Document:

AMENDED AND RESTATED CREDIT AGREEMENT

                                      AMONG

                                LADISH CO., INC.,

                    THE FINANCIAL INSTITUTIONS PARTIES HERETO

                                       AND

                       FIRSTAR BANK, NATIONAL ASSOCIATION,

                                    AS AGENT

                           DATED AS OF APRIL 14, 2000

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                            TABLE OF CONTENTS

                                                                     Page

1.   Definitions                                                        1

2.   The Credit Facilities; Fees

     2.1      Revolving Loans                                          12
     2.2      Interest Rate Options                                    13
     2.3      Borrowing Procedure for Revolving Loans                  14
     2.4      Continuation and Conversion Procedure                    15
     2.5      Commitment Fee                                           16
     2.6      Reduction or Termination of Revolving
               Loan Commitment                                         16
     2.7      Term Loan                                                17
     2.8      Interest Rates                                           17
     2.9      Payments                                                 18
     2.10     Prepayments                                              18
     2.11     Additional LIBOR Rate Loan Provisions                    19
     2.12     Setoff                                                   20
     2.13     Pro Rata Treatment; Sharing of Payments                  20
     2.14     Capital Adequacy                                         21
     2.15     Yield Protection                                         21
     2.16     Taxes                                                    22
     2.17     Other Fees                                               24
     2.18     Use of Proceeds                                          25

3.   Representations and Warranties

     3.1      Organizations; Subsidiaries; Corporate Power             25
     3.2      Authorization and Binding Effect                         25
     3.3      Financial Statements                                     26
     3.4      Litigation                                               26
     3.5      Restricted Payments                                      26
     3.6      Indebtedness; No Default                                 26
     3.7      Ownership of Properties; Liens and Encumbrances          27
     3.8      Tax Returns Filed                                        27
     3.9      Margin Stock                                             27
     3.10     Investment Company                                       27

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     3.11     ERISA Liabilities                                        28
     3.12     No Burdensome Agreements                                 28
     3.13     Trademarks, Etc.                                         28
     3.14     Dump Sites                                               28
     3.15     Tanks                                                    29
     3.16     Other Environmental Conditions                           29
     3.17     Changes in Laws                                          29
     3.18     Environmental Judgments, Decrees and Orders              29
     3.19     Environmental Permits and Licenses                       29
     3.20     Year 2000                                                29
     3.21     Accuracy of Information                                  29

4.   Conditions for Borrowing

     4.1      On or Before the Effective Date                          30
     4.2      On or Before Each Subsequent Borrowing Date              31

5.   Affirmative Covenants

     5.1      Annual Financial Statement                               31
     5.2      Interim Financial Statements                             32
     5.3      Management Letters                                       32
     5.4      Other Financial Information                              32
     5.5      Books and Records; Inspection                            32
     5.6      Insurance                                                32
     5.7      Condition of Property                                    33
     5.8      Payment of Taxes                                         33
     5.9      Compliance with Law                                      33
     5.10     ERISA Certificate                                        33
     5.11     Compliance with Other Loan Documents                     34
     5.12     Notice of Default or Claimed Default                     34

6.   Negative Covenants

     6.1      Restricted Payments                                      35
     6.2      Limitations on Indebtedness                              35
     6.3      Limitations on Guaranty Obligations                      35
     6.4      Limitations on Lease Obligations                         35
     6.5      Limitation on Liens and Encumbrances                     35
     6.6      Limitation on Mergers, Etc.                              35
     6.7      Limitation on Acquisitions, Advances and Investments     35

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     6.8      Lines of Business                                        36
     6.9      Sales of Receivables                                     36
     6.10     Sales of Subsidiaries                                    36
     6.11     Sale and Leaseback                                       36
     6.12     Indebtedness to Capitalization Ratio                     36
     6.13     Interest Coverage Ratio                                  37
     6.14     Indebtedness to EBITDA Ratio                             37
     6.15     Transactions with Affiliates                             37

7.   Events of Default; Remedies

     7.1      Events of Default                                        37
     7.2      Remedies                                                 38

8.   The Agent

     8.1      Appointment and Duties of Agent and Issuing Bank         39
     8.2      Discretion and Liability of the Agent                    39
     8.3      Notice of Default                                        40
     8.4      Consultation                                             40
     8.5      Communications To and From the Agent                     40
     8.6      Limitations of Agency                                    40
     8.7      No Representation or Warranty                            41
     8.8      Lender Credit Decision                                   41
     8.9      Indemnity                                                41
     8.10     Resignation or Removal of Agent; Successor
               Agent                                                   41

9.   Miscellaneous

     9.1      Survival of Representations and Warranties               42
     9.2      Indemnification                                          42
     9.3      Expenses                                                 43
     9.4      Notices                                                  43
     9.5      Assignments and Participations                           43
     9.6      Titles                                                   44
     9.7      Parties Bound; Waiver                                    45
     9.8      Governing Law                                            45
     9.9      Submission to Jurisdiction; Service of
               Process                                                 46
     9.10     Waiver of Jury Trial                                     46

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     9.11     Limitation of Liability                                  46
     9.12     Amendments                                               46
     9.13     Counterparts                                             47
     9.14     Effect on Original Credit Agreement                      47
     9.15     Entire Agreement                                         48

                                    Schedules

               Schedule 1.1         Existing Liens and Security Interests
               Schedule 3.1         Subsidiaries
               Schedule 3.4         Litigation
               Schedule 3.18        Environmental Matters
               Schedule 3.20        Year 2000 Compliance
               Schedule 6.3         Guaranty Obligations

                                    Exhibits

               Exhibit A            Form of Revolving Note
               Exhibit B            Form of Term Note
               Exhibit C            Form of Notice of Borrowing
               Exhibit D            Form of Conversion/Continuation Notice
               Exhibit E            Form of Opinion of Company Counsel
               Exhibit F            Form of Assignment and Acceptance

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                      AMENDED AND RESTATED CREDIT AGREEMENT

     THIS AMENDED AND RESTATED CREDIT AGREEMENT, dated as of April 14, 2000, is
among LADISH CO., INC., a Wisconsin corporation (the "Company"), the financial
institutions parties hereto (individually a "Lender" and collectively the
"Lenders") and FIRSTAR BANK, NATIONAL ASSOCIATION, as agent for the Lenders (in
such capacity, the "Agent").

                                    RECITALS

     The Lenders, the Agent and the Company acknowledge the following:

     A. Pursuant to a Credit Agreement dated as of February 15, 1999 as amended
(the "Original Credit Agreement"), among the Company the financial institutions
party thereto (the "Original Lenders") and Firstar Bank, National Association
(formerly known as Firstar Bank Milwaukee, N.A.) as agent, the Original Lenders
provided certain credit facilities to the Company.

     B. The Company, the Lenders and the Agent wish to amend and restate the
Original Amended and Restated Credit Agreement in its entirety.

                                   AGREEMENTS

     In consideration of the promises and agreements set forth below, the
Company, the Lenders and the Agent agree to amend and restate the Original
Credit Agreement in its entirety to read as follows:

     1.  Definitions. As used in this Agreement, the following terms have the
following meanings:

     "Adjusted LIBOR Rate" means, with respect to a LIBOR Rate Loan for the
relevant Interest Period, a rate per annum (rounded upward, if necessary, to the
next higher 1/16 of 1%) determined according to the following formula:

                                          LIBOR Rate
     Adjusted LIBOR Rate =  -------------------------------------------
                                 1.00 - LIBOR Reserve Requirement

     "Affiliate" of any Person means any other Person, directly or indirectly
controlling, controlled by or under common control with such Person. A Person
shall be deemed to control another Person if the controlling Person owns

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10% or more of any class of voting securities (or other ownership interests) of
the controlled Person or possesses, directly or indirectly, the power to direct
or cause the direction of the management or policies of the controlled Person,
whether by ownership of stock (or other ownership interests), by contract or
otherwise.

