether by anything herein or in any assignment or
otherwise, assume any of any Borrower's obligations under any contract or
agreement assigned to Agent or such Lender, and neither Agent nor any Lender
shall be responsible in any way for the performance by any Borrower of any of
the terms and conditions thereof.

         4.19.    Environmental Matters. (a) Borrowers shall ensure that the
Real Property and Leasehold Interests are in material compliance with all
Environmental Laws and they shall not place or permit to be placed any Hazardous
Substances on any Real Property or Leasehold Interests except as permitted by
applicable law or appropriate governmental authorities.

                  (b)      Lesco has established and shall maintain its
"Environmental Safety Compliance Policy" to assure and monitor continued
compliance with all applicable Environmental Laws.

                  (c)      Borrowers shall (i) employ in connection with the use
of the Real Property and Leasehold Interests appropriate technology necessary to
maintain material compliance with any applicable Environmental Laws and (ii)
dispose of any and all Hazardous Waste generated at the Real Property and
Leasehold Interests only at facilities, and transport with carriers, that
maintain valid permits under RCRA and any other applicable Environmental Laws.
Borrowers shall use their best efforts to obtain certificates of disposal, such
as hazardous waste manifest receipts, from all treatment, transport, storage or
disposal facilities or operators employed by Borrowers in connection with the
transport or disposal of any Hazardous Waste generated at the Real Property or
Leasehold Interests.

                                      -40-
<PAGE>

                  (d)      In the event any Borrower obtains, gives or receives
notice of any Release or threat of Release of reportable quantities of any
Hazardous Substances at the Real Property or Leasehold Interests (any such event
being hereinafter referred to as a "Hazardous Discharge") or receives any notice
of violation, request for information or notification that it is potentially
responsible for investigation or cleanup of environmental conditions at the Real
Property or Leasehold Interests, demand letter or complaint, order, citation, or
other written notice with regard to any Hazardous Discharge or violation of
Environmental Laws affecting the Real Property, Leasehold Interests or any
Borrower's interest therein (any of the foregoing is referred to herein as an
"Environmental Complaint") from any Person, including any state agency
responsible in whole or in part for environmental matters in the state in which
the Real Property or Leasehold Interests are located or the United States
Environmental Protection Agency (any such person or entity hereinafter the
"Authority"), then Borrowing Agent shall, within five (5) Business Days, give
written notice of same to Agent detailing facts and circumstances of which any
Borrower is aware giving rise to the Hazardous Discharge or Environmental
Complaint. Notwithstanding the foregoing, notice shall not be required to be
given with respect to demands, complaints or notices of private
(non-governmental) parties which are not material. Such information is to be
provided to allow Agent to protect its security interest in the Real Property
and Leasehold Interests and the Collateral and is not intended to create nor
shall it create any obligation upon Agent or any Lender with respect thereto.

                  Borrowers shall promptly forward to Agent copies of all
documents and reports concerning a Hazardous Discharge at the Real Property or
Leasehold Interests subject to the Mortgages that any Borrower is required to
file under any Environmental Laws. Such information is to be provided solely to
allow Agent to protect Agent's security interest in the Real Property subject to
the Mortgages and the Collateral.

                  (e)      Borrowers shall promptly forward to Agent copies of
any written request for information, notification of potential liability, demand
letter relating to potential responsibility with respect to the investigation or
cleanup of Hazardous Substances at any other site owned, operated or used by any
Borrower to dispose of Hazardous Substances and shall continue to forward copies
of correspondence between any Borrower and the Authority regarding such claims
to Agent until the claim is settled.

                  (f)      Borrowers shall timely respond to any Hazardous
Discharge or Environmental Complaint and take all necessary action in order to
safeguard the health of any Person and to avoid subjecting the Collateral or
Real Property and Leasehold Interests subject to the Mortgages to any Lien. If
any Borrower shall fail to respond promptly to any Hazardous Discharge or
Environmental Complaint or any Borrower shall fail to comply with any of the
requirements of any applicable Environmental Laws in any material respect, Agent
on behalf of Lenders may, but without the obligation to do so, for the sole
purpose of protecting Agent's interest in Collateral: (A) give such notices or
(B) enter onto the Real Property or Leasehold Interests subject to the Mortgages
(or authorize third parties to enter onto such Real Property or Leasehold
Interests) and take such actions as Agent (or such third parties as directed by
Agent) reasonably deem necessary to clean up, remove, mitigate or otherwise deal
with any such Hazardous Discharge or Environmental Complaint. All reasonable
costs and expenses incurred by Agent and Lenders (or such third parties) in the
exercise of any such rights, including any sums paid in connection with any
judicial or administrative investigation or proceedings, fines

                                     -41-
<PAGE>

and penalties, together with interest thereon from the date expended at the
Default Rate for Domestic Rate Loans constituting Revolving Advances shall be
paid upon demand by Borrowers, and until paid shall be added to and become a
part of the Obligations secured by the Liens created by the terms of this
Agreement or any other agreement between Agent, any Lender and any Borrower.

                  (g)      Upon the written request of Agent in Agent's
reasonable discretion, Borrowers shall provide Agent, at Borrowers' expense,
with an environmental site assessment or environmental audit report prepared by
an environmental consultant acceptable to the Agent in its reasonable
discretion, to assess the existence of a Hazardous Discharge and the potential
costs in connection with abatement, cleanup and removal of any Hazardous
Substances found on, under, at or within the Real Property or Leasehold
Interests subject to the Mortgages. Any report or investigation of such
Hazardous Discharge proposed and in a form acceptable to an appropriate
Authority that is charged to oversee the clean-up of such Hazardous Discharge
shall be acceptable to Agent. If such estimates, individually or in the
aggregate, exceed $450,000, Agent shall have the right to require Borrowers to
post a bond, letter of credit or other security reasonably satisfactory to Agent
to secure payment of these costs and expenses.

                  (h)      Borrowers shall defend and indemnify Agent and
Lenders and hold Agent, Lenders and their respective employees, agents,
directors and officers harmless from and against all loss, liability, damage and
expense, claims, costs, fines and penalties, including reasonable attorney's
fees, suffered or incurred by Agent or Lenders under or on account of any
Environmental Laws, including, without limitation, the assertion of any Lien
thereunder, with respect to any Hazardous Discharge, the presence of any
Hazardous Substances affecting the Real Property, whether or not the same
originates or emerges from the Real Property or any contiguous real estate,
including any loss of value of the Real Property subject to the Mortgages as a
result of the foregoing except to the extent such loss, liability, damage and
expense is attributable to any Hazardous Discharge resulting from actions on the
part of Agent or any Lender. Borrowers' obligations under this Section 4.19
shall arise upon the discovery of the presence of any Hazardous Substances at
the Real Property, whether or not any federal, state, or local environmental
agency has taken or threatened any action in connection with the presence of any
Hazardous Substances. Borrowers' obligation and the indemnifications hereunder
shall survive the termination of this Agreement.

                  (i)      For purposes of Section 4.19 and 5.7, all references
to Real Property shall be deemed to include all of Borrowers' right, title and
interest in and to its owned and leased premises.

         4.20.    Financing Statements. Except as respects the financing
statements filed by Agent and the financing statements described on Schedule
1.2(p), no financing statement covering any of the Collateral or any proceeds
thereof is on file in any public office.

V.       REPRESENTATIONS AND WARRANTIES.

         Each Borrower represents and warrants as follows:

                                      -42-
<PAGE>

         5.1.     Authority. Each Borrower has full power, authority and legal
right to enter into this Agreement and the Other Documents and to perform all
its respective Obligations hereunder and thereunder. This Agreement and the
Other Documents constitute the legal, valid and binding obligation of such
Borrower enforceable against such Borrower in accordance with their terms,
except as such enforceability may be limited by any applicable bankruptcy,
insolvency, moratorium or similar laws affecting creditors' rights generally.
The execution, delivery and performance of this Agreement and of the Other
Documents (a) are within such Borrower's corporate or limited liability company
powers, have been duly authorized, are not in contravention of law or the terms
of such Borrower's by-laws, certificate of incorporation or other applicable
documents relating to such Borrower's formation or to the conduct of such
Borrower's business or of any material agreement or undertaking to which such
Borrower is a party or by which such Borrower is bound, and (b) will not
conflict with nor result in any breach in any of the provisions of or constitute
a default under or result in the creation of any Lien except Permitted
Encumbrances upon any asset of such Borrower under the provisions of any
agreement, charter document, instrument, by-law, or other instrument to which
such Borrower is a party or by which it or its property may be bound.

         5.2.     Formation and Qualification. (a) Each Borrower is duly
incorporated or organized and in good standing or full force and effect under
the laws of the state listed on Schedule 5.2(a) and is qualified to do business
and is in good standing or in full force and effect in the states listed on
Schedule 5.2(a) which constitute all states in which qualification and good
standing or full force and effect are necessary for such Borrower to conduct its
business and own its property and where the failure to so qualify could
reasonably be expected to have a Material Adverse Effect. Each Borrower has
delivered to Agent true and complete copies of its articles of incorporation and
by-laws or operating agreement and will promptly notify Agent of any amendment
or changes thereto.

                  (b)      The only Subsidiaries of each Borrower are listed on
Schedule 5.2(b).

         5.3.     Survival of Representations and Warranties. All
representations and warranties of such Borrower contained in this Agreement and
the Other Documents shall be true at the time of such Borrower's execution of
this Agreement and the Other Documents, and shall survive the execution,
delivery and acceptance thereof by the parties thereto and the closing of the
transactions described therein or related thereto.

         5.4.     Tax Returns. Each Borrower's federal tax identification number
is set forth on Schedule 5.4. Each Borrower has filed all federal, state and
local tax returns and other reports each is required by law to file and has paid
all taxes, assessments, fees and other governmental charges that are due and
payable, except to the extent that such Borrower is contesting or disputing such
taxes, assessments or Charges in good faith, by protest, administrative or
judicial appeal or similar proceedings all conducted in an expeditious manner,
provided that any related tax lien is stayed and sufficient reserves are
established to the reasonable satisfaction of the Agent to protect the security
interest and Liens on the Collateral in favor of the Agent for the benefit of
the Lenders. Federal, state and local income tax returns of each Borrower have
been examined and reported upon by the appropriate taxing authority or closed by
applicable statute and satisfied for all fiscal years prior to and including the
fiscal year ending December 31, 2002. The provision for taxes on the books of
each Borrower are adequate for all years not closed by

                                      -43-
<PAGE>

applicable statutes, and for its current fiscal year, and no Borrower has any
knowledge of any deficiency or additional assessment in connection therewith not
provided for on its books.

         5.5.     Financial Statements.

                  (a)      The pro forma balance sheet of Borrowers on a
consolidated basis, which is based on financial statements for the eleven months
ended November 30, 2003, taking into account pro forma adjustments related to
the consummation of the transactions contemplated under this Agreement and under
the Accounts Sales Agreement and the GE Program Agreement, (the "Pro Forma
Balance Sheet") furnished to Agent on the Closing Date reflects the consummation
of the transactions contemplated under this Agreement (the "Transactions") and
is accurate, complete and correct and fairly reflects the financial condition of
Borrowers on a consolidated basis as of the Closing Date after giving effect to
the Transactions, and has been prepared in accordance with GAAP, consistently
applied. The Pro Forma Balance Sheet has been certified as accurate, complete
and correct in all material respects by the Vice President and Chief Financial
Officer of LESCO. All financial statements referred to in this subsection
5.5(a), including the related schedules and notes thereto, have been prepared,
in accordance with GAAP, except as may be disclosed in such financial
statements.

                  (b)      The three year cash flow projections of the Borrowers
on a consolidated basis for the fiscal years ended December 31, 2004, 2005 and
2006, and their projected balance sheets as of the Closing Date, copies of which
are annexed hereto as Exhibit 5.5(b) (the "Projections") were prepared under the
supervision of the Chief Financial Officer of LESCO, are based on underlying
assumptions which provide a reasonable basis for the projections contained
therein and reflect Borrowers' judgment based on present circumstances of the
most likely set of conditions and course of action for the projected period, all
the foregoing subject to the forward looking cautionary language and risk
factors set forth in LESCO's periodic statements filed from time to time with
the Securities and Exchange Commission. The cash flow Projections together with
the Pro Forma Balance Sheet, are referred to as the "Pro Forma Financial
Statements".

                  (c)      The consolidated and consolidating balance sheets of
the Borrowers, their Subsidiaries and such other Persons described therein
(including the accounts of all Subsidiaries for the respective periods during
which a subsidiary relationship existed) as of December 31, 2002, and the
related statements of income, changes in stockholder's equity, and changes in
cash flow for the period ended on such date, the consolidated balance sheet and
consolidated statements being accompanied by reports thereon containing opinions
without qualification by independent certified public accountants, copies of
which have been delivered to Agent, have been prepared in accordance with GAAP,
consistently applied (except for changes in application in which such
accountants concur and present fairly the financial position of the Borrowers at
such date and the results of their operations for such period. Since December
31, 2002, there has been no change in the condition, financial or otherwise, of
Borrowers as shown on the consolidated balance sheet as of such date and no
change in the aggregate value of machinery, equipment and Real Property owned by
Borrowers, except changes in the ordinary course of business, none of which
individually or in the aggregate has been materially adverse.

                                     -44-
<PAGE>

         5.6.     Corporate Name. Except as set forth on Schedule 5.6, no
Borrower (a) has been known by any other corporate name in the past five years,
(b) sells Inventory under any other name, and (c) has been the surviving
corporation of a merger or consolidation or acquired all or substantially all of
the assets of any Person during the preceding five (5) years.

         5.7.     O.S.H.A. and Environmental Compliance.

                  (a)      Each Borrower has duly complied with, and its
facilities, business, assets, property, Leasehold Interests and Equipment are in
compliance in all material respects with, the provisions of the Federal
Occupational Safety and Health Act (29 U.S.C. Section 651, et seq.) and all
applicable Environmental Laws; except as set forth on Schedule 5.7, there are no
material outstanding citations, notices or orders of non-compliance issued to
any Borrower or relating to its business, assets, property, Leasehold Interests
or Equipment under any such laws, rules or regulations.

                  (b)      Each Borrower has been issued all material required
federal, state and local licenses, certificates or permits relating to all
applicable Environmental Laws.

                  (c)      (i) There are no visible signs of material releases,
spills, discharges, leaks or disposal (collectively referred to as "Releases")
of Hazardous Substances at, upon, under or within any Real Property or Leasehold
Interests; (ii) during its ownership or lease of the Real Property and Leasehold
Interests, no underground storage tanks or polychlorinated biphenyls were placed
on the Real Property and Leasehold Interests, and to the Borrowers' knowledge
there are no underground storage tanks or polychlorinated biphenyls on the Real
Property or Leasehold Interests which were placed on the Real Property of
Leasehold Improvements prior to the Borrower's purchase or lease of Real
Property or Leasehold Interests; (iii) during its ownership or lease of the Real
Property and Leasehold Interests, neither the Real Property nor any Leasehold
Interests has ever been used as a treatment, storage or disposal facility of
Hazardous Waste, and to the Borrowers knowledge, neither the Real Property nor
any Leasehold Interests has ever been used as a treatment, storage or disposal
facility of Hazardous Waste prior to the Borrower's purchase or lease of the
Real Property or Leasehold Interests; and (iv) no Hazardous Substances are
present on the Real Property or Leasehold Interests, excepting (i) such
quantities as are handled in accordance with all applicable manufacturer's
instructions and governmental regulations and in proper storage containers and
as are necessary for the operation of the commercial business of any Borrower,
and (ii) Hazardous Substances placed on the Real Property and Leasehold
Interests prior to the Borrowers' purchase or lease of the Real Property and
Leasehold Interests, of which the Borrower has no knowledge of the presence of
such Hazardous Substances.

         5.8.     Solvency; No Litigation, Violation, Indebtedness or Default.

                  (a)      Borrowers are solvent, able to pay their debts as
they mature, have capital sufficient to carry on their business and all
businesses in which they are about to engage, and (i) as of the Closing Date,
the fair present saleable value of their assets, calculated on a going concern
basis, is in excess of the amount of their liabilities and (ii) subsequent to
the Closing Date, the fair saleable value of their assets (calculated on a going
concern basis) will be in excess of the amount of their liabilities.

                                     -45-
<PAGE>

                  (b)      Except as disclosed in Schedule 5.8(b), no Borrower
has (i) any pending or threatened litigation, arbitration, actions or
proceedings which involve the possibility of having a Material Adverse Effect,
and (ii) any liabilities nor indebtedness for borrowed money other than the
Obligations.

                  (c)      No Borrower is in violation of any applicable
statute, regulation or ordinance in any respect which could reasonably be
expected to have a Material Adverse Effect, nor is any Borrower in material
violation of any order of any court, governmental authority or arbitration board
or tribunal.

                  (d)      No Borrower nor any member of the Controlled Group
maintains or contributes to any Plan other than those listed on Schedule 5.8(d)
hereto. Except as set forth in Schedule 5.8(d), (i) no Plan has incurred any
"accumulated funding deficiency," as defined in Section 302(a)(2) of ERISA and
Section 412(a) of the Code, whether or not waived, and each Borrower and each
member of the Controlled Group has met all applicable minimum funding
requirements under Section 302 of ERISA in respect of each Plan, (ii) each Plan
which is intended to be a qualified plan under Section 401(a) of the Code as
currently in effect has been determined by the Internal Revenue Service to be
qualified under Section 401(a) of the Code and the trust related thereto is
exempt from federal income tax under Section 501(a) of the Code, (iii) no
Borrower nor any member of the Controlled Group has incurred any liability to
the PBGC other than for the payment of premiums, and there are no premium
payments which have become due which are unpaid, (iv) no Plan has been
terminated by the plan administrator thereof nor by the PBGC, and there is no
occurrence which would cause the PBGC to institute proceedings under Title IV of
ERISA to terminate any Plan, (v) at this time, the current value of the assets
of each Plan exceeds the present value of the accrued benefits and other
liabilities of such Plan and no Borrower nor any member of the Controlled Group
knows of any facts or circumstances which would materially change the value of
such assets and accrued benefits and other liabilities, (vi) no Borrower nor any
member of the Controlled Group has materially breached any of the
responsibilities, obligations or duties imposed on it by ERISA with respect to
any Plan, (vii) no Borrower nor any member of a Controlled Group has incurred
any liability for any excise tax arising under Section 4972 or 4980B of the
Code, and no fact exists which could give rise to any such liability, (viii) no
Borrower nor any member of the Controlled Group nor any fiduciary of, nor any
trustee to, any Plan, has engaged in a "prohibited transaction" described in
Section 406 of the ERISA or Section 4975 of the Code for which an exemption is
not available nor taken any action which would constitute or result in a
Termination Event with respect to any such Plan which is subject to ERISA, (ix)
each Borrower and each member of the Controlled Group has made all contributions
due and payable with respect to each Plan, (x) there exists no event described
in Section 4043(b) of ERISA, for which the thirty (30) day notice period
contained in 29 CFR Section 2615.3 has not been waived, (xi) no Borrower nor any
member of the Controlled Group has any fiduciary responsibility for investments
with respect to any plan existing for the benefit of persons other than
employees or former employees of any Borrower and any member of the Controlled
Group, and (xii) no Borrower nor any member of the Controlled Group has
withdrawn, completely or partially, from any Multiemployer Plan so as to incur
liability under the Multiemployer Pension Plan Amendments Act of 1980.

                  5.9.     Patents, Trademarks, Copyrights and Licenses. All
registered patents, patent applications, trademarks, trademark applications,
service marks, service mark applications,

                                      -46-
<PAGE>

copyrights, copyright and copyright applications, and all material design
rights, tradenames, assumed names, trade secrets and licenses owned or utilized
by any Borrower are set forth on Schedule 5.9, are valid and have been duly
registered or filed with all appropriate governmental authorities or are valid
by reason of common law rights and constitute all of the material intellectual
property rights which are necessary for the operation of its business; there is
no material objection to or pending challenge to the validity of any such
patent, trademark, copyright, design right, tradename, trade secret or license
and no Borrower is aware of any grounds for any challenge, except as set forth
in Schedule 5.9 hereto. Each patent, patent application, patent license,
trademark, trademark application, trademark license, service mark, service mark
application, service mark license, design right, copyright, copyright
application and copyright license owned or held by any Borrower and all trade
secrets used by any Borrower consist of original material or property developed
by such Borrower or was lawfully acquired by such Borrower from the proper and
lawful owner thereof. Each of such items has been maintained so as to preserve
the value thereof from the date of creation or acquisition thereof. With respect
to all material software used by any Borrower, such Borrower possesses a license
to use or is in possession of all source and object codes related to each such
piece of software or is the beneficiary of a source code escrow agreement, each
such source code escrow agreement being listed on Schedule 5.9 hereto.

         5.10.    Licenses and Permits. Except as set forth in Schedule 5.10,
each Borrower (a) is in material compliance with and (b) has procured and is now
in possession of, all material licenses or permits required by any applicable
federal, state or local law or regulation for the operation of its business in
each jurisdiction wherein it is now conducting or proposes to conduct business
and where the failure to procure such licenses or permits could have a Material
Adverse Effect.

         5.11.    Default of Indebtedness. No Borrower is in default in the
payment of the principal of or interest on any Indebtedness or under any
instrument or agreement under or subject to which any Indebtedness has been
issued and no event has occurred under the provisions of any such instrument or
agreement which with or without the lapse of time or the giving of notice, or
both, constitutes or would constitute an event of default thereunder.

         5.12.    No Default. No Borrower is in default in the payment or
performance of any of its contractual obligations and no Default has occurred.

         5.13.    No Burdensome Restrictions. No Borrower is party to any
contract or agreement the performance of which could have a Material Adverse
Effect. No Borrower has agreed or consented to cause or permit in the future
(upon the happening of a contingency or otherwise) any of its property, whether
now owned or hereafter acquired, to be subject to a Lien which is not a
Permitted Encumbrance.

         5.14.    No Labor Disputes. No Borrower is involved in any labor
dispute; there are no strikes or walkouts or union organization of any
Borrower's employees threatened or in existence and no labor contract is
scheduled to expire during the Term other than as set forth on Schedule 5.14
hereto.

                                     -47-
<PAGE>

         5.15.    Margin Regulations. No Borrower is engaged, nor will it
engage, principally or as one of its important activities, in the business of
extending credit for the purpose of "purchasing" or "carrying" any "margin
stock" within the respective meanings of each of the quoted terms under
Regulation U of the Board of Governors of the Federal Reserve System as now and
from time to time hereafter in effect. No part of the proceeds of any Advance
will be used for "purchasing" or "carrying" "margin stock" as defined in
Regulation U of such Board of Governors.

         5.16.    Investment Company Act. No Borrower is an "investment company"
registered or required to be registered under the Investment Company Act of
1940, as amended, nor is it controlled by such a company.

         5.17.    Disclosure. No representation or warranty made by any Borrower
in this Agreement or in any financial statement, report, certificate or any
other document furnished in connection herewith or therewith contains any untrue
statement of a material fact or omits to state any material fact necessary to
make the statements herein or therein not misleading. There is no fact known to
Borrowers or which reasonably should be known to Borrowers which Borrowers have
not disclosed to Agent in writing with respect to the transactions contemplated
by this Agreement which could reasonably be expected to have a Material Adverse
Effect.

         5.18.    [Intentionally Omitted.]

         5.19.    Swaps. Except for the Interest Rate Protection Agreement set
forth on Schedule 5.19, no Borrower is a party to, nor will it be a party to,
any swap agreement whereby such Borrower has agreed or will agree to swap
interest rates or currencies unless the same provides that damages upon
termination following an event of default thereunder are payable on an unlimited
"two-way basis" without regard to fault on the part of either party.

         5.20.    Conflicting Agreements. No provision of any mortgage,
indenture, contract, agreement, judgment, decree or order binding on any
Borrower or affecting the Collateral conflicts with, or requires any Consent
which has not already been obtained to, or would in any way prevent the
execution, delivery or performance of, the terms of this Agreement or the Other
Documents.

         5.21.    Application of Certain Laws and Regulations. No Borrower is
subject to any statute, rule or regulation which regulates the incurrence of any
Indebtedness, including without limitation, statutes or regulations relative to
common or interstate carriers or to the sale of electricity, gas, steam, water,
telephone, telegraph or other public utility services.

         5.22.    Business and Property of Borrowers. Upon and after the Closing
Date, Borrowers do not propose to engage in any business other than the
manufacture, sale and distribution of consumable goods and hard goods used on
golf courses and lawns and activities necessary to conduct the foregoing. On the
Closing Date, each Borrower will own all the property and possess all of the
material rights and Consents necessary for the conduct of the business of such
Borrower.

         5.23.    Section 20 Subsidiaries. Borrowers do not intend to use and
shall not use any portion of the proceeds of the Advances, directly or
indirectly, to purchase during the

                                     -48-
<PAGE>

underwriting period, or for 30 days thereafter, Ineligible Securities being
underwritten by a Section 20 Subsidiary.

         5.24. Anti-Terrorism Laws.

                  (a) General.

         None of the Borrowers nor or any Affiliate of any Borrower, is in
violation of any Anti-Terrorism Law or engages in or conspires to engage in any
transaction that evades or avoids, or has the purpose of evading or avoiding, or
attempts to violate, any of the prohibitions set forth in any Anti-Terrorism
Law.

                  (b) Executive Order No. 13224.

         None of the Borrowers nor any Affiliate thereof, or any of their
respective agents acting or benefiting in any capacity in connection with the
Advances, Letters of Credit or other transactions hereunder, is any of the
following (each a "Blocked Person");

                                    (i) a Person that is listed in the annex to,
                           or is otherwise subject to the provisions of, the
                           Executive Order No. 13224;

                                    (ii) a Person owned or controlled by, or
                           acting for or on behalf of, any Person that is listed
                           in the annex to, or is otherwise subject to the
                           provisions of, the Executive Order No. 13224;

                                    (iii) a Person or entity with which any
                           Lender is prohibited from dealing or otherwise
                           engaging in any transaction by any Anti-Terrorism
                           Law;

                                    (iv) a Person or entity that commits,
                           threatens or conspires to commit or supports
                           "terrorism" as defined in the Executive Order No.
                           13224;

                                    (v) a Person or entity that is named as a
                           "specially designated national" on the most current
                           list published by the U.S. Treasury Department Office
                           of Foreign Asset Control at its official website or
                           any replacement website or other replacement official
                           publication of such list; or

                                    (vi) a Person or entity who is affiliated or
                           associated with a Person or entity listed above.

         No Borrower nor or any Affiliate thereof, or to the knowledge of any
Borrower or any Affiliate thereof, any of their respective agents acting in any
capacity in connection with the Advances, Letters of Credit or other
transactions hereunder (i) conducts any business or engages in making or
receiving any contribution of funds, goods or services to or for the benefit of
any Blocked Person, or (ii) deals in, or otherwise engages in any transaction
relating to any property or interests in property blocked pursuant to the
Executive Order No. 13224.

                                      -49-

<PAGE>

VI.      AFFIRMATIVE COVENANTS.

         Each Borrower (unless the context otherwise indicates that the
provision applies only to LESCO) shall, until payment in full of the Obligations
and termination of this Agreement:

         6.1. Payment of Fees. Pay to Agent on demand all usual and customary
fees and expenses which Agent incurs in connection with (a) the forwarding of
Advance proceeds and (b) the establishment and maintenance of any Blocked
Accounts or Depository Accounts as provided for in Section 4.15(h). Agent may,
without making demand, charge Borrowers' Account for all such fees and expenses.

         6.2. Conduct of Business and Maintenance of Existence and Assets. (a)
Conduct continuously and operate actively in all material respects its business
according to good business practices and maintain all of its properties useful
or necessary in its business in good working order and condition (reasonable
wear and tear excepted and except as may be disposed of in accordance with the
terms of this Agreement), including, without limitation, all licenses, patents,
copyrights, design rights, tradenames, trade secrets and trademarks and take all
actions necessary to enforce and protect the validity of any intellectual
property right or other right included in the Collateral; (b) keep in full force
and effect its existence and comply in all material respects with the laws and
regulations governing the conduct of its business where the failure to do so
could reasonably be expected to have a Material Adverse Effect; and (c) in all
material respects make all such reports and pay all such franchise and other
taxes and license fees and do all such other acts and things as may be lawfully
required to maintain its rights, licenses, leases, powers and franchises under
the laws of the United States or any political subdivision thereof.

         6.3. Violations. Promptly notify Agent in writing of any violation of
any law, statute, regulation or ordinance of any Governmental Body, or of any
agency thereof, applicable to any Borrower which could reasonably be expected to
have a Material Adverse Effect.

         6.4. Government Receivables. Take all steps necessary to protect
Agent's interest in the Collateral under the Federal Assignment of Claims Act or
other applicable state or local statutes or ordinances and deliver to Agent
appropriately endorsed, any instrument or chattel paper connected with any
Receivable arising out of contracts between any Borrower and the United States,
any state or any department, agency or instrumentality of any of them.

         6.5. [Intentionally Omitted.]

         6.6. Fixed Charge Coverage Ratio. Commencing with the fiscal quarter
ending December 31, 2003, and at the end of each fiscal quarter thereafter,
Borrowers on a consolidated basis shall maintain a Fixed Charge Coverage Ratio,
as calculated at the end of each fiscal quarter for the four fiscal quarters
then ended, of not less than 1.05 to 1.00.

         6.7. Additional Mortgage; Title Insurance. Provide to the Agent, as
soon as practical, but in any event, no later than the date which is one hundred
eighty (180) days after the Closing Date, (i) an amendment to the IRB Mortgage
and an assignment of the IRB Mortgage Assignment, in form and substance
satisfactory to the Agent, granting and conveying a lien in favor of the Lenders
against the Real Property located in Martins Ferry, Ohio, and (ii) any and all
consents and/or waivers required under the IRB Mortgage and the documents
related thereto, (iii)

                                      -50-

<PAGE>

a second Mortgage on LESCO's fee interest in the Real Property located in
Martins Ferry, Ohio, together with a fully paid mortgagee title insurance policy
(or binding commitment to issue a title insurance policy, marked to agent's
satisfaction to evidence the form of such policy to be delivered with respect to
such Mortgage), in standard ALTA form, issued by a title insurance company
satisfactory to Agent in an amount not less than the fair market value of the
Real Property located at Martins Ferry, Ohio which is subject to such Mortgage,
insuring the Mortgage to create a valid Lien on such Real Property with no
exceptions which Agent shall not have approved in writing, and (iv) an opinion
of Baker & Hostetler LLP, counsel to the Borrowers, in form and substance
satisfactory to the Agent.

         6.8. Landlord's Waivers Provide to the Agent executed landlord and
warehouseman agreements or reaffirmations of landlord and warehouseman
agreements delivered under the Existing Loan Agreement satisfactory to Agent
with respect to all premises leased by Borrowers at which Inventory is located
(and for which Agent has not received such agreements prior to the Closing Date)
within ninety (90) days after the Closing Date. In the event that any Inventory
is located on a premises for which an acceptable landlord or warehouseman
agreement has not been obtained during such period, the Borrowers hereby
acknowledge and agree that the Agent shall reduce the Formula Amount calculated
under Section 2.1(a)(i) by an amount established by the Agent in its sole
reasonable discretion (but in the case of leased premises, in no event more than
three months of rental payments related to such premises) for which an
acceptable landlord or warehouseman agreement has not been obtained.

         6.9. Execution of Supplemental Instruments. Execute and deliver to
Agent from time to time, upon demand, such supplemental agreements, statements,
assignments and transfers, or instructions or documents relating to the
Collateral, and such other instruments as Agent may request, in order that the
full intent of this Agreement may be carried into effect. Within sixty (60) days
after the Closing Date, LESCO shall use its commercially reasonable best efforts
to obtain the execution of the Acknowledgment and Estoppel, in substantially the
form as Exhibit 6.9 attached hereto with such changes in form and content
satisfactory to the Agent, from Sebring Airport Authority, as the landlord with
respect to LESCO's Leasehold Interests for its premises in Sebring, Florida.