     "Amortization Expense" means, for any period, the aggregate amount reported
as an expense by the Company and its Consolidated Subsidiaries for the
amortization of intangible assets on the consolidated statement of income for
such period of the Company and its Consolidated Subsidiaries.

     "Applicable Margin" means (a) in the case of Revolving Loans comprised of
Base Rate  Loans, minus 100 basis points (-1.0%) per annum, (b)
in the case of Term Loans comprised of Base Rate Loans, minus 50 base points
(-.50%) per annum, (c) in the case of Revolving Loans comprised of LIBOR Rate
Loans, plus 80 basis points (.80%) per annum and (d) in the case of Term Loans
comprised of LIBOR Rate Loans, plus 125 basis points (1.25%) per annum.

     "Base Rate" means, for any day, the higher of (a) 0.50% per annum above the
latest Federal Funds Rate for such day and (b) the Prime Rate in effect for such
day.

     "Base Rate Loans" means a Loan that bears interest at a rate determined by
reference to the Base Rate.

     "Borrowing Date" means each date on which a Loan is made by a Lender to the
Company.

     "Business Day" means a day (other than Saturday or Sunday) on which banks
are open for business in Milwaukee , Wisconsin and, with respect to the making,
payment or rate determination of a LIBOR Rate Loan, a day on which dealings in
United States dollars are carried on in the London interbank market.

     "Capitalized Lease Obligations" means the aggregate amount of the
obligations of the Company and its Consolidated Subsidiaries under any lease or
rental arrangement which would be capitalized under GAAP and shown as a
liability on the consolidated balance sheet of the Company and its Consolidated
Subsidiaries.

     "Change in Control" means the acquisition by any Person, or two or more
Persons acting in concert, of beneficial ownership (within the meaning of Rule
13d-3 of the Securities and Exchange Commission under the

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Securities Exchange Act of 1934) of 35% or more of the outstanding shares of
voting stock of the Company.

     "Code" means the Internal Revenue Code of 1986, as amended.

     "Consolidated Subsidiaries" means Subsidiaries whose financial statements
are consolidated with those of the Company in accordance with GAAP.

     "Controlled Group" means a group of trades or businesses (whether or not
incorporated) under common control, as defined in the regulations issued
pursuant to section 414(c) of the Code or such other regulations prescribed by
the Pension Benefit Guaranty Corporation pursuant to section 4001(b)(1) of
ERISA, of which the Company is a part.

     "Conversion/Continuation Notice" means a notice in substantially the form
of Exhibit D.

     "Default" means any act, event, condition or omission which, with the
giving of notice or lapse of time, would constitute an Event of Default if
uncured or unremedied.

     "Depreciation Expense" means, for any period, the aggregate amount reported
as an expense by the Company and its Consolidated Subsidiaries for the
depreciation of tangible assets on the consolidated statement of income for such
period of the Company and its Consolidated Subsidiaries.

     "Earnings Before Taxes" means, for any period, the Net Earnings of the
Company and its Consolidated Subsidiaries, but before income taxes, as reported
on the consolidated statement of income for such period of the Company and its
Consolidated Subsidiaries.

     "Effective Date" means April 14, 2000.

     "Eligible Assignee" means (a) a commercial bank organized under the laws of
the United States, or any state thereof, and having a combined capital and
surplus of at least $100,000,000, (b) a commercial bank organized under the laws
of any other country which is a member of the Organization for Economic
Cooperation and Development, or a political subdivision of any such country, and
having a combined capital and surplus of at least $100,000,000 (provided that
such bank is acting through a branch or agency located in the United

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States) and (c) a Person that is primarily engaged in the business of commercial
banking and which is an Affiliate of a Lender.

     "Environmental Laws" means all federal, state and local laws including
statutes, regulations, ordinances, codes, rules and other governmental
restrictions and requirements relating to the discharge of air pollutants, water
pollutants or process waste water or otherwise relating to the environment or
hazardous substances including, but not limited to, the Federal Solid Waste
Disposal Act, the Federal Clean Air Act, the Federal Clean Water Act, the
Federal Resource Conservation and Recovery Act of 1976, the Federal
Comprehensive Environmental Response, Compensation and Liability Act of 1980,
regulations of the Environmental Protection Agency, regulations of the Nuclear
Regulatory Commission and regulations of any state department of natural
resources or state environmental protection agency now or at any time hereafter
in effect.

     "ERISA" means, at any date, the Employee Retirement Income Security Act of
1974, and the regulations thereunder, all as the same shall be in effect at such
date.

     "Event of Default" means the occurrence of any of the events described in
section 7.1.

     "Federal Funds Rate" means, for any day, an interest rate per annum equal
to the weighted average of the rates on overnight, Federal funds transactions
with members of the Federal Reserve System arranged by Federal Funds brokers on
such day, as published for such day by the Federal Reserve Bank of New York in
the weekly statistical release designated as H.15(519), or any successor
publication, on the preceding Business Day opposite the caption "Federal Funds
Rate (Effective)", or, if such rate is not so published for any day which is a
Business Day, the average of the quotations for such day on such transactions
received by the Agent from three Federal funds brokers of recognized standing
selected by it. In the case of a day which is not a Business Day, the Federal
Funds Rate for such day shall be the Federal Funds Rate for the preceding
Business Day.

     "Firstar" means Firstar Bank, National Association (formerly known as
Firstar Bank, Milwaukee, N.A.), a national banking association.

     "GAAP" means generally accepted accounting principles in effect in the
United States from time to time.

     "Guaranty Obligations" means any direct or indirect liability or obligation
of the Company or any Subsidiary under any agreement, undertaking

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or arrangement under which the Company or a Subsidiary guarantees, endorses or
otherwise becomes or is liable for an obligation of any other Person.

     "Indebtedness" of a Person means, without duplication, such Person's (a)
obligations for borrowed money, (b) obligations representing the deferred
purchase price of property or services (other than accounts payable arising in
the ordinary course of such Person's business payable on terms customary in the
trade), (c) obligations, whether or not assumed, secured by a mortgage lien,
pledge or security interest on the property of such Person, (d) obligations
which are evidenced by notes, acceptances or other instruments, (e) Capitalized
Lease Obligations, (f) obligations arising pursuant to Swap Contracts and (g)
obligations for which such Person is obligated pursuant to a letter of credit.

     In the case of the Company, for purposes of the financial covenants in
section 6 of this Agreement, the Indebtedness under clause (f) shall be valued
at the Swap Termination Value if a "termination event" or "event of default" has
occurred under the Swap Contract and, at all other times, shall be deemed to be
$0.

     "Indebtedness to Capitalization Ratio" means the relationship, expressed as
a numerical ratio, between:

          (a) Indebtedness;

and

          (b) the sum of (i) Indebtedness and (ii) Total Equity;

all as determined without duplication in accordance with GAAP applied on a
consistent basis to the Company and its Consolidated Subsidiaries as of the date
of determination.