         6.10. Payment of Indebtedness, Including Taxes, Etc. Pay, discharge or
otherwise satisfy at or before maturity (subject, where applicable, to specified
grace periods and, in the case of the trade payables, to normal payment
practices) all its obligations and liabilities of whatever nature, including all
taxes, assessments, and governmental charges upon it or any of its properties,
assets, income or profits, except when the failure to do so could not reasonably
be expected to have a Material Adverse Effect or when the amount or validity
thereof is currently being contested in good faith by appropriate proceedings
and each Borrower shall have provided for such reserves as Agent may reasonably
deem proper and necessary, subject at all times to any applicable subordination
arrangement in favor of Lenders.

         6.11. Standards of Financial Statements. Cause all financial statements
referred to in Sections 9.7, 9.8, 9.9, 9.10, 9.11, 9.12, 9.13 and 9.14 as to
which GAAP is applicable to be complete and correct in all material respects
(subject, in the case of interim financial statements, to normal year-end audit
adjustments) and to be prepared in reasonable detail and in accordance

                                      -51-

<PAGE>

with GAAP applied consistently throughout the periods reflected therein (except
as concurred in by such reporting accountants or officer, as the case may be,
and disclosed therein).

         6.12. Inventory Appraisals. Cause appraisals of the Inventory of
Borrowers to be performed by an appraisal firm satisfactory to the Agent at
least once annually. Prior to the occurrence and continuation of an Event of
Default, the Borrowers shall pay the expenses of such appraisals one time per
year. After the occurrence and during the continuation of an Event of Default,
all such appraisals shall be at the expense of the Borrowers.

         6.13. Field Examinations. Cause examinations of Collateral to be
performed by the Agent or, at Agent's option, a firm satisfactory to the Agent
at least twice annually. Prior to the occurrence and continuation of an Event of
Default, and so long as after the Closing Date: (i) Undrawn Availability is
greater than $20,000,000 at all times during the period from April 1 through
November 30 in any year, and (ii) Undrawn Availability is greater than
$10,000,000 at all times during the period from December 1 through March 31 in
any year, the Borrowers shall pay the expenses of such field examinations two
times per year. Prior to the occurrence of an Event of Default, filed
examinations in excess of two times per year shall be at the expense of the
Lenders. After the occurrence and during the continuation of an Event of
Default, or at such time as Undrawn Availability does not exceed the amounts set
forth in clauses (i) or (ii) above, as applicable, all such field examinations
shall be at the expense of the Borrowers.

         6.14. Anti-Terrorism Laws. Not nor shall any of their respective
Affiliates (i) conduct any business or engage in any transaction or dealing with
any Blocked Person, including the making or receiving any contribution of funds,
goods or services to or for the benefit of any Blocked Person, (ii) deal in, or
otherwise engage in any transaction relating to, any property or interest in
property blocked pursuant to the Executive Order No. 13224; or (iii) engage in
or conspire to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions
set forth in the Executive Order No. 13224, the USA Patriot Act or any other
Anti-Terrorism Law. Borrowers shall deliver to Lenders any certification or
other evidence, from time to time requested by any Lender in its sole
discretion, confirming Borrowers' compliance with this Section 6.14.

         6.15. Tax Shelter Provisions. Not treat, nor intend to treat, the
Advance and/or Letters of Credit and related transactions as being a "reportable
transaction" (within the meaning of Treasury Regulation Section 1.6011-4). In
the event any Borrower has determined to take any action inconsistent with such
intention, such Borrower will promptly (1) notify Agent hereof, and (2) deliver
to Agent a duly completed copy of IRS Form 8886 or any successor form. If any
Borrower so notifies the Agent, such Borrower acknowledges that one or more of
Lenders may treat its Advances and/or Letters of Credit as part of a transaction
that is subject to Treasury Regulation Section 301.6112-1, and such Lender or
Lenders, as applicable, will maintain the lists and other records required by
such Treasury Regulation.

VII.     NEGATIVE COVENANTS

         No Borrower shall, until satisfaction in full of the Obligations and
termination of this Agreement:

                                      -52-

<PAGE>

         7.1. Merger, Consolidation, Acquisition and Sale of Assets.

                  (a) Enter into any merger, consolidation or other
reorganization with or into any other Person or acquire all or a substantial
portion of the assets or stock of any Person or permit any other Person to
consolidate with or merge with it.

                  (b) Sell, lease, transfer or otherwise dispose of any of its
properties or assets, except in the ordinary course of its business and except
as provided in Section 4.3.

         7.2. Creation of Liens. Create or suffer to exist any Lien or transfer
upon or against any of its property or assets now owned or hereafter acquired,
except Permitted Encumbrances.

         7.3. Guarantees. Become liable upon the obligations of any Person by
assumption, endorsement or guaranty thereof or otherwise (other than to Lenders)
except the endorsement of checks in the ordinary course of business.

         7.4. Investments. Purchase or acquire obligations or stock of, or any
other interest in, any Person, except (a) obligations issued or guaranteed by
the United States of America or any agency thereof, (b) commercial paper with
maturities of not more than 180 days and a published rating of not less than A-1
or P-1 (or the equivalent rating), (c) certificates of time deposit and bankers'
acceptances having maturities of not more than 180 days and repurchase
agreements backed by United States government securities of a commercial bank if
(i) such bank has a combined capital and surplus of at least $500,000,000, or
(ii) its debt obligations, or those of a holding company of which it is a
Subsidiary, are rated not less than A (or the equivalent rating) by a nationally
recognized investment rating agency, and (d) U.S. money market funds that invest
solely in obligations issued or guaranteed by the United States of America or an
agency thereof.

         7.5. Loans. Make advances, loans or extensions of credit to any Person,
including without limitation, any Parent, Subsidiary or Affiliate except (i)
with respect to the extension of commercial trade credit in connection with the
sale of Inventory in the ordinary course of its business, and (ii) loans by LSI
and Technologies to LESCO.

         7.6. [Intentionally Omitted.]

         7.7. Dividends. Except for (i) non-cash dividends made in accordance
with the terms of any Borrower's incentive compensation plans, or (ii) dividends
made by LSI and Technologies to LESCO, or (iii) the purchase of shares of
LESCO's Series B preferred stock prior to March 31, 2004, declare, pay or make
any dividend or distribution on any shares of the common stock or preferred
stock of any Borrower (other than dividends or distributions payable in its
stock, or split-ups or reclassifications of its stock) or apply any of its
funds, property or assets to the purchase, redemption or other retirement of any
common or preferred stock, or of any options to purchase or acquire any such
shares of common or preferred stock of any Borrower except that so long as (a) a
notice of termination with regard to this Agreement shall not be outstanding,
(b) no Event of Default or Default shall have occurred, and (c) the purpose for
such purchase, redemption or dividend shall be as set forth in writing to Agent
at least ten (10) days prior to such purchase, redemption or dividend and such
purchase, redemption or dividend shall in fact be used for such purpose, LESCO
shall be permitted to pay cash dividends and make cash

                                      -53-

<PAGE>

redemptions not to exceed $15,000,000 in the aggregate; provided, however, that
after giving effect to such payment of cash dividends or cash redemptions (A)
the Borrowers shall have Undrawn Availability of greater than (x) $10,000,000 at
all times during the period from April 1 through November 30 in any year, and
(y) $5,000,000 at all times during the period from December 1 through March 31
in any year, (B) the Fixed Charge Coverage Ratio, calculated on a pro forma
basis as of the end of the most recent fiscal quarter for the four fiscal
quarters then ended, would not be less than 1.10 to 1.00, (C) Net Worth shall be
not less than $50,000,000, and (D) there shall not exist any Event of Default or
Default.

         7.8. Indebtedness. Create, incur, assume or suffer to exist any
Indebtedness (exclusive of trade debt) except in respect of (v) Indebtedness to
Lenders; (vi) Indebtedness incurred for capital expenditures; (vii) Indebtedness
set forth on Schedule 7.8; (iv) Indebtedness of LESCO to LSI and Technologies,
and (v) other unsecured Indebtedness not in excess of $5,000,000 at any one time
outstanding.

         7.9. Nature of Business. Substantially change the nature of the
business in which it is presently engaged, nor except as specifically permitted
hereby purchase or invest, directly or indirectly, in any assets or property
other than in the ordinary course of business for assets or property which are
useful in, necessary for and are to be used in its business as presently
conducted.

         7.10. Transactions with Affiliates. Directly or indirectly, purchase,
acquire or lease any property from, or sell, transfer or lease any property to,
or otherwise deal with, any Affiliate, except transactions in the ordinary
course of business, on an arm's-length basis on terms no less favorable than
terms which would have been obtainable from a Person other than an Affiliate.

         7.11. Leases. Enter as lessee into any lease arrangement for real or
personal property (unless capitalized) if after giving effect thereto, aggregate
annual rental payments for all leased property in the aggregate for all the
Borrowers would exceed (i) $24,000,000 in the fiscal year ended December 31,
2004, (ii) 28,000,000 in the fiscal year ended December 31, 2005; or (iii)
$32,000,000 in the fiscal year ended December 31, 2006 or thereafter.

         7.12. Subsidiaries.

                  (a) Form any Subsidiary.

                  (b) Enter into any partnership, joint venture or similar
arrangement.

         7.13. Fiscal Year and Accounting Changes. Change its fiscal year from
January 1 to December 31 or make any change (i) in accounting treatment and
reporting practices except as required by GAAP or (ii) in tax reporting
treatment except as required by law.

         7.14. Pledge of Credit. Now or hereafter pledge Agent's or any Lender's
credit on any purchases or for any purpose whatsoever or use any portion of any
Advance in or for any business other than such Borrower's business as conducted
on the date of this Agreement.

         7.15. Amendment of Articles of Incorporation, By-Laws. Amend, modify or
waive any term or material provision of its Articles of Incorporation or By-Laws
unless required by law.

                                      -54-

<PAGE>

         7.16. Compliance with ERISA. (i) (x) Maintain, or permit any member of
the Controlled Group to maintain, or (y) become obligated to contribute, or
permit any member of the Controlled Group to become obligated to contribute, to
any Plan, other than those Plans disclosed on Schedule 5.8(d), (ii) engage, or
permit any member of the Controlled Group to engage, in any non-exempt
"prohibited transaction", as that term is defined in section 406 of ERISA and
Section 4975 of the Code, (iii) incur, or permit any member of the Controlled
Group to incur, any "accumulated funding deficiency", as that term is defined in
Section 302 of ERISA or Section 412 of the Code, (iv) terminate, or permit any
member of the Controlled Group to terminate, any defined benefit pension plan
where such event could result in any material liability for underfunding of any
Borrower or any member of the Controlled Group or the imposition of a lien on
the property of any Borrower or any member of the Controlled Group pursuant to
Section 4068 of ERISA, (v) assume, or permit any member of the Controlled Group
to assume, any obligation to contribute to any Multiemployer Plan not disclosed
on Schedule 5.8(d), (vi) incur, or permit any member of the Controlled Group to
incur, any withdrawal liability to any Multiemployer Plan; (vii) fail promptly
to notify Agent of the occurrence of any Termination Event, (viii) fail to
comply, or permit a member of the Controlled Group to fail to comply in all
material respects, with the requirements of ERISA or the Code or other
applicable laws in respect of any Plan, (ix) fail to meet, or permit any member
of the Controlled Group to fail to meet, all minimum funding requirements under
ERISA or the Code or postpone or delay or allow any member of the Controlled
Group to postpone or delay any funding requirement with respect of any Plan.

         7.17. Prepayment of Indebtedness. At any time, directly or indirectly,
prepay any Indebtedness (other than to Lenders), or repurchase, redeem, retire
or otherwise acquire any Indebtedness of any Borrower.

         7.18. Other Agreements. Enter into any amendment or modification of (i)
the Accounts Sales Agreement, (ii) the Disputanta Note or amend, modify, release
or compromise the payments due thereunder; amend the Security Agreement which
secures the Disputanta Note or release any collateral thereunder; or enter into
any material amendment, waiver of modification of the Disputanta Sales
Agreement.

VIII.    CONDITIONS PRECEDENT

         8.1. Conditions to Initial Advances. The agreement of Lenders to make
the initial Advances requested to be made on the Closing Date is subject to the
satisfaction, or waiver by Lenders, immediately prior to or concurrently with
the making of such Advances, of the following conditions precedent:

                  (a) Note; Other Documents. Agent shall have received the Notes
and the Other Documents duly executed and delivered by an authorized officer of
each Borrower;

                  (b) Filings, Registrations and Recordings. Each document
(including, without limitation, any Uniform Commercial Code financing statement)
required by this Agreement, any related agreement or under law or reasonably
requested by the Agent to be filed, registered or recorded in order to create,
in favor of Agent, a perfected security interest in or lien upon the Collateral
shall have been properly filed, registered or recorded in each jurisdiction in
which the

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<PAGE>

filing, registration or recordation thereof is so required or requested, and
Agent shall have received an acknowledgment copy, or other evidence satisfactory
to it, of each such filing, registration or recordation and satisfactory
evidence of the payment of any necessary fee, tax or expense relating thereto;

                  (c) Corporate Proceedings of Borrowers. Agent shall have
received a copy of the resolutions in form and substance reasonably satisfactory
to Agent, of the Board of Directors or Board of Managers of each Borrower
authorizing (i) the execution, delivery and performance of this Agreement, the
Notes, the Mortgage, any related agreements, (collectively the "Documents") and
(ii) the granting by each Borrower of the security interests in and liens upon
the Collateral in each case certified by the Secretary or an Assistant Secretary
of each Borrower as of the Closing Date; and, such certificate shall state that
the resolutions thereby certified have not been amended, modified, revoked or
rescinded as of the date of such certificate;

                  (d) Incumbency Certificates of Borrowers. Agent shall have
received a certificate of the Secretary or an Assistant Secretary of each
Borrower, dated the Closing Date, as to the incumbency and signature of the
officers of each Borrower executing this Agreement, any certificate or other
documents to be delivered by it pursuant hereto, together with evidence of the
incumbency of such Secretary or Assistant Secretary;

                  (e) [Intentionally Omitted.]

                  (f) [Intentionally Omitted.]

                  (g) Certificates. Agent shall have received a copy of the
Articles or Certificate of Incorporation or Articles of Organization of each
Borrower, and all amendments thereto, certified by the Secretary of State or
other appropriate official of its jurisdiction of incorporation together with
copies of the By-Laws or Operating Agreement of each Borrower and all agreements
of each Borrower's shareholders certified as accurate and complete by the
Secretary of each Borrower;

                  (h) Good Standing Certificates. Agent shall have received good
standing certificates for each Borrower dated not more than forty-five (45) days
prior to the Closing Date, issued by the Secretary of State or other appropriate
official of each Borrower's jurisdiction of incorporation and each jurisdiction
where the conduct of each Borrower's business activities or the ownership of its
properties necessitates qualification;

                  (i) Legal Opinion. Agent shall have received the executed
legal opinions of Baker & Hostetler and Gary E. Martinelli & Associates, P.C. in
form and substance satisfactory to Agent which shall cover such matters incident
to the transactions contemplated by this Agreement, the Notes, the Mortgages and
related agreements as Agent may reasonably require and each Borrower hereby
authorizes and directs such counsel to deliver such opinions to Agent and
Lenders;

                  (j) No Litigation. (viii) No litigation, investigation or
proceeding before or by any arbitrator or Governmental Body shall be continuing
or threatened against any Borrower or against the officers or directors of any
Borrower (A) in connection with the Other Documents or any of the transactions
contemplated thereby and which, in the reasonable opinion of Agent, is

                                      -56-

<PAGE>

deemed material or (B) which could, in the reasonable opinion of Agent, have a
Material Adverse Effect; and (ix) no injunction, writ, restraining order or
other order of any nature materially adverse to any Borrower or the conduct of
its business or inconsistent with the due consummation of the Transactions shall
have been issued by any Governmental Body;

                  (k) Financial Condition Certificates. Agent shall have
received an executed Financial Condition Certificate in the form of Exhibit
8.1(k).