     "Indebtedness to EBITDA Ratio" means the relationship, expressed as a
numerical ratio, between:

          (a) Indebtedness, as of the date of determination;

and

          (b) the sum of (i) Earnings Before Taxes, (ii) Interest Expense, (iii)
     Depreciation Expense and (iv) Amortization Expense, in each case for the
     four quarter period ending on the date of determination; all as determined
     in

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     accordance with GAAP applied on a consistent basis to the Company and its
     Consolidated Subsidiaries; provided, however, if the Company (a) acquires
     the capital stock or other ownership interests of another Person (the
     "Acquired Company") which, upon completion of the transaction, becomes a
     Subsidiary or (b) acquires assets from another Person (the "Acquired
     Assets"), then the Earnings Before Taxes, Interest Expense, Depreciation
     Expense and Amortization Expense of the Acquired Company, or, in the case
     of Acquired Assets, the portion thereof attributable to the Acquired
     Assets, shall be added to or subtracted from, as the case may be, those of
     the Company for the portion of the four quarter period preceding the date
     of determination that the Company did not own the Acquired Company or the
     Acquired Assets. The Company shall separately identify any amounts relating
     to an Acquired Company or to Acquired Assets in the financial covenant
     calculations required to be provided under section 5.2.

     "Interest Coverage Ratio" means the relationship, expressed as a numerical
ratio, between:

          (a) the sum of (i) Earnings Before Taxes and (ii) Interest Expense;

and

          (b) Interest Expense;

all as determined without duplication in accordance with GAAP applied on a
consistent basis to the Company and its Consolidated Subsidiaries for the four
quarter period ending on the date of determination.

     "Interest Expense" means, for any period, the aggregate amount which would
be reported as paid, incurred, or accrued as interest expense on the
consolidated statement of income for such period of the Company and its
Consolidated Subsidiaries.

     "Interest Period" means, with respect to a LIBOR Rate Loan, a period of
one, two or three months commencing on (and including) a Business Day selected
by the Company pursuant to section 2.3(a) or 2.4(c) of this Agreement and ending
on (but excluding) the day which corresponds numerically to such date one, two
or three months thereafter (or, if such month has no numerically corresponding
date, on the last Business Day of such month), provided that:

          (a) if an Interest Period would otherwise end on a day which is not a
     Business Day, such Interest Period shall end on the next

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     following Business Day (unless such next following Business Day is in a new
     calendar month in which case such Interest Period shall end on the
     immediately preceding Business Day); and

          (b) no Interest Period may end later than the Revolving Note Maturity
     Date, in the case of a Revolving Loan or the Term Note Maturity Date, in
     the case of a Term Loan.

     "Lease Obligations" means, at any date, the obligations of the Company or
any Subsidiary under leases of real or personal property (including taxes,
insurance, maintenance and similar expenses which the Company or a Subsidiary is
required to pay under any such lease) whether or not such obligations are
reflected as liabilities on the consolidated balance sheet of the Company or in
a note thereto excluding, however, Capitalized Lease Obligations.

     "LIBOR Rate" means, with respect to a LIBOR Rate Loan for the applicable
Interest Period, the interest rate at which deposits in United States dollars,
in an amount approximately equal to the requested LIBOR Rate Loan and having a
maturity approximately equal to the requested Interest Period, are offered to
the Agent by prime banks in the London interbank market at approximately 11 a.m.
(London time) two Business Days prior to the first day of such Interest Period.
The LIBOR Rate determined by the Agent shall, in the absence of manifest error,
be conclusive.

     "LIBOR Rate Loan" means a Loan bearing interest at a rate determined by
reference to the Adjusted LIBOR Rate.

     "LIBOR Reserve Requirement" means, with respect to a LIBOR Rate Loan for
the applicable Interest Period, the percentage (expressed as a decimal) equal to
the maximum aggregate reserve requirements (including, without limitation, any
marginal, special, emergency and supplemental reserves) established by the Board
of Governors of the Federal Reserve System for "eurocurrency liabilities" (as
defined in Regulation D of such Board), or for other liabilities which include
deposits of the type used in determining the LIBOR Rate, having a term
approximately equal to the applicable Interest Period.

     "Loan" means an extension of credit by a Lender to the Company in the form
of a Revolving Loan or Term Loan.

     "Loan Documents" means this Agreement, the Notes and all other documents,
instruments and agreements related to or executed in connection with this
Agreement and the transactions contemplated hereby.

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     "Majority Lenders" means the Lenders holding in the aggregate at least 51%
of the aggregate outstanding principal balance of the Loans or, if there are no
Loans outstanding, Lenders whose aggregate Percentage is at least 51%.

     "Multiemployer Plan" means any pension benefit plan subject to Title IV of
ERISA as defined in section 4001(a)(3) of ERISA, to which the Company, any of
its Subsidiaries or any member of the Controlled Group is required to contribute
on behalf of its employees.

     "Net Earnings" means, for any period, the excess of:

          (a) all revenues and income derived from operations in the ordinary
     course of business (excluding extraordinary gains and profits upon the
     disposition of investments and fixed assets),

over

          (b) all expenses and other proper charges against income (including
     payment or provision for all applicable income and other taxes, but
     excluding extraordinary losses and losses upon the disposition of
     investments and fixed assets),

all as determined for such period in accordance with GAAP applied on a
consistent basis to the Company and its Consolidated Subsidiaries.

     "Note" means a Revolving Note or a Term Note and "Notes" means all
Revolving Notes and all Term Notes.

     "Notice of Borrowing" means a notice in substantially the form of Exhibit
C.

     "Percentage" means, for each Lender:

          (a) a percentage equal to such Lender's Revolving Loan Commitment
     divided by the aggregate Revolving Loan Commitments of all Lenders; or,

          (b) if the aggregate Revolving Loan Commitments of all Lenders have
     been terminated, a percentage equal to the outstanding principal amount of
     Loans made by such Lender divided by the aggregate outstanding principal
     amount of Loans made by all Lenders;

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and the Percentage of each Lender as of the date of execution of this Agreement
is set forth opposite its signature hereto.

     "Permitted Liens" means (a) security interests and liens listed on Schedule
1.1 attached hereto, provided that the Indebtedness secured thereby shall not be
renewed, extended or increased; (b) liens for taxes, assessments or governmental
charges not delinquent or being contested in good faith by the Company or any
Subsidiary for which adequate reserves are established and maintained in
accordance with GAAP; (c) construction lien claims not delinquent; (d) purchase
money security interests or liens on any property to be used by the Company or a
Subsidiary in the normal course of its business, and created or incurred
simultaneously with the acquisition of such property, if such security interest
or lien is limited to the property so acquired and the aggregate Indebtedness
incurred by the Company and its Subsidiaries during any fiscal year which is
secured by such security interests and liens does not exceed $2,000,000; (e)
liens or deposits in connection with worker's compensation or other insurance or
to secure the performance of bids, trade contracts (other than for borrowed
money), leases, public or statutory obligations, surety or appeal bonds or other
obligations of like nature incurred in the ordinary course of business; (f)
security interests or liens in respect of capital assets acquired pursuant to
capitalized leases, provided the aggregate Capitalized Lease Obligations
(determined in accordance with GAAP) under all capitalized leases does not
exceed $2,000,000; and (h) easements, restrictions, minor title irregularities
and similar matters which have no material adverse effect as a practical matter
upon the ownership or use of its property by the Company or any Subsidiary.

     "Permitted Swap Contract" means a Swap Contract between the Company and a
Lender (or any Affiliate of a Lender); provided that such agreement is entered
into in the ordinary course of business by the Company for the purpose of
mitigating the Company's risks with respect to interest rate volatility and not
for the purpose of speculation.

     "Person" means any natural person, corporation, limited liability company,
joint venture, partnership, association, trust or other entity or any government
or political subdivision or any agency, department or instrumentality thereof.