                  (l) Collateral Examination. Agent shall have completed
Collateral examinations, the results of which shall be satisfactory in form and
substance to Lenders, of the Receivables and Inventory and all books and records
in connection therewith;

                  (m) Fees. Agent shall have received all fees payable to Agent
and Lenders on or prior to the Closing Date pursuant to Article III hereof and
the Fee Letter;

                  (n) Pro Forma Financial Statements. Agent shall have received
a copy of the Pro Forma Financial Statements which shall be satisfactory in all
respects to Lenders;

                  (o) Payment of Existing Indebtedness. The Indebtedness under
the Existing Loan Agreement shall be indefeasibly paid in full, and the Existing
Loan Agreement shall have been terminated. The IRB Letter of Credit shall be
deemed to become a Letter of Credit issued pursuant to this Agreement, and the
obligations of LESCO under the Reimbursement Agreement shall become part of the
Obligations set forth in this Agreement.

                  (p) Accounts Sales Agreement. The Borrowers shall have
delivered to the Agent true and correct copies of the Accounts Sales Agreement,
GE Program Agreement, and all related documents, and the Intercreditor Agreement
executed by GE Capital, which agreements shall be satisfactory in form and
content to the Agent and the Lenders, and GE Capital shall have funded the
initial purchase of Receivables of LESCO under the Accounts Sales Agreement.

                  (q) Insurance. Agent shall have received in form and substance
satisfactory to Agent, certified copies of Borrowers' casualty insurance
policies, together with loss payable endorsements on Agent's standard form of
loss payee endorsement naming Agent as loss payee, and certified copies of
Borrowers' liability insurance policies, together with endorsements naming Agent
as a co-insured;

                  (r) Title Insurance. Subject to Section 6.7, Agent shall have
received fully paid mortgagee title insurance policies (or binding commitments
to issue title insurance policies, marked to Agent's satisfaction to evidence
the form of such policies to be delivered with respect to the Mortgage), in
standard ALTA form, issued by a title insurance company satisfactory to Agent,
each in an amount equal to not less than the fair market value of the Real
Property and Leasehold Interests subject to the Mortgage, insuring the Mortgage
to create a valid Lien on the Real Property or Leasehold Interests with no
exceptions which Agent shall not have approved in writing;

                  (s) Environmental Reports. Agent shall have received
environmental survey assessments previously prepared by independent
environmental engineering firms with respect to the Real Property located in
Avon Lake, Ohio, Hatfield, Massachusetts, and Sebring, Florida;

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<PAGE>

                  (t) Payment Instructions. Agent shall have received written
instructions from Borrowers directing the application of proceeds of the initial
Advances made pursuant to this Agreement;

                  (u) Projections. Agent shall have received the Projections
which shall be acceptable to the Agent and the Lenders;

                  (v) Consents. Agent shall have received any and all Consents
necessary to permit the effectuation of the transactions contemplated by this
Agreement and the Other Documents; and, Agent shall have received such Consents
and waivers of such third parties as might assert claims with respect to the
Collateral, as Agent and its counsel shall deem necessary;

                  (w) No Adverse Material Change. (i) since December 31, 2002,
there shall not have occurred any event, condition or state of facts which could
reasonably be expected to have a Material Adverse Effect and (ii) no
representations made or information supplied to Agent shall have been proven to
be inaccurate or misleading in any material respect;

                  (x) Leasehold Agreements. Subject to Section 6.8, Agent shall
have received landlord and warehouseman agreements satisfactory to Agent with
respect to all premises leased by Borrowers at which Inventory is located;

                  (y) Mortgage. Agent shall have received in form and substance
satisfactory to Lenders (i) an executed Mortgage for each owned Real Property
and Leasehold Interest other than the Real Property located at Wellington, Ohio,
Windsor, New Jersey, Martins Ferry, Ohio and Stockton, California; and

                  (z) Contract Review. Agent shall have reviewed all material
contracts of Borrowers including, without limitation, leases, union contracts,
labor contracts, vendor supply contracts, license agreements and distributorship
agreements and such contracts and agreements shall be satisfactory in all
respects to Agent;

                  (aa) Closing Certificate. Agent shall have received a closing
certificate signed by the Chief Financial Officer of each Borrower dated as of
the date hereof, stating that (i) all representations and warranties set forth
in this Agreement and the Other Documents are true and correct on and as of such
date, (ii) Borrowers are on such date in compliance with all the terms and
provisions set forth in this Agreement and the Other Documents and (iii) on such
date no Default or Event of Default has occurred or is continuing;

                  (bb) Borrowing Base. Agent shall have received evidence from
Borrowers that the aggregate amount of Eligible Inventory is sufficient in value
and amount to support Advances in the amount requested by Borrowers on the
Closing Date;

                  (cc) Undrawn Availability. After giving effect to the initial
Advances hereunder, including, without limitation, payment in full of the loans
outstanding under the Existing Credit Agreement, Borrowers shall have Undrawn
Availability of at least $15,000,000; and

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<PAGE>

                  (dd) Other. All corporate and other proceedings, and all
documents, instruments and other legal matters in connection with the
Transactions shall be satisfactory in form and substance to Agent and its
counsel.

         8.2. Conditions to Each Advance. The agreement of Lenders to make any
Advance requested to be made on any date (including, without limitation, the
initial Advance), is subject to the satisfaction of the following conditions
precedent as of the date such Advance is made:

                  (a) Representations and Warranties. Each of the
representations and warranties made by any Borrower in or pursuant to this
Agreement and any related agreements to which it is a party, and each of the
representations and warranties contained in any certificate, document or
financial or other statement furnished at any time under or in connection with
this Agreement or any related agreement shall be true and correct in all
material respects on and as of such date as if made on and as of such date;

                  (b) No Default. No Event of Default or Default shall have
occurred and be continuing on such date, or would exist after giving effect to
the Advances requested to be made, on such date; provided, however that Agent,
in its sole discretion, may continue to make Advances notwithstanding the
existence of an Event of Default or Default and that any Advances so made shall
not be deemed a waiver of any such Event of Default or Default; and

                  (c) Maximum Advances. In the case of any Advances requested to
be made, after giving effect thereto, the aggregate Advances shall not exceed
the maximum amount of Advances permitted under Section 2.1 hereof.

Each request for an Advance by any Borrower hereunder shall constitute a
representation and warranty by each Borrower as of the date of such Advance that
the conditions contained in this subsection shall have been satisfied.

IX.      INFORMATION AS TO BORROWER.

         Each Borrower shall, until satisfaction in full of the Obligations and
the termination of this Agreement:

         9.1. Disclosure of Material Matters. Immediately upon learning thereof,
report to Agent all matters materially affecting the value, enforceability or
collectibility of any portion of the Collateral including, without limitation,
any Borrower's reclamation or repossession of, or the return to any Borrower of,
a material amount of goods or claims or disputes asserted by any Customer or
other obligor.

         9.2. Borrowing Base; Schedules. Deliver to Agent on or before the
fifteenth (15th) day of each month as and for the prior month (a) Inventory
reports, and (b) a Borrowing Base Certificate (which shall be calculated as of
the last day of the prior month and which shall not be binding upon Agent or
restrictive of Agent's rights under this Agreement). Notwithstanding the
foregoing, if on any date after the Closing Date either (i) Undrawn Availability
is less than $20,000,000 on any date during the period from April 1 through
November 30 in any year, or (ii) Undrawn Availability is less than $10,000,000
on any date during the period from December 1

                                      -59-

<PAGE>

through March 31 in any year, then the Inventory reports shall be delivered to
the Agent on a weekly basis on Tuesday of each week evidencing the Inventory as
of the previous Friday. In addition, each Borrower will deliver to Agent at such
intervals as Agent may require: (i) confirmatory assignment schedules, (ii)
copies of Customer's invoices, (iii) evidence of shipment or delivery, and (iv)
such further schedules, documents and/or information regarding the Collateral as
Agent may require including, without limitation, trial balances and test
verifications. Agent shall have the right to confirm and verify all Receivables
by any manner and through any medium it considers advisable and do whatever it
may deem reasonably necessary to protect its interests hereunder. The items to
be provided under this Section are to be in form satisfactory to Agent and
executed by each Borrower and delivered to Agent from time to time solely for
Agent's convenience in maintaining records of the Collateral, and any Borrower's
failure to deliver any of such items to Agent shall not affect, terminate,
modify or otherwise limit Agent's Lien with respect to the Collateral.

         9.3. Consummation of Bank Products TC "9.3. Consummation of Bank
Products " \f C \l "2" Promptly notify Agent prior to effecting any Interest
Rate Protection Agreement or other Bank Product with a Lender or an Affiliate of
a Lender other than PNC Bank and its Affiliates, in order to permit Agent to
establish any Bank Product Reserve deemed proper and necessary by Agent.

         9.4. Litigation. Promptly notify Agent in writing of any litigation,
suit or administrative proceeding affecting any Borrower, whether or not the
claim is covered by insurance, and of any suit or administrative proceeding,
which in any such case could reasonably be expected to have a Material Adverse
Effect.

         9.5. Material Occurrences. Promptly notify Agent in writing upon the
occurrence of (a) any Event of Default or Default; (b) any event, development or
circumstance whereby any financial statements or other reports furnished to
Agent fail in any material respect to present fairly, in accordance with GAAP
consistently applied, the financial condition or operating results of any
Borrower as of the date of such statements; (c) any accumulated retirement plan
funding deficiency which, if such deficiency continued for two plan years and
was not corrected as provided in Section 4971 of the Code, could subject any
Borrower to a tax imposed by Section 4971 of the Code; (d) each and every
default by any Borrower which might result in the acceleration of the maturity
of any Indebtedness, including the names and addresses of the holders of such
Indebtedness with respect to which there is a default existing or with respect
to which the maturity has been or could be accelerated, and the amount of such
Indebtedness; and (e) any other development in the business or affairs of any
Borrower which could reasonably be expected to have a Material Adverse Effect;
in each case describing the nature thereof and the action Borrowers propose to
take with respect thereto.

         9.6. Government Receivables. Notify Agent promptly if any of its
Receivables arise out of contracts between any Borrower and the United States or
any department, agency or instrumentality thereof.

         9.7. Annual Financial Statements. Furnish Agent within ninety (90) days
after the end of each fiscal year of Borrowers, financial statements of
Borrowers on a consolidating and consolidated basis including, but not limited
to, statements of income and stockholders' equity

                                      -60-

<PAGE>

and cash flow from the beginning of the current fiscal year to the end of such
fiscal year and the balance sheet as at the end of such fiscal year, all
prepared in accordance with GAAP applied on a basis consistent with prior
practices, and in reasonable detail and, with respect to the consolidated
balance sheet and consolidated statements, reported upon without qualification
by an independent certified public accounting firm selected by Borrowers and
reasonably satisfactory to Agent (the "Accountants"). The report of the
Accountants shall be accompanied by a statement of the Accountants certifying
that (i) they have caused the Loan Agreement to be reviewed, (ii) in making the
examination upon which such report was based either no information came to their
attention which to their knowledge constituted an Event of Default or a Default
under this Agreement or any related agreement or, if such information came to
their attention, specifying any such Default or Event of Default, its nature,
when it occurred and whether it is continuing, and such report shall contain or
have appended thereto calculations which set forth Borrowers' compliance with
the requirements or restrictions imposed by Sections 6.6 and 7.11 hereof. In
addition, the reports shall be accompanied by a certificate of each Borrower's
Chief Financial Officer which shall state that, based on an examination
sufficient to permit him to make an informed statement, no Default or Event of
Default exists, or, if such is not the case, specifying such Default or Event of
Default, its nature, when it occurred, whether it is continuing and the steps
being taken by such Borrower with respect to such event, and such certificate
shall have appended thereto calculations which set forth Borrowers' compliance
with the requirements or restrictions imposed by Sections 6.6 and 7.11 hereof,
including, without limitation, a calculation of the Fixed Charge Coverage Ratio.

         9.8. Quarterly Financial Statements. Furnish Agent within 45 days after
the end of each fiscal quarter, an unaudited balance sheet of Borrowers on a
consolidated and consolidating basis and unaudited statements of income and
stockholders' equity and cash flow of Borrowers on a consolidated and
consolidating basis reflecting results of operations from the beginning of the
fiscal year to the end of such quarter and for such quarter, prepared on a basis
consistent with prior practices and complete and correct in all material
respects, subject to normal and recurring year end adjustments that individually
and in the aggregate are not material to the business of Borrowers. The reports
shall be accompanied by a certificate signed by the Chief Financial Officer of
each Borrower, which shall state that, based on an examination sufficient to
permit him to make an informed statement, no Default or Event of Default exists,
or, if such is not the case, specifying such Default or Event of Default, its
nature, when it occurred, whether it is continuing and the steps being taken by
Borrowers with respect to such default and, such certificate shall have appended
thereto calculations which set forth Borrowers' compliance with the requirements
or restrictions imposed by Sections 6.6 and 7.11 hereof, including, without
limitation, a calculation of the Fixed Charge Coverage Ratio.

         9.9. Monthly Financial Statements. Furnish Agent within thirty (30)
days after the end of each month (except for the month of December, for which
such statements shall be provided within sixty (60) days of each December 31),
an unaudited consolidated balance sheet of Borrowers and unaudited consolidated
statements of income and stockholders' equity and cash flow of Borrowers
reflecting results of operations from the beginning of the fiscal year to the
end of such month and for such month, prepared on a basis consistent with prior
practices and complete and correct in all material respects, subject to normal
and recurring year end adjustments that individually and in the aggregate are
not material to the business of Borrowers. The reports shall be accompanied by a
certificate of each Borrower's Chief Financial Officer,

                                      -61-

<PAGE>

which shall state that, based on an examination sufficient to permit him to make
an informed statement, no Default or Event of Default exists, or, if such is not
the case, specifying such Default or Event of Default, its nature, when it
occurred, whether it is continuing and the steps being taken by Borrowers with
respect to such event and, such certificate shall have appended thereto
calculations which set forth Borrowers' compliance with the requirements or
restrictions imposed by Sections 6.6 and 7.11 hereof, including, without
limitation, a calculation of the Fixed Charge Coverage Ratio.

         9.10. Other Reports. Furnish Agent as soon as available, but in any
event within ten (10) days after the issuance thereof, with copies of such
financial statements, reports and returns as each Borrower shall send to its
stockholders.

         9.11. Additional Information. Furnish Agent with such additional
information as Agent shall reasonably request in order to enable Agent to
determine whether the terms, covenants, provisions and conditions of this
Agreement and the Notes have been complied with by Borrowers including, without
limitation (a) copies of all environmental audits and reviews, (b) without the
necessity of any request by the Agent, at least thirty (30) days prior thereto,
notice of any Borrower's opening of any new office or place of business or any
Borrower's closing of any existing office or place of business, and (c) promptly
upon any Borrower's learning thereof, notice of any labor dispute to which any
Borrower may become a party, any strikes or walkouts relating to any of its
plants or other facilities, and the expiration of any labor contract to which
any Borrower is a party or by which any Borrower is bound.

         9.12. Projected Operating Budget. Furnish Agent, no later than thirty
(30) days prior to the beginning of each Borrower's fiscal years commencing with
fiscal year 2004, a month by month projected operating budget and cash flow of
Borrowers on a consolidated basis for such fiscal year (including an income
statement for each month and a balance sheet as at the end of the last month in
each fiscal quarter), such projections to be accompanied by a certificate signed
by the President or Chief Financial Officer of each Borrower to the effect that
such projections have been prepared on the basis of sound financial planning
practice consistent with past budgets and financial statements and that such
officer has no reason to question the reasonableness of any material assumptions
on which such projections were prepared..