     "Plan" means any pension benefit plan subject to Title IV of ERISA,
including any Multiemployer Plan, maintained by the Company, any of its
Subsidiaries or any member of the Controlled Group or any such Plan to which the
Company, any of its Subsidiaries or any member of the Controlled Group is
required to contribute on behalf of its employees.

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     "Prime Rate" means the rate of interest announced by the Agent from time to
time as its base rate for interest rate determinations. The Prime Rate may or
may not be the lowest interest rate charged by the Agent.

     "Quoted Rate" means, as to a Swing Line Loan, the per annum rate of
interest quoted to the Company by Firstar as the rate of interest applicable to
the Swing Line Loan requested by the Company.

     "Quoted Rate Loan" means a Swing Line Loan that bears interest based on the
Quoted Rate.

     "Reportable Event" means a reportable event as that term is defined in
ERISA.

     "Restricted Payments" means dividends or other distributions by the Company
or any Subsidiary based upon the stock or other ownership interest of the
Company or any Subsidiary (except dividends payable to the Company and dividends
payable solely in stock of the Company) and purchases, redemptions and other
acquisitions, direct or indirect, by the Company or any Subsidiary, of the stock
or other ownership interest of the Company or any Subsidiary.

     "Revolving Loan" means an extension of credit made by a Lender to the
Company pursuant to section 2.1 of this Agreement.

     "Revolving Loan Commitment" means the obligation of each Lender to make
Revolving Loans to the Company. The total Revolving Loan Commitment of the
Lenders is $76,000,000 as of the date of the execution of this Agreement and is
subject to reduction from time to time pursuant to section 2.6 and is further
subject to reduction and reinstatement pursuant to section 2.19. The Revolving
Loan Commitment of each Lender as of the date of execution of this Agreement is
set forth opposite its signature hereto.

     "Revolving Note" means a promissory note of the Company in the form of
Exhibit A, appropriately completed, evidencing Revolving Loans made by a Lender
to the Company and "Revolving Notes" means each Revolving Note.

     "Revolving Note Maturity Date" means April 13, 2001, or such earlier date
on which the Revolving Notes become immediately due and payable pursuant to
section 7.2 of this Agreement.

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     "Subordinated Debt" means Indebtedness for borrowed money of the Company or
any of its Subsidiaries, the payment of which is fully subordinated, in a manner
satisfactory to the Lenders, to the prior payment of the Notes.

     "Subsidiary" means as of a particular date (a) any corporation more than
50% of whose outstanding stock having ordinary voting power for the election of
directors shall at the time be owned or controlled by the Company or by one of
its Subsidiaries and (b) any limited liability company more than 50% of whose
outstanding ownership interests shall at the time be owned or controlled by the
Company or by one of its Subsidiaries.

     "Swap Contract" means any agreement (including any master agreement and the
schedules thereto) designed to protect at least one of the parties thereto from
fluctuations in interest rates, exchange rates or forward rates including, but
not limited to, dollar-denominated or cross-currency interest rate exchange
agreements, forward currency exchange agreements, interest rate swap, cap or
collar agreements, forward rate currency or interest rate options, puts and
warrants.

     "Swap Termination Value" means, in respect to any Swap Contract, the
termination value determined in accordance with such Swap Contract after taking
into account any legally enforceable netting agreement.

     "Swing Line Loan" means a Revolving Loan made to the Company by Firstar
pursuant to Section 2.1(b). Swing Line Loans shall be a subfacility of Firstar's
Revolving Loan Commitment and thus, a subfacility of the Lenders' total
Revolving Loan Commitment.

     "Term Loan" means a term loan made by a Lender to the Company pursuant to
section 2.7.

     "Term Loan Amount" means $24,000,000.

     "Term Note" means a promissory note of the Company in the form of Exhibit
B, appropriately completed, evidencing a Term Loan made by a Lender to the
Company and "Term Notes" means each Term Note.

     "Term Note Maturity Date" means April 13, 2003 or such earlier date on
which the Term Notes become due and payable pursuant to section 7.2 of this
Agreement.

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     "Total Equity" means the aggregate amount shown as shareholders' equity as
reported on the consolidated balance sheet of the Company and its Consolidated
Subsidiaries.

     "Type" means, with respect to any Loan, its nature as a Base Rate Loan or
as a LIBOR Rate Loan.

     2.  The Credit Facilities; Fees.

         2.1   Revolving Loans.

               (a) During the period from the Effective Date to the Revolving
          Note Maturity Date, each Lender will make Revolving Loans to the
          Company, subject to the terms and conditions hereof, in an amount
          equal to such Lender's Percentage of the amount of Revolving Loans
          requested by the Company on the applicable Borrowing Date, up to the
          maximum amount at any time outstanding of such Lender's Revolving Loan
          Commitment; provided, however, that the Lenders shall have no
          obligation to make Revolving Loans to the Company if, after giving
          effect thereto, the sum of the aggregate outstanding principal amount
          of Revolving Loans would exceed the total Revolving Loan Commitments.
          Within such maximum amount Revolving Loans may be made, repaid and
          made again. The Revolving Loans made by a Lender shall be evidenced by
          a Revolving Note payable to the order of such Lender and shall be
          payable on the Revolving Note Maturity Date. Although each Revolving
          Note shall be expressed to be payable in the amount of the payee
          Lender's Revolving Loan Commitment on the Effective Date, the Company
          shall be obligated to pay only the amount of Revolving Loans actually
          disbursed to or for the account of the Company by the payee Lender,
          together with interest on the unpaid balance of the sums so disbursed,
          which remain outstanding from time to time as shown on the records of
          the payee Lender. Except as set forth below, the Revolving Loans made
          by the Lenders on a Borrowing Date shall be made ratably in accordance
          with each Lender's Percentage.

               (b) The parties agree that for ease of administration and to
          avoid frequent transfers of funds, Firstar may at its option and from
          time to time make Swing Line Loans to the Company without
          proportionate loans by the other Lenders. Notwithstanding any
          provision of this Agreement to the contrary:

                   (i)   The aggregate outstanding principal amount of all
               outstanding Swing Line Loans shall not exceed $5,000,000;

                                       12
<PAGE>

                   (ii)  The Company may request a Swing Line Loan by a
               telephonic request therefor to Firstar not later than 3 p.m.,
               Milwaukee, Wisconsin time on the requested Borrowing Date;

                   (iii) Swing Line Loans shall be evidenced by the Revolving
               Note payable to the order of Firstar;

                   (iv)  Swing Line Loans shall be Base Rate Loans or Quoted
               Rate Loans, at the option of the Company; and

                   (v)   Swing Line Loans may be prepaid at any time in whole or
               in part without premium or penalty and all payments of principal
               and interest made by the Company on Swing Line Loans shall be
               made to and retained by Firstar.

     Except as expressly set forth to the contrary in this Agreement, Swing Line
Loans shall be governed by the provisions of this Agreement applicable to
Revolving Loans.

     During any period that any Swing Line Loans are outstanding, the Lenders
agree that at any time, upon the request of Firstar, each Lender will make a
Revolving Loan to the Company by transferring to Firstar an amount equal to such
Lender's Percentage of the aggregate principal amount of, and accrued interest
on, the Swing Line Loans then outstanding. Such transfer shall be considered a
Revolving Loan (which shall be a Base Rate Loan) by that Lender to the Company
and a payment of the Swing Line Loans by the Company to Firstar. If an Event of
Default occurs while Swing Line Loans are outstanding, each Lender agrees to
purchase from Firstar, at any time upon Firstar's request, a participation in
such Swing Line Loans in an amount equal to such Lender's Percentage of the then
outstanding principal amount of, and accrued interest on, the Swing Line Loans,
and the principal amount of such participation shall bear interest at the
greater of the Base Rate or the interest rate in effect for such Swing Line
Loans.

         2.2   Interest Rate Options.

               (a) Revolving Loans. Revolving Loans, except for Swing Line
          Loans, may be Base Rate Loans or LIBOR Rate Loans, or a combination
          thereof. The Company shall select the Type of Revolving Loan (and in
          the case of LIBOR Rate Loans, the applicable Interest Period) in
          accordance with sections 2.3(a) and 2.4(c).

                                       13
<PAGE>

               (b) Term Loans. Term Loans may be Base Rate Loans or LIBOR Rate
          Loans, or a combination thereof. The Company shall select the Type of
          Term Loan (and in the case of LIBOR Rate Loans, the applicable
          Interest Period) in accordance with section 2.4(c).

               (c) Additional Provisions. The aggregate principal amount of
          LIBOR Rate Loans made by the Lenders on a Borrowing Date, or pursuant
          to an election by the Company to either (a) convert Base Rate Loans to
          LIBOR Rate Loans or (b) continue LIBOR Rate Loans, shall be in a
          minimum amount of $1,000,000 and in integral multiples of $100,000
          above such minimum. After giving effect to any advance under section
          2.1 or conversion or continuation under section 2.4, there may not be
          more than 10 different Interest Periods in effect.

         2.3   Borrowing Procedure for Revolving Loans.

               (a) The Company shall request Revolving Loans by submitting a
          Notice of Borrowing to the Agent. The Notice of Borrowing must be
          received by the Agent (i) in the case of requested Revolving Loans
          comprised of LIBOR Rate Loans, not later than 11 a.m., Milwaukee,
          Wisconsin time, on a Business Day which is three Business Days prior
          to the requested Borrowing Date (which must be a Business Day) and
          (ii) in the case of requested Revolving Loans comprised of Base Rate
          Loans, not later than 11 a.m., Milwaukee, Wisconsin time, on the
          requested Borrowing Date (which must be a Business Day). Each Notice
          of Borrowing must specify the amount of the requested Revolving Loans,
          the Type of requested Revolving Loans and, if the Company requests
          LIBOR Rate Loans, the applicable Interest Period. The aggregate amount
          of each type of Revolving Loans made on each Borrowing Date shall be
          in a minimum amount of $1,000,000 and in integral multiples of
          $100,000 above such minimum. Each Notice of Borrowing shall be
          irrevocable and shall constitute a certification by the Company that
          the borrowing conditions specified in sections 4.3(b) and 4.3(c) will
          be satisfied on the specified Borrowing Date. The Agent will promptly
          notify the Lenders of the requested Revolving Loans. On or before 3
          p.m., Milwaukee, Wisconsin time, on the specified Borrowing Date each
          Lender shall deposit its Percentage of the requested Revolving Loans
          with the Agent in immediately available funds. Upon fulfillment of the
          applicable borrowing conditions, the Agent shall deposit the Revolving
          Loans in the Company's account maintained with the Agent or as the
          Company may otherwise direct in writing.

               (b) Unless the Agent shall have been notified by telephone,
          confirmed promptly thereafter in writing, by a Lender not later than 2
          p.m., Milwaukee, Wisconsin time, on a Borrowing Date that such Lender
          will

                                       14
<PAGE>

          not make available to the Agent such Lender's Percentage of the
          requested Revolving Loans, the Agent may assume that such Lender has
          made such amount available to the Agent and, in reliance upon such
          assumption, the Agent may (but shall not be required) to make
          available to the Company on such Borrowing Date a corresponding
          amount. If and to the extent that such Lender shall not have so made
          such amount available to the Agent and the Agent in such circumstances
          has made such amount available to the Company, such Lender shall on
          the Business Day following the Borrowing Date make such amount,
          together with interest at the Federal Funds Rate for each day during
          such period, available to the Agent. If such amount is so made
          available, such payment to the Agent shall constitute such Lender's
          Revolving Loan on the Borrowing Date for all purposes of this
          Agreement. If such amount is not made available to the Agent on the
          Business Day following the Borrowing Date, the Agent shall notify the
          Company of such failure to fund and, upon demand by the Agent, the
          Company shall pay such amount to the Agent for the Agent's account
          together with interest thereon, for each day from the date the Agent
          made such amount available to the Company to the date such amount is
          repaid to the Agent, at the interest rate specified in section 2.8(a).

               (c) The failure of any Lender to make a Revolving Loan shall not
          relieve any other Lender of its obligation hereunder to make a
          Revolving Loan on the applicable Borrowing Date, but no Lender shall
          be responsible for the failure of any other Lender to make the
          Revolving Loan to be made by such other Lender on the applicable
          Borrowing Date.

         2.4   Continuation and Conversion Procedure.

               (a) Base Rate Loans shall continue as Base Rate Loans unless and
          until converted into LIBOR Rate Loans. The Company may elect from time
          to time, subject to the terms and conditions of this Agreement, to
          convert all or any part of the outstanding Base Rate Loans into LIBOR
          Rate Loans.

               (b) At the end of the applicable Interest Period for LIBOR Rate
          Loans, such LIBOR Rate Loans shall be automatically converted into
          Base Rate Loans unless the Company shall have given the Agent notice
          in accordance with section 2.4(c) requesting that, at the end of such
          Interest Period, such LIBOR Rate Loans continue as LIBOR Rate Loans.

               (c) The Company shall deliver a Conversion/ Continuation Notice
          to the Agent for each conversion of Base Rate Loans or continuation of
          LIBOR Rate Loans. The Conversion/Continuation Notice must be

                                       15
<PAGE>

          received by the Agent not later than 11 a.m., Milwaukee time, at least
          three Business Days prior to the date of the requested conversion or
          continuation and must specify (i) the requested date (which shall be a
          Business Day) of such conversion or continuation, (ii) the amount of
          Loans to be converted or continued and (iii) the duration of the
          Interest Periods applicable thereto.

               (d) The Agent will promptly notify each Lender of its receipt of
          a Conversion/Continuation Notice or, if no notice is timely provided
          by the Company, the Agent will promptly notify each Lender of the
          details of any automatic conversion. All conversions and continuations
          shall be made ratably according to the respective outstanding
          principal amounts of the Loans with respect to which the notice was
          given.

               (e) Notwithstanding anything to the contrary contained in this
          section, Loans may not be converted into or continued as LIBOR Rate
          Loans when any Default or Event of Default has occurred and is
          continuing.

         2.5   Commitment Fee. As consideration for the Lenders' Revolving Loan
     Commitments, the Company will pay to the Agent, for the account of the
     Lenders, on the last Business Day of each quarter commencing June 30, 2000
     and on the Revolving Note Maturity Date, a commitment fee equal to .15% (15
     basis points) per annum of the daily average unused amount of the Revolving
     Loan Commitment during the preceding quarter or other applicable period;
     provided that for purposes of computing the commitment fee due on June 30,
     2000, the applicable period shall be the Effective Date through June 30,
     2000. Commitment fees shall be calculated for the actual number of days
     elapsed on the basis of a 360-day year.