         9.13. Variances From Operating Budget. Upon request of Agent, furnish
Agent, concurrently with the delivery of the financial statements referred to in
Section 9.7 and each quarterly report, a written report summarizing all material
variances from budgets submitted by Borrowers pursuant to Section 9.12 and a
discussion and analysis by management with respect to such variances.

         9.14. Notice of Suits, Adverse Events. Furnish Agent with prompt notice
of (i) any lapse or other termination of any Consent issued to any Borrower by
any Governmental Body or any other Person that is material to the operation of
any Borrower's business, (ii) any refusal by any Governmental Body or any other
Person to renew or extend any such Consent; and (iii) copies of any periodic or
special reports filed by any Borrower with any Governmental Body or Person, if
such reports indicate any material change in the business, operations, affairs
or condition of any Borrower, or if copies thereof are reasonably requested by
Lender, and (iv)

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<PAGE>

copies of any material notices and other communications from any Governmental
Body or Person which specifically relate to any Borrower.

         9.15. ERISA Notices and Requests. Furnish Agent with immediate written
notice in the event that (i) any Borrower or any member of the Controlled Group
knows or has reason to know that a Termination Event has occurred, together with
a written statement describing such Termination Event and the action, if any,
which such Borrower or any member of the Controlled Group has taken, is taking,
or proposes to take with respect thereto and, when known, any action taken or
threatened by the Internal Revenue Service, Department of Labor or PBGC with
respect thereto, (ii) any Borrower or any member of the Controlled Group knows
or has reason to know that a prohibited transaction (as defined in Sections 406
of ERISA and 4975 of the Code for which an exemption is not available) has
occurred together with a written statement describing such transaction and the
action which such Borrower or any member of the Controlled Group has taken, is
taking or proposes to take with respect thereto, (iii) a funding waiver request
has been filed with respect to any Plan together with all communications
received by any Borrower or any member of the Controlled Group with respect to
such request, (iv) any increase in the benefits of any existing defined benefit
pension plan or the establishment of any new defined benefit pension plan or the
commencement of contributions to any defined benefit pension plan to which any
Borrower or any member of the Controlled Group was not previously contributing
shall occur, (v) any Borrower or any member of the Controlled Group shall
receive from the PBGC a notice of intention to terminate a Plan or to have a
trustee appointed to administer a Plan, together with copies of each such
notice, (vi) any Borrower or any member of the Controlled Group shall receive
any unfavorable determination letter from the Internal Revenue Service regarding
the qualification of a Plan under Section 401(a) of the Code, together with
copies of each such letter; (vii) any Borrower or any member of the Controlled
Group shall receive a notice regarding the imposition of withdrawal liability,
together with copies of each such notice; (viii) any Borrower or any member of
the Controlled Group shall fail to make a required installment or any other
required payment under Section 412 of the Code on or before the due date for
such installment or payment; (ix) any Borrower or any member of the Controlled
Group knows that (a) a Multiemployer Plan has been terminated, (b) the
administrator or plan sponsor of a Multiemployer Plan intends to terminate a
Multiemployer Plan, or (c) the PBGC has instituted or will institute proceedings
under Section 4042 of ERISA to terminate a Multiemployer Plan.

         9.16. Additional Documents. Execute and deliver to Agent, upon
reasonable request, such documents and agreements as Agent may, from time to
time, reasonably request to carry out the purposes, terms or conditions of this
Agreement.

         9.17. Tax Shelter Provisions. Deliver to Agent promptly after any
Borrower determines that it intends to treat any of the Advances, Letters of
Credit or related transactions as being a "reportable transaction" as provided
in Section 6.15.

                  (1) a written notice of such intention to Agent; and

                  (2) a duly completed copy of IRS Form 8886 or any successor
form.

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<PAGE>

X.       EVENTS OF DEFAULT.

         The occurrence of any one or more of the following events shall
constitute an "Event of Default":

         10.1. failure by any Borrower to pay any principal or interest on the
Obligations when due, whether at maturity or by reason of acceleration pursuant
to the terms of this Agreement or by notice of intention to prepay, or by
required prepayment or failure to pay any other liabilities or make any other
payment, fee or charge provided for herein when due or in any Other Document;

         10.2. any representation or warranty made or deemed made by any
Borrower in this Agreement or any related agreement or in any certificate,
document or financial or other statement furnished at any time in connection
herewith or therewith shall prove to have been misleading in any material
respect on the date when made or deemed to have been made;

         10.3. failure by any Borrower to (i) furnish financial information when
due or when reasonably requested, or (ii) permit the inspection of its books or
records;

         10.4. issuance of a notice of Lien, levy, assessment, injunction or
attachment against a material portion of any Borrower's property, except for
Permitted Encumbrances;

         10.5. except as otherwise provided for in Sections 10.1 and 10.3,
failure or neglect of any Borrower to perform, keep or observe any term,
provision, condition, covenant herein contained, or contained in any other
agreement or arrangement, now or hereafter entered into between any Borrower and
Agent or any Lender except for a failure or neglect of any Borrower to perform,
keep or observe any term, provision, condition or covenant, contained in
Sections 4.6, 4.7, 4.9, 6.4 or 9.6 hereof which is cured within five (5) days
from the occurrence of such failure or neglect;

         10.6. any judgment or judgments are rendered or judgment liens filed
against any Borrower for an aggregate amount in excess of $450,000 which within
thirty (30) days of such rendering or filing is not either satisfied, stayed or
discharged of record;

         10.7. any Borrower shall (i) apply for, consent to or suffer the
appointment of, or the taking of possession by, a receiver, custodian, trustee,
liquidator or similar fiduciary of itself or of all or a substantial part of its
property, (ii) make a general assignment for the benefit of creditors, (iii)
commence a voluntary case under any state or federal bankruptcy laws (as now or
hereafter in effect), (iv) be adjudicated a bankrupt or insolvent, (v) file a
petition seeking to take advantage of any other law providing for the relief of
debtors, (vi) acquiesce to, or fail to have dismissed, within thirty (30) days,
any petition filed against it in any involuntary case under such bankruptcy
laws, or (vii) take any action for the purpose of effecting any of the
foregoing;

         10.8. any Borrower shall admit in writing its inability, or be
generally unable, to pay its debts as they become due or cease operations of its
present business;

         10.9. any Affiliate or any Subsidiary of any Borrower shall (i) apply
for, consent to or suffer the appointment of, or the taking of possession by, a
receiver, custodian, trustee, liquidator

                                      -64-

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or similar fiduciary of itself or of all or a substantial part of its property,
(ii) admit in writing its inability, or be generally unable, to pay its debts as
they become due or cease operations of its present business, (iii) make a
general assignment for the benefit of creditors, (iv) commence a voluntary case
under any state or federal bankruptcy laws (as now or hereafter in effect), (v)
be adjudicated a bankrupt or insolvent, (vi) file a petition seeking to take
advantage of any other law providing for the relief of debtors, (vii) acquiesce
to, or fail to have dismissed, within thirty (30) days, any petition filed
against it in any involuntary case under such bankruptcy laws, or (viii) take
any action for the purpose of effecting any of the foregoing;

         10.10. any change in any Borrower's condition or affairs (financial or
otherwise) which in Agent's opinion has a Material Adverse Effect;

         10.11. any Lien created hereunder or provided for hereby or under any
related agreement which relates to Collateral having a value in excess of
$500,000 individually or in the aggregate for any reason ceases to be or is not
a valid and perfected Lien having a first priority interest;

         10.12. a Termination Event, as such term is defined in the Accounts
Sales Agreement, shall have occurred.

         10.13. a default of the obligations of any Borrower under any other
agreement to which it is a party shall occur which adversely affects its
condition, affairs or prospects (financial or otherwise) which default is not
cured within any applicable grace period;

         10.14. [Intentionally Omitted.]

         10.15. any Change of Ownership or Change of Control shall occur;

         10.16. any material provision of this Agreement shall, for any reason,
cease to be valid and binding on any Borrower, or any Borrower shall so claim in
writing to Agent;

         10.17. (i) any Governmental Body shall (A) revoke, terminate, suspend
or adversely modify any material license, permit, patent trademark or tradename
of any Borrower, the continuation of which is material to the continuation of
any Borrower's business, or (B) commence proceedings to suspend, revoke,
terminate or adversely modify any such license, permit, trademark, tradename or
patent and such proceedings shall not be dismissed or discharged within sixty
(60) days, or (c) schedule or conduct a hearing on the renewal of any license,
permit, trademark, tradename or patent necessary for the continuation of any
Borrower's business and the staff of such Governmental Body issues a report
recommending the termination, revocation, suspension or material, adverse
modification of such license, permit, trademark, tradename or patent; (ii) any
agreement which is necessary or material to the operation of any Borrower's
business shall be revoked or terminated and not replaced by a substitute
acceptable to Agent within thirty (30) days after the date of such revocation or
termination, and such revocation or termination and non-replacement would
reasonably be expected to have a Material Adverse Effect;

         10.18. any portion of the Collateral shall be seized or taken by a
Governmental Body, or any Borrower or the title and rights of any Borrower or
any Original Owner which is the owner of any material portion of the Collateral
shall have become the subject matter of litigation which

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might, in the opinion of Agent, upon final determination, result in impairment
or loss of the security provided by this Agreement or the Other Documents;

         10.19. an event or condition specified in Sections 7.16 or 9.15 hereof
shall occur or exist with respect to any Plan and, as a result of such event or
condition, together with all other such events or conditions, any Borrower or
any member of the Controlled Group shall incur, or in the opinion of Agent be
reasonably likely to incur, a liability to a Plan or the PBGC (or both) which,
in the reasonable judgment of Agent, would have a Material Adverse Effect.

XI.      LENDERS' RIGHTS AND REMEDIES AFTER DEFAULT.

         11.1. Rights and Remedies. Upon the occurrence of (i) an Event of
Default pursuant to Section 10.7 all Obligations shall be immediately due and
payable and this Agreement and the obligation of Lenders to make Advances shall
be deemed terminated; and, (ii) any of the other Events of Default and at any
time thereafter (such default not having previously been cured), at the option
of Required Lenders all Obligations shall be immediately due and payable and
Lenders shall have the right to terminate this Agreement and to terminate the
obligation of Lenders to make Advances and (iii) a filing of a petition against
Borrower in any involuntary case under any state or federal bankruptcy laws, the
obligation of Lenders to make Advances hereunder shall be terminated other than
as may be required by an appropriate order of the bankruptcy court having
jurisdiction over any Borrower. Upon the occurrence of any Event of Default,
Agent shall have the right to exercise any and all other rights and remedies
provided for herein, under the Uniform Commercial Code and at law or equity
generally, including, without limitation, the right to foreclose the security
interests granted herein and to realize upon any Collateral by any available
judicial procedure and/or to take possession of and sell any or all of the
Collateral with or without judicial process. Agent may enter any of any
Borrower's premises or other premises without legal process and without
incurring liability to any Borrower therefor, and Agent may thereupon, or at any
time thereafter, in its discretion without notice or demand, take the Collateral
and remove the same to such place as Agent may deem advisable and Agent may
require Borrowers to make the Collateral available to Agent at a convenient
place. With or without having the Collateral at the time or place of sale, Agent
may sell the Collateral, or any part thereof, at public or private sale, at any
time or place, in one or more sales, at such price or prices, and upon such
terms, either for cash, credit or future delivery, as Agent may elect. Except as
to that part of the Collateral which is perishable or threatens to decline
speedily in value or is of a type customarily sold on a recognized market, Agent
shall give Borrowers reasonable notification of such sale or sales, it being
agreed that in all events written notice mailed to Borrowers at least five (5)
days prior to such sale or sales is reasonable notification. At any public sale
Agent or any Lender may bid for and become the purchaser, and Agent, any Lender
or any other purchaser at any such sale thereafter shall hold the Collateral
sold absolutely free from any claim or right of whatsoever kind, including any
equity of redemption and such right and equity are hereby expressly waived and
released by each Borrower. In connection with the exercise of the foregoing
remedies, Agent is granted permission to use all of each Borrower's trademarks,
trade styles, trade names, patents, patent applications, licenses, franchises
and other proprietary rights which are used in connection with (a) Inventory for
the purpose of disposing of such Inventory and (b) Equipment for the purpose of
completing the manufacture of unfinished goods. The proceeds realized from the
sale of any Collateral shall be applied as follows: first, to

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the reasonable costs, expenses and attorneys' fees and expenses incurred by
Agent for collection and for acquisition, completion, protection, removal,
storage, sale and delivery of the Collateral; second, to interest due upon any
of the Obligations and any fees payable under this Agreement; and, third, to the
principal of the Obligations. If any deficiency shall arise, Borrowers shall
remain liable to Agent and Lenders therefor.

         11.2. Agent's Discretion. Agent shall have the right in its sole
discretion to determine which rights, Liens, security interests or remedies
Agent may at any time pursue, relinquish, subordinate, or modify or to take any
other action with respect thereto and such determination will not in any way
modify or affect any of Agent's or Lenders' rights hereunder.

         11.3. Setoff. In addition to any other rights which Agent or any Lender
may have under applicable law, upon the occurrence of an Event of Default
hereunder, Agent and such Lender shall have a right to apply any Borrower's
property held by Agent and such Lender to reduce the Obligations.

         11.4. Rights and Remedies not Exclusive. The enumeration of the
foregoing rights and remedies is not intended to be exhaustive and the exercise
of any right or remedy shall not preclude the exercise of any other right or
remedies provided for herein or otherwise provided by law, all of which shall be
cumulative and not alternative.

         11.5. Allocation of Payments After Event of Default. Notwithstanding
any other provisions of this Agreement to the contrary, after the occurrence and
during the continuance of an Event of Default, all amounts collected or received
by the Agent on account of the Obligations or any other amounts outstanding
under any of the Other Documents or in respect of the Collateral may, at Agent's
discretion, be paid over or delivered as follows:

         FIRST, to the payment of all reasonable out-of-pocket costs and
expenses (including without limitation, reasonable attorneys' fees) of the Agent
in connection with enforcing the rights of the Lenders under this Agreement and
the Other Documents and any protective advances made by the Agent with respect
to the Collateral under or pursuant to the terms of this Document;

         SECOND, to payment of any fees owed to the Agent;

         THIRD, to the payment of all reasonable out-of-pocket costs and
expenses (including without limitation, reasonable attorneys' fees) of each of
the Lenders in connection with enforcing its rights under this Agreement and the
Other Documents or otherwise with respect to the Obligations owing to such
Lender;

         FOURTH, to the payment of all of the Obligations consisting of accrued
fees and interest;

         FIFTH, to the payment of the outstanding principal amount of the
Obligations (including the payment or cash collateralization of the outstanding
Letters of Credit);

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         SIXTH, to all other Obligations and other obligations which shall have
become due and payable under the Other Documents or otherwise and not repaid
pursuant to clauses "FIRST" through "FIFTH" above;

         SEVENTH, to the payment of the surplus, if any, to whoever may be
lawfully entitled to receive such surplus.

In carrying out the foregoing, (i) amounts received shall be applied in the
numerical order provided until exhausted prior to application to the next
succeeding category; (ii) each of the Lenders shall receive (so long as it is
not a Defaulting Lender) an amount equal to its pro rata share (based on the
proportion that the then outstanding Advances held by such Lender bears to the
aggregate then outstanding Advances) of amounts available to be applied pursuant
to clauses "THIRD", "FOURTH", "FIFTH" and "SIXTH" above; and (iii) to the extent
that any amounts available for distribution pursuant to clause "FIFTH" above are
attributable to the issued but undrawn amount of outstanding Letters of Credit,
such amounts shall be held by the Agent in a cash collateral account and applied
(A) first, to reimburse the Issuer from time to time for any drawings under such
Letters of Credit and (B) then, following the expiration of all Letters of
Credit, to all other obligations of the types described in clauses "FIFTH" and
"SIXTH" above in the manner provided in this Section 11.5.