         2.6   Reduction or Termination of Revolving Loan Commitment. The
     Company may, upon seven Business Days' prior written notice to the Agent,
     permanently reduce the amount of the total Revolving Loan Commitment;
     provided that (i) no such reduction shall reduce the amount of the total
     Revolving Loan Commitment to an amount less than the sum of the aggregate
     unpaid principal balances of the Revolving Notes on the date of such
     reduction and (ii) upon any termination of the Revolving Loan Commitments
     the Company shall pay to the Agent, for the account of the Lenders, the
     outstanding principal balance of the Revolving Notes, all accrued interest
     on the Revolving Notes and all fees, expenses and other amounts payable
     under this Agreement relating to the Revolving Loans as of the termination
     date. Each reduction in the total Revolving Loan Commitment shall be in a
     minimum amount of $1,000,000. Each reduction in the total Revolving Loan
     Commitment shall ratably reduce each Lender's Revolving Loan Commitment.

                                       16
<PAGE>

         2.7   Term Loans. On the Effective Date, each Lender will make a Term
     Loan to the Company, subject to the terms and conditions hereof, in an
     amount equal to such Lender's Percentage of the amount of the Term Loan
     Amount. The Term Loan made by a Lender shall be evidenced by a Term Note
     payable to the order of such Lender. The Company shall repay the
     outstanding principal balance of the Term Notes in 11 equal quarterly
     payments of $2,000,000 each on the last Business Day of each quarter,
     beginning on June 30, 2000 plus a final payment of principal and accrued
     and unpaid interest due on the Term Note Maturity Date. The Company shall
     also pay interest on the unpaid balance of the Term Notes as set forth in
     section 2.8.

         2.8   Interest Rates.

               (a) The unpaid principal balance of Base Rate Loans outstanding
          from time to time shall bear interest prior to, in the case of
          Revolving Loans, the Revolving Note Maturity Date and in the case of
          Term Loans, the Term Note Maturity Date, at an annual rate equal to
          the Base Rate plus the Applicable Margin for Base Rate Loans, and such
          rate shall change on each day on which the Base Rate changes. Accrued
          interest shall be due on the first Business Day of each month,
          commencing April 3, 2000, and on the Revolving Note Maturity Date.

               (b) The unpaid principal balance of each LIBOR Rate Loan shall
          bear interest during the applicable Interest Period at the
          corresponding Adjusted LIBOR Rate plus the Applicable Margin for LIBOR
          Rate Loans. Accrued interest for each LIBOR Rate Loan shall be due on
          the last day of the applicable Interest Period, and in the case of
          Revolving Loans, on the Revolving Note Maturity Date and in the case
          of Term Loans, on the Term Note Maturity Date.

               (c) The unpaid principal balance of each Quoted Rate Loan
          outstanding from time to time under the Revolving Notes shall bear
          interest prior to the Revolving Note Maturity Date at an annual rate
          equal to the Quoted Rate. Accrued interest for each Quoted Rate Loan
          shall be due on the first Business Day of each month, commencing on
          the first of such dates to occur after the Borrowing Date for such
          Quoted Rate Loan.

               (d) Notwithstanding the provisions of sections 2.8(a), 2.8(b),
          and 2.8(c) above, upon the occurrence and during the continuance of an
          Event of Default, the unpaid principal balance of each Note shall,
          upon notice from the Agent to the Company (which notice the Agent may
          send in its discretion and shall send at the direction of the Majority
          Lenders), bear

                                       17
<PAGE>

          interest at an annual rate equal to the Base Rate plus one percentage
          point (the "Default Rate"), payable upon demand. On and after the
          Revolving Note Maturity Date, the unpaid principal balance of the
          Revolving Notes and all accrued interest thereon shall bear interest
          at the Default Rate and shall be payable upon demand. On and after the
          Term Note Maturity Date, the unpaid principal balance of the Term
          Notes and all accrued interest thereon shall bear interest at the
          Default Rate and shall be payable upon demand.

               (e) Interest shall be calculated for the actual number of days
          elapsed on the basis of a 360-day year.

         2.9   Payments. All payments of principal and interest on the Notes and
     of all fees due hereunder shall be made at the office of the Agent, for the
     account of the Lenders, in immediately available funds not later than 12
     noon, Milwaukee, Wisconsin time, on the date due; funds received after that
     time shall be deemed to have been received on the next Business Day.
     Whenever any payment to be made shall otherwise be due on a day which is
     not a Business Day, such payment shall be made on the next succeeding
     Business Day and such extension of time shall be included in computing
     interest and fees, if any, in connection with such payment. The Agent may
     charge any account of the Company at the Agent or at any Lender for any
     payment due under the Notes, or any fee or expense payable hereunder, on or
     after the date due. Except as otherwise provided in section 2.13, the Agent
     shall forward to each Lender, promptly after receipt (and in any event no
     later than 2 p.m. on the following Business Day), such Lender's Percentage
     of such payments received by the Agent.

         2.10  Prepayments.

               (a) Mandatory. The Company shall make a mandatory prepayment of
          the Revolving Notes if and to the extent that the sum of the aggregate
          outstanding principal balances of the Revolving Notes exceeds the
          Revolving Loan Commitment.

               (b) Optional. The Company may at any time repay, without premium
          or penalty, Base Rate Loans in a minimum amount of $ 100,000 (or, if
          less, all outstanding Base Rate Loans). The Company may at any time
          repay, without premium or penalty, Quoted Rate Loans. The Company may
          prepay LIBOR Rate Loans (in a minimum amount of $1,000,000 and in
          integral multiples of $100,000 above such minimum) at any time;
          provided, that, in the event of a prepayment of a LIBOR Rate Loan on
          any day other than the last day of the applicable Interest Period, the
          Company shall also pay to the Agent for the

                                       18
<PAGE>

          account of the Lenders on the prepayment date the amounts referred to
          in section 2.11(c).

     The Company will give the Agent notice of any optional prepayment of the
Notes not later than 12 noon, Milwaukee, Wisconsin time, on the Business Day
prior to the prepayment date, specifying the prepayment date (which must be a
Business Day), the amount to be prepaid and whether the prepayment is to be
applied to the Revolving Notes or to the Term Notes. The amount of such
prepayment and any amounts related thereto shall be due and payable on the
specified prepayment date.

     All optional prepayments of the Term Notes shall be applied on a pro rata
basis to the scheduled principal installments of the Term Notes in the inverse
order of maturity.

         2.11  Additional LIBOR Rate Loan Provisions

               (a) If any Lender determines that the making or maintaining of a
          LIBOR Rate Loan would violate any applicable law, rule regulation or
          directive, whether or not having the force of law, then the obligation
          of the Lenders to make or continue LIBOR Rate Loans, or to convert
          Base Rate Loans into LIBOR Rate Loans, shall be suspended until the
          Agent notifies the Company that the circumstances causing such
          suspension no longer exist. During any such period, all LIBOR Rate
          Loans shall automatically convert into Base Rate Loans at the end of
          the applicable Interest Period or sooner if required by law.

               (b) If the Agent is unable to determine the LIBOR Rate in respect
          of a requested Interest Period or the Majority Lenders are unable to
          obtain deposits of United States dollars in the London interbank
          market in the applicable amounts and for the requested Interest
          Period, then, upon notice from the Agent to the Company, the
          obligation of the Lenders to make or continue LIBOR Rate Loans, or to
          convert Base Rate Loans into LIBOR Rate Loans, shall be suspended
          until the Agent notifies the Company that the circumstances causing
          such suspension no longer exist.