XII.     WAIVERS AND JUDICIAL PROCEEDINGS.

         12.1. Waiver of Notice. Each Borrower hereby waives notice of
non-payment of any of the Receivables, demand, presentment, protest and notice
thereof with respect to any and all instruments, notice of acceptance hereof,
notice of loans or advances made, credit extended, Collateral received or
delivered, or any other action taken in reliance hereon, and all other demands
and notices of any description, except such as are expressly provided for
herein.

         12.2. Delay. No delay or omission on Agent's or any Lender's part in
exercising any right, remedy or option shall operate as a waiver of such or any
other right, remedy or option or of any default.

         12.3. Jury Waiver. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES
ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A)
ARISING UNDER THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT
EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR (B) IN ANY WAY CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM
WITH RESPECT TO THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT
EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO
OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER
SOUNDING IN CONTRACT OR TORT OR OTHERWISE AND EACH PARTY HEREBY CONSENTS THAT
ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT
TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS

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WRITTEN EVIDENCE OF THE CONSENTS OF THE PARTIES HERETO TO THE WAIVER OF THEIR
RIGHT TO TRIAL BY JURY.

XIII.    EFFECTIVE DATE AND TERMINATION.

         13.1. Term. This Agreement, which shall inure to the benefit of and
shall be binding upon the respective successors and permitted assigns of each
Borrower, Agent and each Lender, shall become effective on the date hereof and
shall continue in full force and effect until December 30, 2006 (the "Term")
unless sooner terminated as herein provided. Borrowers may terminate this
Agreement at any time upon thirty (30) days' prior written notice upon payment
in full of the Obligations.

         13.2. Termination. The termination of the Agreement shall not affect
any Borrower's, Agent's or any Lender's rights, or any of the Obligations having
their inception prior to the effective date of such termination, and the
provisions hereof shall continue to be fully operative until all transactions
entered into, rights or interests created or Obligations have been fully
disposed of, concluded or liquidated. The security interests, Liens and rights
granted to Agent and Lenders hereunder and the financing statements filed
hereunder shall continue in full force and effect, notwithstanding the
termination of this Agreement or the fact that Borrowers' Account may from time
to time be temporarily in a zero or credit position, until all of the
Obligations of each Borrower have been paid or performed in full after the
termination of this Agreement or each Borrower has furnished Agent and Lenders
with an indemnification reasonably satisfactory to Agent and Lenders with
respect thereto. Accordingly, each Borrower waives any rights which it may have
under the Uniform Commercial Code to demand the filing of termination statements
with respect to the Collateral, and Agent shall not be required to send such
termination statements to each Borrower, or to file them with any filing office,
unless and until this Agreement shall have been terminated in accordance with
its terms and all Obligations paid in full in immediately available funds. All
representations, warranties, covenants, waivers and agreements contained herein
shall survive termination hereof until all Obligations are paid or performed in
full.

XIV.     REGARDING AGENT.

         14.1. Appointment, Intercreditor Agreement. Each Lender hereby
designates PNC to act as Agent for such Lender under this Agreement and the
Other Documents. Each Lender hereby irrevocably authorizes Agent to take such
action on its behalf under the provisions of this Agreement and the Other
Documents and to exercise such powers and to perform such duties hereunder and
thereunder as are specifically delegated to or required of Agent by the terms
hereof and thereof and such other powers as are reasonably incidental thereto
and Agent shall hold all Collateral, payments of principal and interest, fees
(except the fees set forth in the Fee Letter and Section 3.4), charges and
collections (without giving effect to any collection days) received pursuant to
this Agreement, for the ratable benefit of Lenders. Agent may perform any of its
duties hereunder by or through its agents or employees. Without limiting the
generality of the foregoing, each of the Lenders hereby authorizes and directs
Agent to execute and deliver the Intercreditor Agreement, and each Lender
acknowledges and agrees that the Intercreditor Agreement shall be binding on
each such Lender. As to any matters not expressly provided for

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by this Agreement or the Intercreditor Agreement (including without limitation,
collection of the Note) Agent shall not be required to exercise any discretion
or take any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the
instructions of the Required Lenders, and such instructions shall be binding;
provided, however, that Agent shall not be required to take any action which
exposes Agent to liability or which is contrary to this Agreement or the Other
Documents or applicable law unless Agent is furnished with an indemnification
reasonably satisfactory to Agent with respect thereto.

         14.2. Nature of Duties. Agent shall have no duties or responsibilities
except those expressly set forth in this Agreement and the Other Documents.
Neither Agent nor any of its officers, directors, employees or agents shall be
(i) liable for any action taken or omitted by them as such hereunder or in
connection herewith, unless caused by their gross (not mere) negligence or
willful misconduct, or (ii) responsible in any manner for any recitals,
statements, representations or warranties made by any Borrower or any officer
thereof contained in this Agreement, or in any of the Other Documents or in any
certificate, report, statement or other document referred to or provided for in,
or received by Agent under or in connection with, this Agreement or any of the
Other Documents or for the value, validity, effectiveness, genuineness, due
execution, enforceability or sufficiency of this Agreement, or any of the Other
Documents or for any failure of any Borrower to perform its obligations
hereunder. Agent shall not be under any obligation to any Lender to ascertain or
to inquire as to the observance or performance of any of the agreements
contained in, or conditions of, this Agreement or any of the Other Documents, or
to inspect the properties, books or records of any Borrower. The duties of Agent
as respects the Advances to Borrowers shall be mechanical and administrative in
nature; Agent shall not have by reason of this Agreement a fiduciary
relationship in respect of any Lender; and nothing in this Agreement, expressed
or implied, is intended to or shall be so construed as to impose upon Agent any
obligations in respect of this Agreement except as expressly set forth herein.

         14.3. Lack of Reliance on Agent and Resignation. Independently and
without reliance upon Agent or any other Lender, each Lender has made and shall
continue to make (i) its own independent investigation of the financial
condition and affairs of each Borrower in connection with the making and the
continuance of the Advances hereunder and the taking or not taking of any action
in connection herewith, and (ii) its own appraisal of the creditworthiness of
each Borrower. Agent shall have no duty or responsibility, either initially or
on a continuing basis, to provide any Lender with any credit or other
information with respect thereto, whether coming into its possession before
making of the Advances or at any time or times thereafter except as shall be
provided by any Borrower pursuant to the terms hereof. Agent shall not be
responsible to any Lender for any recitals, statements, information,
representations or warranties herein or in any agreement, document, certificate
or a statement delivered in connection with or for the execution, effectiveness,
genuineness, validity, enforceability, collectibility or sufficiency of this
Agreement or any Other Document, or of the financial condition of any Borrower,
or be required to make any inquiry concerning either the performance or
observance of any of the terms, provisions or conditions of this Agreement, the
Note, the Other Documents or the financial condition of any Borrower, or the
existence of any Event of Default or any Default.

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         Agent may resign on sixty (60) days' written notice to each of Lenders
and Borrowing Agent and upon such resignation, the Required Lenders will
promptly designate a successor Agent reasonably satisfactory to Borrowers.

         Any such successor Agent shall succeed to the rights, powers and duties
of Agent, and the term "Agent" shall mean such successor agent effective upon
its appointment, and the former Agent's rights, powers and duties as Agent shall
be terminated, without any other or further act or deed on the part of such
former Agent. After any Agent's resignation as Agent, the provisions of this
Article XIV shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Agent under this Agreement.

         14.4. Certain Rights of Agent. If Agent shall request instructions from
Lenders with respect to any act or action (including failure to act) in
connection with this Agreement or any Other Document, Agent shall be entitled to
refrain from such act or taking such action unless and until Agent shall have
received instructions from the Required Lenders; and Agent shall not incur
liability to any Person by reason of so refraining. Without limiting the
foregoing, Lenders shall not have any right of action whatsoever against Agent
as a result of its acting or refraining from acting hereunder in accordance with
the instructions of the Required Lenders.

         14.5. Reliance. Agent shall be entitled to rely, and shall be fully
protected in relying, upon any note, writing, resolution, notice, statement,
certificate, telex, teletype or telecopier message, cablegram, order or other
document or telephone message believed by it to be genuine and correct and to
have been signed, sent or made by the proper person or entity, and, with respect
to all legal matters pertaining to this Agreement and the Other Documents and
its duties hereunder, upon advice of counsel selected by it. Agent may employ
agents and attorneys-in-fact and shall not be liable for the default or
misconduct of any such agents or attorneys-in-fact selected by Agent with
reasonable care other than for Agent's gross negligence or willful misconduct.

         14.6. Notice of Default. Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default hereunder or under
the Other Documents, unless Agent has received notice from a Lender or a
Borrower referring to this Agreement or the Other Documents, describing such
Default or Event of Default and stating that such notice is a "notice of
default". In the event that Agent receives such a notice, Agent shall give
notice thereof to Lenders. Agent shall take such action with respect to such
Default or Event of Default as shall be reasonably directed by the Required
Lenders; provided, that, unless and until Agent shall have received such
directions, Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interests of Lenders.

         14.7. Indemnification. To the extent Agent is not reimbursed and
indemnified by Borrowers, each Lender will reimburse and indemnify Agent in
proportion to its respective portion of the Advances (or, if no Advances are
outstanding, according to its Commitment Percentage), from and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which
may be imposed on, incurred by or asserted against Agent in performing its
duties hereunder, or in any way relating to or arising out of this Agreement or
any Other Document;

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provided that, Lenders shall not be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from Agent's gross (not mere) negligence or
willful misconduct.

         14.8. Agent in its Individual Capacity. With respect to the obligation
of Agent to lend under this Agreement, the Advances made by it shall have the
same rights and powers hereunder as any other Lender and as if it were not
performing the duties as Agent specified herein; and the term "Lender" or any
similar term shall, unless the context clearly otherwise indicates, include
Agent in its individual capacity as a Lender. Agent may engage in business with
any Borrower as if it were not performing the duties specified herein, and may
accept fees and other consideration from any Borrower for services in connection
with this Agreement or otherwise without having to account for the same to
Lenders.

         14.9. Delivery of Documents. To the extent Agent receives financial
statements required under Sections 9.7, 9.8, 9.9, 9.10, 9.12, 9.13 and the
Borrowing Base Certificate from any Borrower pursuant to the terms of this
Agreement, Agent will promptly furnish such documents and information to
Lenders.

         14.10. Borrowers' Undertaking to Agent. Without prejudice to their
respective obligations to Lenders under the other provisions of this Agreement,
each Borrower hereby undertakes with Agent to pay to Agent from time to time on
demand all amounts from time to time due and payable by it for the account of
Agent or Lenders or any of them pursuant to this Agreement to the extent not
already paid. Any payment made pursuant to any such demand shall pro tanto
satisfy the relevant Borrower's obligations to make payments for the account of
Lenders or the relevant one or more of them pursuant to this Agreement.

         14.11. No Reliance on Agent's Customer Identification Program. Each
Lender acknowledges and agrees that neither such Lender, nor any of its
Affiliates, participants or assignees, may rely on Agent to carry out such
Lender's, Affiliate's, participant's or assignee's customer identification
program, or other obligations required or imposed under or pursuant to the USA
Patriot Act or the regulations thereunder, including the regulations contained
in 31 CFR 103.121 (as hereafter amended or replaced, the "CIP Regulations"), or
any other Anti-Terrorism Law, including any program involving any of the
following items relating to or in connection with any of the Borrowers, their
Affiliates or their agents, this Agreement or the Other Documents or the
transactions hereunder or contemplated hereby: (1) any identity verification
procedures, (2) any recording keeping, (3) comparisons with government lists,
(4) customer notices or (5) other procedures required under the CIP Regulations
or such other laws.

XV.      BORROWING AGENCY.

         15.1. Borrowing Agency Provisions.

                  (a) Each Borrower hereby irrevocably designates Borrowing
Agent to be its attorney and agent and in such capacity to borrow, sign and
endorse notes, and execute and deliver all instruments, documents, writings and
further assurances now or hereafter required hereunder, on behalf of such
Borrower or Borrowers, and hereby authorizes Agent to pay over or credit all
loan proceeds hereunder in accordance with the request of Borrowing Agent.

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                  (b) The handling of this credit facility as a co-borrowing
facility with a borrowing agent in the manner set forth in this Agreement is
solely as an accommodation to Borrowers and at their request. Neither Agent nor
any Lender shall incur liability to Borrowers as a result thereof. To induce
Agent and Lenders to do so and in consideration thereof, each Borrower hereby
indemnifies Agent and each Lender and holds Agent and each Lender harmless from
and against any and all liabilities, expenses, losses, damages and claims of
damage or injury asserted against Agent or any Lender by any Person arising from
or incurred by reason of the handling of the financing arrangements of Borrowers
as provided herein, reliance by Agent or any Lender on any request or
instruction from Borrowing Agent or any other action taken by Agent or any
Lender with respect to this Section 15.1 except due to willful misconduct or
gross (not mere) negligence by the indemnified party.

                  (c) All Obligations shall be joint and several, and each
Borrower shall make payment upon the maturity of the Obligations by acceleration
or otherwise, and such obligation and liability on the part of each Borrower
shall in no way be affected by any extensions, renewals and forbearance granted
to Agent or any Lender to any Borrower, failure of Agent or any Lender to give
any Borrower notice of borrowing or any other notice, any failure of Agent or
any Lender to pursue or preserve its rights against any Borrower, the release by
Agent or any Lender of any Collateral now or thereafter acquired from any
Borrower, and such agreement by each Borrower to pay upon any notice issued
pursuant thereto is unconditional and unaffected by prior recourse by Agent or
any Lender to the other Borrowers or any Collateral for such Borrower's
Obligations or the lack thereof. Each Borrower waives all suretyship defenses.

         15.2. Waiver of Subrogation. Each Borrower expressly waives any and all
rights of subrogation, reimbursement, indemnity, exoneration, contribution of
any other claim which such Borrower may now or hereafter have against the other
Borrowers or other Person directly or contingently liable for the Obligations
hereunder, or against or with respect to the other Borrowers' property
(including, without limitation, any property which is Collateral for the
Obligations), arising from the existence or performance of this Agreement, until
termination of this Agreement and repayment in full of the Obligations.

XVI.     MISCELLANEOUS.

         16.1. Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of Ohio. Any judicial proceeding
brought by or against any Borrower with respect to any of the Obligations, this
Agreement or any related agreement may be brought in any court of competent
jurisdiction in the State of Ohio, United States of America, and, by execution
and delivery of this Agreement, each Borrower accepts for itself and in
connection with its properties, generally and unconditionally, the non-exclusive
jurisdiction of the aforesaid courts, and irrevocably agrees to be bound by any
judgment rendered thereby in connection with this Agreement. Each Borrower
hereby waives personal service of any and all process upon it and consents that
all such service of process may be made by registered mail (return receipt
requested) directed to Borrowing Agent at its address set forth in Section 16.6
and service so made shall be deemed completed five (5) days after the same shall
have been so deposited in the mails of the United States of America, or, at the
Agent's and/or any Lender's option, by personal service upon Borrowing Agent
which each Borrower irrevocably appoints as such Borrower's Agent for the
purpose of accepting service within the State of Ohio. Nothing

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herein shall affect the right to serve process in any manner permitted by law or
shall limit the right of Agent or any Lender to bring proceedings against any
Borrower in the courts of any other jurisdiction. Each Borrower waives any
objection to jurisdiction and venue of any action instituted hereunder and shall
not assert any defense based on lack of jurisdiction or venue or based upon
forum non conveniens. Any judicial proceeding by any Borrower against Agent or
any Lender involving, directly or indirectly, any matter or claim in any way
arising out of, related to or connected with this Agreement or any related
agreement, shall be brought only in a federal or state court located in the
County of Cuyahoga, State of Ohio.

         16.2. Entire Understanding. (a) This Agreement and the documents
executed concurrently herewith contain the entire understanding between each
Borrower, Agent and each Lender and supersedes all prior agreements and
understandings, if any, relating to the subject matter hereof. Any promises,
representations, warranties or guarantees not herein contained and hereinafter
made shall have no force and effect unless in writing, signed by each
Borrower's, Agent's and each Lender's respective officers. Neither this
Agreement nor any portion or provisions hereof may be changed, modified,
amended, waived, supplemented, discharged, cancelled or terminated orally or by
any course of dealing, or in any manner other than by an agreement in writing,
signed by the party to be charged. Each Borrower acknowledges that it has been
advised by counsel in connection with the execution of this Agreement and Other
Documents and is not relying upon oral representations or statements
inconsistent with the terms and provisions of this Agreement.

         (b) The Required Lenders, Agent with the consent in writing of the
Required Lenders, and Borrowers may, subject to the provisions of this Section
16.2 (b), from time to time enter into written supplemental agreements to this
Agreement or the Other Documents executed by Borrowers, for the purpose of
adding or deleting any provisions or otherwise changing, varying or waiving in
any manner the rights of Lenders, Agent or Borrowers thereunder or the
conditions, provisions or terms thereof of waiving any Event of Default
thereunder, but only to the extent specified in such written agreements;
provided, however, that no such supplemental agreement shall, without the
consent of all Lenders:

                                    (i) increase the Maximum Revolving Advance
                           Amount or the Commitment Percentage or maximum dollar
                           commitment of any Lender.

                                    (ii) extend the maturity of any Note or the
                           due date for any amount payable hereunder, or
                           decrease the rate of interest or reduce any fee
                           payable by Borrowers to Lenders pursuant to this
                           Agreement.

                                    (iii) alter the definition of the term
                           Required Lenders or alter, amend or modify this
                           Section 16.2(b).

                                    (iv) release any Collateral during any
                           calendar year (other than in accordance with the
                           provisions of this Agreement) having an aggregate
                           value in excess of $1,000,000, or, except in mergers,
                           consolidations, sales and other dispositions of any
                           Borrower permitted under Section 7.1 hereof, release
                           such Borrower from its Obligations hereunder.

                                      -74-

<PAGE>

                                    (v) change the rights and duties of Agent.

                                    (vi) permit any Revolving Advance to be made
                           if after giving effect thereto the total of Revolving
                           Advances outstanding hereunder would exceed the
                           Formula Amount for more than thirty (30) consecutive
                           Business Days or exceed one hundred and five percent
                           (105%) of the Formula Amount.

                                    (vii) increase the Inventory Advance Rates
                           above the Inventory Advance Rates in effect on the
                           Closing Date.

Any such supplemental agreement shall apply equally to each Lender and shall be
binding upon Borrowers, Lenders and Agent and all future holders of the
Obligations. In the case of any waiver, Borrowers, Agent and Lenders shall be
restored to their former positions and rights, and any Event of Default waived
shall be deemed to be cured and not continuing, but no waiver of a specific
Event of Default shall extend to any subsequent Event of Default (whether or not
the subsequent Event of Default is the same as the Event of Default which was
waived), or impair any right consequent thereon.

         In the event that Agent requests the consent of a Lender pursuant to
this Section 16.2 and such Lender shall not respond or reply to Agent in writing
within ten (10) days of delivery of such request, such Lender shall be deemed
not to have consented to the matter that was the subject of the request. In the
event that Agent requests the consent of a Lender pursuant to this Section 16.2
and such consent is denied, then PNC may, at its option, require such Lender to
assign its interest in the Advances to PNC or to another Lender or to any other
Person designated by the Agent (the "Designated Lender"), for a price equal to
the then outstanding principal amount thereof plus accrued and unpaid interest,
fees and other amounts due such Lender hereunder, which interest, fees and other
amounts shall be paid when collected from Borrowers. In the event PNC elects to
require any Lender to assign its interest to PNC or to the Designated Lender,
PNC will so notify such Lender in writing within forty five (45) days following
such Lender's denial, and such Lender will assign its interest to PNC or the
Designated Lender no later than five (5) days following receipt of such notice
pursuant to a Commitment Transfer Supplement executed by such Lender, PNC or the
Designated Lender, as appropriate, and Agent.

         Notwithstanding (a) the existence of a Default or an Event of Default,
(b) that any of the other applicable conditions precedent set forth in Section
8.2 hereof have not been satisfied or (c) any other provision of this Loan
Agreement, Agent may at its discretion and without the consent of the Required
Lenders, voluntarily permit the outstanding Revolving Advances at any time to
exceed the Formula Amount by up to five percent (5%) of the Formula Amount for
up to thirty (30) consecutive Business Days. For purposes of the preceding
sentence, the discretion granted to Agent hereunder shall not preclude
involuntary overadvances that may result from time to time due to the fact that
the Formula Amount was unintentionally exceeded for any reason, including, but
not limited to, Collateral previously deemed to be "Eligible Inventory" becomes
ineligible, collections of Receivables applied to reduce outstanding Revolving
Advances are thereafter returned for insufficient funds or overadvances are made
to protect or preserve the Collateral.

                                      -75-

<PAGE>

         In addition to (and not in substitution of) the discretionary Revolving
Advances permitted above in this Section 16.2, the Agent is hereby authorized by
the Borrowers and the Lenders, from time to time in the Agent's sole discretion,
(A) after the occurrence and during the continuation of a Default or an Event of
Default, or (b) at any time that any of the other applicable conditions
precedent set forth in Section 8.2 hereof have not been satisfied, to make
Revolving Advances to the Borrowers on behalf of the Lenders which the Agent, in
its reasonable business judgment, deems necessary or desirable (a) to preserve
or protect the Collateral, or any portion thereof, (b) to enhance the likelihood
of, or maximize the amount of, repayment of the Advances and other Obligations,
or (iii) to pay any other amount chargeable to the Borrowers pursuant to the
terms of this Agreement; provided, that at any time after giving effect to any
such Revolving Advances the outstanding Revolving Advances do not exceed one
hundred and five percent (105%) of the Formula Amount."

         16.3. Successors and Assigns; Participations; New Lenders.

                  (a) This Agreement shall be binding upon and inure to the
benefit of Borrowers, Agent, each Lender, all future holders of the Obligations
and their respective successors and assigns, except that no Borrower may assign
or transfer any of its rights or obligations under this Agreement without the
prior written consent of Agent and each Lender.

                  (b) Each Borrower acknowledges that in the regular course of
commercial banking business one or more Lenders may at any time and from time to
time sell participating interests in the Advances to other financial
institutions (each such transferee or purchaser of a participating interest, a
"Transferee"). Each Transferee may exercise all rights of payment (including
without limitation rights of set-off) with respect to the portion of such
Advances held by it or other Obligations payable hereunder as fully as if such
Transferee were the direct holder thereof provided that Borrowers shall not be
required to pay to any Transferee more than the amount which it would have been
required to pay to Lender which granted an interest in its Advances or other
Obligations payable hereunder to such Transferee had such Lender retained such
interest in the Advances hereunder or other Obligations payable hereunder and in
no event shall Borrowers be required to pay any such amount arising from the
same circumstances and with respect to the same Advances or other Obligations
payable hereunder to both such Lender and such Transferee. Each Borrower hereby
grants to any Transferee a continuing security interest in any deposits, moneys
or other property actually or constructively held by such Transferee as security
for the Transferee's interest in the Advances.

                  (c) Any Lender may with the consent of Agent which shall not
be unreasonably withheld or delayed sell, assign or transfer all or any part of
its rights under this Agreement and the Other Documents to one or more
additional banks or financial institutions and one or more additional banks or
financial institutions may commit to make Advances hereunder (each a "Purchasing
Lender"), in minimum amounts of not less than $5,000,000, pursuant to a
Commitment Transfer Supplement, executed by a Purchasing Lender, the transferor
Lender, and Agent and delivered to Agent for recording. Upon such execution,
delivery, acceptance and recording, from and after the transfer effective date
determined pursuant to such Commitment Transfer Supplement, (i) Purchasing
Lender thereunder shall be a party hereto and, to the extent provided in such
Commitment Transfer Supplement, have the rights and obligations of a Lender
thereunder with a Commitment Percentage as set forth therein, and (ii) the
transferor

                                      -76-

<PAGE>

Lender thereunder shall, to the extent provided in such Commitment Transfer
Supplement, be released from its obligations under this Agreement, the
Commitment Transfer Supplement creating a novation for that purpose. Such
Commitment Transfer Supplement shall be deemed to amend this Agreement to the
extent, and only to the extent, necessary to reflect the addition of such
Purchasing Lender and the resulting adjustment of the Commitment Percentages
arising from the purchase by such Purchasing Lender of all or a portion of the
rights and obligations of such transferor Lender under this Agreement and the
Other Documents. Borrowers hereby consent to the addition of such Purchasing
Lender and the resulting adjustment of the Commitment Percentages arising from
the purchase by such Purchasing Lender of all or a portion of the rights and
obligations of such transferor Lender under this Agreement and the Other
Documents. Borrowers shall execute and deliver such further documents and do
such further acts and things in order to effectuate the foregoing.

                  (d) Agent shall maintain at its address a copy of each
Commitment Transfer Supplement delivered to it and a register (the "Register")
for the recordation of the names and addresses of the Advances owing to each
Lender from time to time. The entries in the Register shall be conclusive, in
the absence of manifest error, and Borrowers, Agent and Lenders may treat each
Person whose name is recorded in the Register as the owner of the Advance
recorded therein for the purposes of this Agreement. The Register shall be
available for inspection by Borrowers or any Lender at any reasonable time and
from time to time upon reasonable prior notice. Agent shall receive a fee in the
amount of $3,500 payable by the applicable Purchasing Lender upon the effective
date of each transfer or assignment to such Purchasing Lender.

                  (e) Each Borrower authorizes each Lender to disclose to any
Transferee or Purchasing Lender and any prospective Transferee or Purchasing
Lender any and all financial information in such Lender's possession concerning
such Borrower which has been delivered to such Lender by or on behalf of such
Borrower pursuant to this Agreement or in connection with such Lender's credit
evaluation of such Borrower.

         16.4. Application of Payments, Overadvances for GE Capital Proceeds.
Agent shall have the continuing and exclusive right to apply or reverse and
re-apply any payment and any and all proceeds of Collateral to any portion of
the Obligations.

                  (a) To the extent that any Borrower makes a payment or Agent
or any Lender receives any payment or proceeds of the Collateral for any
Borrower's benefit, which are subsequently invalidated, declared to be
fraudulent or preferential, set aside or required to be repaid to a trustee,
debtor in possession, receiver, custodian or any other party under any
bankruptcy law, common law or equitable cause, then, to such extent, the
Obligations or part thereof intended to be satisfied shall be revived and
continue as if such payment or proceeds had not been received by Agent or such
Lender.

                  (b) In the event that within sixty (60) days after any date on
which Agent has applied GE Capital Proceeds in an aggregate amount for that date
not exceeding $10,000 to any portion of the Obligations or in the event that
within thirty (30) days after any date on which Agent has applied GE Capital
Proceeds in an aggregate amount for that date in excess of $10,000 to any
portion of the Obligations and, in either event, GE Capital has provided notice
thereof (a

                                      -77-

<PAGE>

"GE Proceeds Notice") within such time to Agent and Borrowing Agent (a copy of
which Agent shall promptly provide to the Lenders):

                  (i) Each Lender shall, within three (3) Business Days of the
         date of receipt by Agent of the GE Proceeds Notice, make an Advance (a
         "GE Proceeds Advance") in an amount equal to its Commitment Percentage
         of the amount by which the GE Capital Proceeds which were applied to
         the Obligations and described in the GE Proceeds Notice exceeds the
         amount of Undrawn Availability on the date of such Advance;

                  (ii) Each Lender's GE Proceeds Advance shall be made in
         immediately available funds to the Agent and, to the extent of its
         receipt of GE Proceeds Advances from the Lenders in such funds, Agent
         shall transmit the same to GE Capital as directed by the GE Proceeds
         Notice;

                  (iii) Each GE Proceeds Advance shall be immediately due and
         payable by Borrowers, jointly and severally, at the Payment Office
         without the necessity of any demand, and at all times until paid shall
         accrue interest at the Default Rate as a Domestic Rate Loan;

                  (iv) Each Lender shall be obligated unconditionally and
         irrevocably to make GE Proceeds Advances in accordance with this
         Section 16.4, notwithstanding that there is no Undrawn Availability or
         that any other condition to the making of Advances has not been
         satisfied.

                  (v) To avoid duplication of Obligations relating to GE
         Proceeds Advances, to the extent of the GE Proceeds Advances made by
         Lenders, the Obligations intended to have been satisfied by the related
         GE Capital Proceeds which were applied to the Obligations shall, solely
         to the extent of the GE Proceeds Advances made by Lenders, be revived
         and continue as if such amount had not been received by Agent or any
         such Lenders.

         16.5. Indemnity. Each Borrower shall indemnify Agent, each Lender and
each of their respective officers, directors, Affiliates, employees and agents
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses and disbursements of any
kind or nature whatsoever (including, without limitation, fees and disbursements
of counsel) which may be imposed on, incurred by, or asserted against Agent or
any Lender in any litigation, proceeding or investigation instituted or
conducted by any governmental agency or instrumentality or any other Person with
respect to any aspect of, or any transaction contemplated by, or referred to in,
or any matter related to, this Agreement or the Other Documents, whether or not
Agent or any Lender is a party thereto, except to the extent that any of the
foregoing arises out of the gross negligence or willful misconduct of the party
being indemnified.

         16.6. Notice. Except as otherwise provided in Section 16.1, any notice
or request hereunder may be given to Borrowing Agent or any Borrower or to Agent
or any Lender at their respective addresses set forth below or at such other
address as may hereafter be specified in a notice designated as a notice of
change of address under this Section. Any notice, request,

                                      -78-

<PAGE>

demand, direction or other communication (for purposes of this Section 16.6
only, a "Notice") to be given to or made upon any party hereto under any
provision of this Loan Agreement shall be given or made by telephone or in
writing (which includes by means of electronic transmission (i.e., "e-mail") or
facsimile transmission or by setting forth such Notice on a site on the World
Wide Web (a "Website Posting") if Notice of such Website Posting (including the
information necessary to access such site) has previously been delivered to the
applicable parties hereto by another means set forth in this Section 16.6) in
accordance with this Section 16.6. Any such Notice must be delivered to the
applicable parties hereto at the addresses and numbers set forth under their
respective names on Section 16.6 hereof or in accordance with any subsequent
unrevoked Notice from any such party that is given in accordance with this
Section 16.6. Any Notice shall be effective:

                  (a) In the case of hand-delivery, when delivered;

                  (b) If given by mail, four days after such Notice is deposited
with the United States Postal Service, with first-class postage prepaid, return
receipt requested;

                  (c) In the case of a telephonic Notice, when a party is
contacted by telephone, if delivery of such telephonic Notice is confirmed no
later than the next Business Day by hand delivery, a facsimile or electronic
transmission, a Website Posting or an overnight courier delivery of a
confirmatory Notice (received at or before noon on such next Business Day);

                  (d) In the case of a facsimile transmission, when sent to the
applicable party's facsimile machine's telephone number, if the party sending
such Notice receives confirmation of the delivery thereof from its own facsimile
machine;

                  (e) In the case of electronic transmission, when actually
received;

                  (f) In the case of a Website Posting, upon delivery of a
Notice of such posting (including the information necessary to access such site)
by another means set forth in this Section 16.6; and

                  (g) If given by any other means (including by overnight
courier), when actually received.

         Any Lender giving a Notice to Borrowing Agent or any Borrower shall
concurrently send a copy thereof to the Agent, and the Agent shall promptly
notify the other Lenders of its receipt of such Notice.

         (A)      If to Agent or PNC at:      PNC Bank, National Association
                                              One PNC Plaza, 6th Floor
                                              249 Fifth Avenue
                                              Pittsburgh, PA  15222
                                              Attention:      James M. Steffy
                                              Telephone:      (412) 768-6387
                                              Telecopier:     (412) 768-4369

                                      -79-

<PAGE>

         with a copy to:...                   PNC Bank, National Association
                                              PNC Firstside Center
                                              500 First Avenue, 4th Floor
                                              Pittsburgh, PA  15219
                                              Attention:      Lisa Pierce
                                              Telephone:      (412) 762-6442
                                              Telecopier:     (412) 762-8672

                                              and a copy to:
                                              Buchanan Ingersoll PC
                                              301 Grant Street, 20th Floor
                                              Pittsburgh, PA  15219
                                              Attention:      Thomas S. Galey
                                              Telephone:      (412) 562-3927
                                              Telecopier:     (412) 562-1041

         (B) If to a Lender other than Agent, as specified on the signature
pages hereof.