               (c) If any Lender shall incur any loss or expense (including any
          loss or expense incurred by reason of a liquidation or redeployment of
          deposits or other funds acquired by such Lender to make, continue or
          maintain any portion of a LIBOR Rate Loan, or to convert any portion
          of a Base Rate Loan into a LIBOR Rate Loan) as a result of: (i) any
          conversion or repayment or prepayment of the principal amount of LIBOR
          Rate Loan on a date other than the last day of the Interest Period
          applicable thereto (whether as a result of

                                       19
<PAGE>

          acceleration, prepayment or otherwise); (ii) any Revolving Loan not
          being made as a LIBOR Rate Loan in accordance with the Notice of
          Borrowing therefor; or (iii) any Loan not being continued as, or
          converted into, a LIBOR Rate Loan in accordance with the Continuation/
          Conversion Notice therefore, then, upon written notice from such
          Lender to the Company, the Company shall, within ten days of its
          receipt thereof, pay to such Lender such amount as will (in the
          reasonable determination of such Lender) reimburse such Lender for
          such loss or expense. Such written notice (which shall include
          calculations in reasonable detail) shall, in the absence of manifest
          error, be conclusive and binding on the Company.

         2.12  Setoff. Each Lender shall, upon the occurrence and during the
     continuance of an Event of Default, have the right to apply to the payment
     of any Note held by such Lender (whether or not then due) any and all
     balances, credits, deposits, accounts or monies of the Company then or
     thereafter maintained with such Lender. Each Lender agrees to promptly
     notify the Company and the Agent after any such setoff and application made
     by such Lender; provided, however, that the failure to give such notice
     shall not affect the validity of such setoff and application.

         2.13  Pro Rata Treatment; Sharing of Payments.

               (a) Except as otherwise provided in this Agreement, all payments
          of principal, interest and fees made by the Company shall be
          distributed pro rata to the Lenders according to their respective
          Percentages. If any Lender shall obtain any payment or other recovery
          (whether voluntary, involuntary, by application of setoff or
          otherwise) in excess of its pro rata share of payments then or
          therewith obtained by all Lenders, such Lender shall immediately
          purchase, without recourse and for cash, from the other Lenders, such
          participations in the Notes of such other Lenders so that each Lender
          shall thereafter have a percentage interest in all of such obligations
          equal to such Lender's Percentage; provided, however, that if any
          payment so received shall be recovered in whole or in part from such
          purchasing Lender, the purchase shall be rescinded and the purchase
          price restored to the extent of any such recovery, but without
          interest. The Company agrees that any Lender so purchasing a
          participation from another Lender pursuant to this section may, to the
          fullest extent permitted by law, exercise all of its rights of payment
          (including its right of setoff) with respect to such participation as
          if such Lender were the direct creditor of the Company in the amount
          of such participation.

               (b) Notwithstanding anything to the contrary contained in this
          Credit Agreement, any Lender that fails to make available to the Agent
          its pro rata share of any Loan as, when and to the full extent
          required by the

                                       20
<PAGE>

          provisions of this Credit Agreement, shall be deemed delinquent (a
          "Delinquent Lender") until such time as such delinquency is satisfied.
          A Delinquent Lender shall be deemed to have assigned any and all
          payments due to it from the Company to the Agent and the nondelinquent
          Lenders for application to, and reduction of, their respective pro
          rata shares of all outstanding Loans. The Delinquent Lender hereby
          authorizes the Agent to (i) retain such payments to the extent the
          Agent funded such delinquency or (ii) distribute such payments to the
          nondelinquent Lenders in proportion to their respective pro rata
          shares of all outstanding Loans to the extent the nondelinquent
          Lenders funded such delinquency. A Delinquent Lender shall be deemed
          to have satisfied in full a delinquency when and if, as a result of
          the application of the assigned payments to the Agent and/or the
          nondelinquent Lenders, all advances funded by the Agent have been
          repaid in full and the Lenders' respective pro rata shares of all
          outstanding Loans have returned to their respective Percentages.

         2.14  Capital Adequacy. As used in this section, the term "Regulatory
     Change" means any change enacted or issued after the date of this Agreement
     of any (or the adoption after the date of this Agreement of any new)
     federal or state law, regulation, interpretation, direction, policy or
     guideline, or any court decision, which affects (or, in the case of a court
     decision would, if the decision were applicable to any Lender, affect) the
     treatment of any Loan or any commitment of any Lender hereunder as an asset
     or other item included for the purpose of calculating the appropriate
     amount of capital to be maintained by such Lender or any corporation
     controlling such Lender. If such Regulatory Change has the effect of
     reducing the rate of return on such Lender's or such corporation's capital
     as a consequence of the Loans or commitments of such Lender hereunder to a
     level below that which such Lender or such corporation could have achieved
     but for such Regulatory Change (taking into account such Lender's or such
     corporation's policies with respect to capital adequacy) by an amount
     deemed in good faith by such Lender to be material, then from time to time
     following notice by such Lender to the Company of such Regulatory Change,
     within ten days after demand from such Lender, the Company shall pay to
     such Lender such additional amount or amounts as will compensate such
     Lender or such corporation, as the case may be, for such reduction.

         2.15  Yield Protection. If any law or any governmental rule,
     regulation, policy, guideline or directive (whether or not having the force
     of law), or any interpretation thereof, or the compliance of any Lender
     therewith,

               (a) subjects any Lender to any tax, duty, charge or withholding
          on or from payments due from the Company (excluding federal taxation
          of the overall net income of any Lender and any such tax, duty, charge
          or

                                       21
<PAGE>

          withholding in effect as of the date of this Agreement), or changes
          the basis of taxation of payments to any Lender in respect of its
          Loans or other amounts due it hereunder (excluding federal taxation of
          the overall net income of any Lender);

               (b) imposes or increases or deems applicable any reserve,
          assessment, insurance charge, special deposit or similar requirement
          against assets of, deposits with or for the account of, or credit
          extended by, any lender (other than reserves and assessments taken
          into account in determining the interest rate applicable to LIBOR Rate
          Loans) with respect to its Loans; or

               (c) imposes any other condition the result of which is to
          increase the cost to any Lender of making, funding or maintaining the
          Loans or reduces any amount received by any Lender in connection with
          the Loans or requires any Lender to make any payment calculated by
          reference to the amount of Loans held or interest received by it, by
          an amount deemed material by such Lender;

then, within ten days of demand by such Lender, the Company shall pay such
Lender that portion of such increased expense incurred or reduction in an amount
received which such Lender determines is attributable thereto.

         2.16  Taxes.

               (a) Any and all payments by the Company hereunder or under the
          Notes shall be made, in accordance with sections 2.9 and 2.10 free and
          clear of and without deduction for any and all present or future
          taxes, levies, imposts, deductions, charges or withholdings, and all
          liabilities with respect thereto, excluding in the case of each Lender
          and the Agent, taxes imposed on or measured by net income or overall
          gross receipts, and capital and franchise taxes imposed on it (all
          such non-excluded taxes, levies, imposts, deductions, charges,
          withholdings and liabilities being hereinafter referred to as
          "Taxes"). Subject to the provisions of subsection 2.16(h) below, if
          the Company shall be required by law to deduct any Taxes from or in
          respect of any sum payable hereunder or under any Note to any Lender
          or the Agent, (i) the sum payable shall be increased as may be
          necessary so that after making all required deductions (including
          deductions applicable to additional sums payable under this section
          2.16) such Lender or the Agent (as the case may be) receives an amount
          equal to the sum it would have received had no such deductions been
          made, (ii) the Company shall make such deductions and (iii) the
          Company shall pay the full amount deducted to the relevant taxation
          authority or other authority in accordance with applicable law.

                                       22
<PAGE>

               (b) In addition, the Company agrees to pay any present and future
          stamp and documentary taxes and any other excise and property taxes,
          charges and similar levies which arise from any payment made hereunder
          or under the Notes or the other Loan Documents or from the execution,
          delivery or registration of, or otherwise with respect to, this
          Agreement or the Notes or the other Loan Documents (the foregoing are
          collectively referred to herein as "Other Taxes").