         (C)      If to Borrowing Agent
                  or any Borrower, at:        LESCO, Inc.
                                              15885 Sprague Road
                                              Strongsville, OH 44136
                                              Attention: Chief Financial Officer
                                              Telephone: (440) 783-9250
                                              Telecopier: (440) 783-2074

                  with a copy to:             LESCO, Inc.
                                              15885 Sprague Road
                                              Strongsville, OH  44136
                                              Attention:  Law Department
                                              Telephone:  (440) 783-9250
                                              Telecopier: (440) 783-2074

                                              and

                                              Baker & Hostetler LLP
                                              3200 National City Center
                                              1900 East Ninth Street
                                              Cleveland, OH  44114
                                              Attention:   M.H. (Bart) Sauer III
                                              Telephone:   (216) 621-0200
                                              Telecopier:  (216) 696-0740

         16.7. Survival. The obligations of Borrowers under Sections 2.2(f),
3.7, 3.8, 3.9, 4.19(h), and 16.5 shall survive termination of this Agreement and
the Other Documents and payment in full of the Obligations. The obligations of
the Lenders to the Agent under Section

                                      -80-

<PAGE>

14.7 shall survive termination of this Agreement and the Other Documents and
payment in full of the Obligations.

         16.8. Severability. If any part of this Agreement is contrary to,
prohibited by, or deemed invalid under applicable laws or regulations, such
provision shall be inapplicable and deemed omitted to the extent so contrary,
prohibited or invalid, but the remainder hereof shall not be invalidated thereby
and shall be given effect so far as possible.

         16.9. Expenses. All costs and expenses including, without limitation,
reasonable attorneys' fees (including the allocated costs of in house counsel)
and disbursements incurred by Agent on its behalf or on behalf of Lenders (a) in
connection with the entering into, modification, amendment, and administration
of this Agreement or any consents or waivers hereunder and all related
agreements, documents and instruments, or (b) in instituting, maintaining,
preserving, enforcing and foreclosing on Agent's security interest in or Lien on
any of the Collateral, whether through judicial proceedings or otherwise, or (c)
in connection with any advice given to Agent or any Lender with respect to its
rights and obligations under this Agreement and all related agreements, may be
charged to Borrowers' Account and shall be part of the Obligations. All costs
and expenses including, without limitation, reasonable attorneys' fees
(including the allocated costs of in house counsel) and disbursements incurred
by Agent or Lenders (a) in all efforts made to enforce payment of any
Obligation, enforcement of this Agreement or effect collection of any
Collateral, or (b) in defending or prosecuting any actions or proceedings
arising out of or relating to Agent's or any Lender's transactions with any
Borrower, may be charged to Borrowers' Account and shall be part of the
Obligations.

         16.10. Injunctive Relief. Each Borrower recognizes that, in the event
any Borrower fails to perform, observe or discharge any of its obligations or
liabilities under this Agreement, any remedy at law may prove to be inadequate
relief to Lenders; therefore, Agent, if Agent so requests, shall be entitled to
temporary and permanent injunctive relief in any such case without the necessity
of proving that actual damages are not an adequate remedy.

         16.11. Consequential Damages. Neither Agent nor any Lender, nor any
agent or attorney for any of them, shall be liable to any Borrower for
consequential damages arising from any breach of contract, tort or other wrong
relating to the establishment, administration or collection of the Obligations.

         16.12. Captions. The captions at various places in this Agreement are
intended for convenience only and do not constitute and shall not be interpreted
as part of this Agreement.

         16.13. Counterparts; Telecopied Signatures. This Agreement may be
executed in any number of and by different parties hereto on separate
counterparts, all of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute one and the same agreement. Any signature
delivered by a party by facsimile transmission shall be deemed to be an original
signature hereto.

         16.14. Construction. The parties acknowledge that each party and its
counsel have reviewed this Agreement and that the normal rule of construction to
the effect that any

                                      -81-

<PAGE>

ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of this Agreement or any amendments, schedules or exhibits
thereto.

         16.15. Confidentiality; Sharing Information.

                  (a) Agent, each Lender and each Transferee shall hold all
non-public information obtained by Agent, such Lender or such Transferee
pursuant to the requirements of this Agreement in accordance with Agent's, such
Lender's and such Transferee's customary procedures for handling confidential
information of this nature; provided, however, Agent, each Lender and each
Transferee may disclose such confidential information (a) to its examiners,
affiliates, outside auditors, counsel and other professional advisors, (b) to
Agent, any Lender or to any prospective Transferees and Purchasing Lenders, and
(c) as required or requested by any Governmental Body or representative thereof
or pursuant to legal process; provided, further that (i) unless specifically
prohibited by applicable law or court order, Agent, each Lender and each
Transferee shall use its best efforts prior to disclosure thereof, to notify the
applicable Borrower of the applicable request for disclosure of such non-public
information (A) by a Governmental Body or representative thereof (other than any
such request in connection with an examination of the financial condition of a
Lender or a Transferee by such Governmental Body) or (B) pursuant to legal
process and (ii) in no event shall Agent, any Lender or any Transferee be
obligated to return any materials furnished by any Borrower other than those
documents and instruments in possession of Agent or any Lender in order to
perfect its Lien on the Collateral once the Obligations have been paid in full
and this Agreement has been terminated.

         Notwithstanding anything herein to the contrary, the information
subject to this Section 16.15 shall not include, and Agent and each Lender may
disclose without limitation of any kind, any information with respect to the
"tax treatment" and "tax structure" (in each case, within the meaning of Income
Tax Regulation Section 1.6011-4) of the transactions contemplated hereby and all
materials of any kind (including opinions or other tax analyses) that are
provided to the Agent or such Lender relating to such tax treatment and tax
structure; provided that with respect to any document or similar item that in
either case contains information concerning the tax treatment or tax structure
of the transaction as well as other information, this sentence shall only apply
to such portion of the document or similar item that relate to the tax treatment
or tax structure of the Advances, Letters of Credit and transactions
contemplated hereby.

                  (b) Each Borrower acknowledges that from time to time
financial advisory, investment banking and other services may be offered or
provided to such Borrower or one or more of its Affiliates (in connection with
this Agreement or otherwise) by any Lender or by one or more Subsidiaries or
Affiliates of such Lender and each Borrower hereby authorizes each Lender to
share any information delivered to such Lender by such Borrower and its
Subsidiaries pursuant to this Agreement, or in connection with the decision of
such Lender to enter into this Agreement, to any such Subsidiary or Affiliate of
such Lender, it being understood that any such Subsidiary or Affiliate of any
Lender receiving such information shall be bound by the provision of Section
16.15 as if it were a Lender hereunder. Such authorization shall survive the
repayment of the other Obligations and the termination of the Loan Agreement.

         16.16. PNC Consent. Any provision of the Reimbursement Agreement to the
contrary notwithstanding, PNC's execution and delivery of this Agreement
constitutes its consent to the

                                      -82-

<PAGE>

consummation of the transactions contemplated herein, and any default or event
of default under the Reimbursement Agreement caused solely by the execution and
delivery of this Agreement or the consummation of the transactions contemplated
hereunder are hereby waived. Other than the foregoing waiver, PNC expressly
retains all rights and remedies under the Reimbursement Agreement.]

         16.17. Publicity. Each Borrower and each Lender hereby authorizes Agent
to make appropriate announcements of the financial arrangement entered into
among Borrowers, Agent and Lenders, including, without limitation, announcements
which are commonly known as tombstones, in such publications and to such
selected parties as Agent shall in its sole and absolute discretion deem
appropriate.

                            [SIGNATURE PAGES FOLLOW]

                                      -83-

<PAGE>

                [SIGNATURE PAGE TO CREDIT AND SECURITY AGREEMENT]

Each of the parties has signed this Agreement as of the day and year first above
written.

                                   LESCO, INC.

                                   By:____________________________(SEAL)
                                   Name: Jeffrey L. Rutherford
                                   Title: Senior Vice President and Chief
                                          Financial Officer

                                   Address: 15885 Sprague Road
                                            Strongsville, OH 44136

                                   LESCO SERVICES, INC.

                                   By:____________________________(SEAL)
                                   Name:  Jeffrey L. Rutherford
                                   Title: Vice President and Chief Financial
                                          Officer

                                   Address: 15885 Sprague Road
                                            Strongsville, OH 44136

                                   LESCO TECHNOLOGIES, LLC

                                   By:____________________________(SEAL)
                                   Name:  Jeffrey L. Rutherford
                                   Title: Vice President and Chief Financial
                                          Officer

                                          --------------------------------------

                                   Address: 15885 Sprague Road
                                            Strongsville, OH 44136

                                   AIM LAWN & GARDEN PRODUCTS, INC.

                                   By:____________________________(SEAL)
                                   Name:  Jeffrey L. Rutherford
                                   Title: Vice President and Chief Financial
                                          Officer

                                   Address: 15885 Sprague Road
                                            Strongsville, OH 44136

                                      -84-

<PAGE>

                                   PNC BANK, NATIONAL ASSOCIATION, as
                                   Lender and as Agent

                                   By:___________________________________
                                   Name:________________________________
                                   Title:_________________________________

                                   Address: PNC Bank, National Association
                                            One PNC Plaza, 6th Floor
                                            249 Fifth Avenue
                                            Pittsburgh, PA  15222
                                            Attention: James M. Steffy
                                   Commitment Percentage:  40%

                                   KEYBANK NATIONAL ASSOCIATION

                                   By:___________________________________
                                   Name: Michael F. McCullough
                                   Title: Senior Vice President

                                   Address: KeyBank National Association
                                            127 Public Square
                                            Cleveland, Ohio  44114
                                            Attention: Michael F. McCullough
                                                       Senior Vice President

                                   Commitment Percentage:  40%

                                   HARRIS TRUST & SAVINGS BANK

                                   By:___________________________________
                                   Name:________________________________
                                   Title:_________________________________

                                   Address:    _____________________________
                                               _____________________________

                                   Commitment Percentage:  20%

                                      -85-

<PAGE>

STATE OF OHIO              )
                           ) ss.
COUNTY OF CUYAHOGA         )

         On this _____ day of December, 2003, before me personally came Jeffrey
L. Rutherford, to me known, who, being by me duly sworn, did depose and say that
he is the Senior Vice President and Chief Financial Officer of LESCO, Inc., and
the Vice President and Chief Financial Officer of each of LESCO Services, Inc.,
LESCO Technologies, LLC and Aim Lawn & Garden Products, Inc., all of the
foregoing entities described in and which executed the foregoing instrument;
that he knows the seal of said entities; that the seals affixed to said
instrument are such seals; that they were so affixed by order of the board of
directors or managers of said entities, and that he signed his name thereto by
like order.

                                                     -------------------------
                                                     Notary Public

MY COMMISSION EXPIRES:

                                      -86-

<PAGE>

COMMONWEALTH OF PENNSYLVANIA        )
                                    ) ss.
COUNTY OF ALLEGHENY                 )

         On this _____ day of December, 2003, before me personally came
______________________________, to me known, who, being by me duly sworn, did
depose and say that he is the __________________ of PNC BANK, NATIONAL
ASSOCIATION, the ______________ described in and which executed the foregoing
instrument and that he signed his name thereto by on behalf of said
_____________.

                                                     -------------------------
                                                     Notary Public

MY COMMISSION EXPIRES:

                                      -87-

<PAGE>

STATE OF OHIO     )
                  ) ss.
COUNTY OF_______  )

         On this _____ day of December, 2003, before me personally came
________________, to me known, who, being by me duly sworn, did depose and say
that he is the ___________________of KEYBANK NATIONAL ASSOCIATION, the
____________________ described in and which executed the foregoing instrument
and that he signed his name thereto by on behalf of said
_________________________.

                                                     -------------------------
                                                     Notary Public

MY COMMISSION EXPIRES:

                                      -88-

<PAGE>

STATE OF _____________        )
                              ) ss.
COUNTY OF_______              )

         On this _____ day of December, 2003, before me personally came
________________, to me known, who, being by me duly sworn, did depose and say
that he is the ___________________of HARRIS TRUST & SAVINGS BANK, the
____________________ described in and which executed the foregoing instrument
and that he signed his name thereto by on behalf of said
_________________________.

                                                     -------------------------
                                                     Notary Public

MY COMMISSION EXPIRES:

                                      -89-

<PAGE>

                                 SCHEDULE 1.2(a)

                                  PRICING GRID

<TABLE>
<CAPTION>
                                                                                                                    LETTER OF
                                                               ALTERNATE BASE    EURODOLLAR        LETTER OF         CREDIT
               FIXED CHARGE COVERAGE                               RATE             RATE            CREDIT          ISSUANCE
   LEVEL               RATIO                FACILITY FEE          SPREAD           SPREAD            FEES              FEE
<S>           <C>                           <C>                <C>               <C>                 <C>              <C>
I            Equal to or less than 1.5          .50%                 .25%          2.50%             2.50%            .150%
             to 1.0

II           Greater than 1.5 to 1.0            .45%                   0%          2.25%             2.25%            .125%
             but equal to or less than
             2.0 to 1.0

III          Greater than 2.0 to 1.0            .40%                   0%          2.00%             2.00%            .125%
</TABLE>

For purposes of determining the Applicable Margin, the Facility Fee, the Letter
of Fees and the Agent's fee for issuance of Letters of Credit:

         (i) During the period from the Closing Date until the first day of the
month following Borrowers' delivery to Agent of Borrowers' audited financial
statements for the fiscal year ended December 31, 2003 pursuant to Section 9.7,
the Applicable Margin, the Facility Fee, the Letter of Fees and the Agent's fee
for issuance of Letters of Credit shall not be less than the percentages set
forth in Level II above; and

         (ii) Subject to the preceding paragraph, on the first day of the month
following Borrowers' delivery to Agent of Borrowers' quarterly financial
statements pursuant to Section 9.8, the Applicable Margin, the Facility Fee, the
Letter of Fees and the Agent's fee for issuance of Letters of Credit shall be
adjusted (if applicable) based upon the Fixed Charge Coverage Ratio evidenced in
such financial statements and the relevant percentages in the Pricing Grid set
forth in this Schedule 1.2(a).

<PAGE>

                         List of Exhibits and Schedules

<TABLE>
<S>                                 <C>
Exhibits
Exhibit 2.1(a)                      Revolving Credit Note
Exhibit 5.5(b)                      Financial Projections
Exhibit 6.6                         Projected EBITDA
Exhibit 6.9                         Acknowledgment and Estoppel
Exhibit 8.1(k)                      Financial Condition Certificate
Exhibit 14.1                        Intercreditor Agreement
Exhibit 16.3                        Commitment Transfer Supplement
Exhibit A                           Borrowing Base Certificate

Schedules
Schedule 1.2(a)                     Pricing Grid
Schedule 1.2(p)                     Permitted Encumbrances
Schedule 2.9                        Letters of Credit (on Closing Date)
Schedule 4.5                        Equipment and Inventory Locations
Schedule 4.15(c)                    Location of Executive Offices
Schedule 4.19                       Real Property
Schedule 5.2(a)                     States of Qualification and Good Standing
Schedule 5.2(b)                     Subsidiaries
Schedule 5.4                        Federal Tax Identification Number
Schedule 5.6                        Prior Names
Schedule 5.7                        Environmental
Schedule 5.8(b)                     Litigation
Schedule 5.8(d)                     Plans
Schedule 5.9                        Intellectual Property, Source Code Escrow Agreements
Schedule 5.10                       Licenses and Permits
Schedule 5.14                       Labor Disputes
Schedule 5.19                       Interest Rate Protection Agreements
Schedule 7.8                        Indebtedness
</TABLE>

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