               (c) Except to the extent the Company makes payments pursuant to
          subsections (a) or (b) above, and subject to the provisions of
          subsection (h) below, the Company will indemnify each Lender and the
          Agent against, and reimburse each on demand for, the full amount of
          Taxes and Other Taxes (including, without limitation, any Taxes and
          Other Taxes imposed by any jurisdiction on amounts payable under this
          section 2.16) incurred or paid by such Lender or the Agent (as the
          case may be) or any of their respective affiliates and any liability
          (including penalties, interest and expenses) arising therefrom or with
          respect thereto, whether or not such Taxes or Other Taxes were
          correctly or legally asserted. Each Lender agrees, within a reasonable
          time after receiving a written request from the Company, to provide
          the Company and the Agent with such certificates as are reasonably
          required, and take such other actions as are reasonably necessary, to
          claim such exemptions as such Lender may be entitled to claim in
          respect of all or a portion of any Taxes or Other Taxes which are
          otherwise required to be paid or deducted or withheld pursuant to this
          section 2.16 in respect of any payments under this Agreement or under
          the Notes.

               (d) Within 90 days after the close of each fiscal year of the
          Company, the Company will furnish to the Agent, at its address
          referred to in section 11.4, the original or a certified copy of a
          receipt evidencing payment of any Taxes or Other Taxes during such
          fiscal year.

               (e) Each Lender that is not created or organized under the laws
          of the United States or a political subdivision thereof shall deliver
          to the Company and the Agent on the date hereof (i) [a] two duly
          completed copies of IRS Form 1001 (or any successor or substitute form
          or forms) if such Lender claims eligibility to receive payments
          hereunder and under the Notes or other documents without deduction or
          withholding of United States federal income tax under the provisions
          of an applicable tax treaty concluded by the United States or [b] two
          duly completed copies of IRS Form 4224 (or any successor or substitute
          form or forms) if the Lender claims such eligibility under sections
          1441(c)(1) and 1442(a) of the Code. Each such Lender shall amend or

                                       23
<PAGE>

          deliver such additional IRS Forms as required by law and to the extent
          legally entitled to do so.

               (f) Any Lender claiming any additional amounts payable pursuant
          to this section 2.16 shall use its best efforts (consistent with its
          internal policy and legal and regulatory restrictions) to take any
          actions permissible if the taking of such action would avoid the need
          for, or reduce the amount of, any such additional amounts which may
          thereafter accrue and would not, in the reasonable judgment of such
          Lender, be otherwise disadvantageous to such Lender including changing
          the jurisdiction of its lending office. If such additional amounts
          cannot be eliminated by such actions, the Company shall have the right
          to replace the affected Lender hereunder with a Lender not so affected
          which is reasonably acceptable to the Agent and the remaining Majority
          Lenders upon payment to such affected Lender of outstanding principal,
          accrued interest and fees and all other amounts due pursuant to this
          Agreement, including any amounts payable hereunder and under sections
          2.11, 2.14 and 2.15. No replacement of a Lender shall be made pursuant
          hereto if, after giving affect thereto, any amount shall be owing the
          replaced Lender hereunder.

               (g) Without prejudice to the survival of any other agreement of
          the Company under this Agreement, the agreements and obligations of
          the Company, the Lenders or the Agent contained in this section 2.16
          shall survive the payment in full of principal and interest under this
          Agreement and under the Notes.

               (h) Notwithstanding the provisions of section 2.16(a) and 2.16(c)
          above, the Company shall not be required to pay any additional amounts
          thereunder to a Lender if (i) the obligation to pay such additional
          amounts would not have arisen but for a failure of the Lender to
          comply with requirements described in section 2.16(e) and an exemption
          would have been available to such Lender or (ii) the Lender shall not
          have furnished the Company with such forms or shall not have taken
          such other action as reasonably may be available to it under
          applicable tax laws and any applicable tax treaty to obtain an
          exemption from, or reduction (to the lowest applicable rate) of
          withholding of such United States federal income tax and an exemption
          would have been available to such Lender; provided, however, that the
          Company's obligation to pay such additional amounts shall be
          reinstated upon receipt of such forms or evidence that action with
          respect to obtaining such exemption or reduction has been taken.

         2.17  Other Fees. [reserved]

                                       24
<PAGE>

         2.18  Use of Proceeds. The Company shall use Loan proceeds solely for
     the purpose of refinancing existing Indebtedness, corporate acquisitions,
     working capital needs and for other general corporate and lawful purposes.

     3.  Representations and Warranties. In order to induce the Lenders to make
the Loans, the Company represents and warrants to the Lenders that:

         3.1   Organization; Subsidiaries; Corporate Power. The Company is a
     corporation validly existing under the laws of the State of Wisconsin and
     (a) the Company has filed with the Wisconsin Department of Financial
     Institutions the required annual report for its most recently completed
     report year, (b) the Company is not the subject of a proceeding under
     Wisconsin Statutes section 180.1421 to cause its dissolution, (c) no filing
     has been made with the Wisconsin Department of Financial Institutions of a
     decree of dissolution with respect to the Company and (d) neither the
     shareholders nor the Board of Directors of the Company have taken any
     action authorizing the liquidation or dissolution of the Company. The
     Company is duly qualified as a foreign corporation to do business and is in
     good standing in every jurisdiction in which the nature of its business or
     the ownership of its properties requires such qualification and in which
     the failure to so qualify would materially adversely affect the business
     operations or financial condition of the Company. Schedule 3.1 contains the
     name, state of incorporation and number of authorized and outstanding
     shares of each class of stock of each Subsidiary and the number thereof
     owned by the Company. Each Subsidiary is validly existing and in good
     standing in the state of its incorporation and each is duly qualified as a
     foreign corporation and is in good standing in every jurisdiction in which
     the nature of its business or the ownership of its properties requires such
     qualification and in which the failure to so qualify would materially
     adversely affect the business operations or financial condition of such
     Subsidiary. The Company and each Subsidiary has the corporate power to own
     its properties and carry on its business as currently being conducted.

         3.2   Authorization and Binding Effect. The execution and delivery by
     the Company of the Loan Documents to which it is a party, and the
     performance by the Company of its obligations thereunder, are within its
     corporate power, have been duly authorized by proper corporate action on
     the part of the Company, are not in violation of any existing law, rule or
     regulation of any governmental agency or authority, any order or decision
     of any court, the Articles of Incorporation or By-Laws of the Company or
     the terms of any agreement, restriction or undertaking to which the Company
     is a party or by which it is bound, and do not require the approval or
     consent of the shareholders of the Company,

                                       25
<PAGE>

     any governmental body, agency or authority or any other person or entity.
     The Loan Documents to which the Company is a party, when executed and
     delivered, will constitute the valid and binding obligations of the Company
     enforceable in accordance with their terms, except as limited by
     bankruptcy, insolvency or similar laws of general application affecting the
     enforcement of creditors' rights and except to the extent that general
     principles of equity might affect the specific enforcement of such Loan
     Documents.

         3.3   Financial Statements. The Company has furnished to the Lenders
     (a) the consolidated balance sheet of the Company and its Consolidated
     Subsidiaries as of December 31, 1999, and related statements of income,
     retained earnings and cash flows for the year ended on that date, certified
     by Arthur Anderson LLP, and (b) the consolidated balance sheet of the
     Company and its Consolidated Subsidiaries dated December 31, 1999 and
     related statements of income and retained earnings for the period ended on
     such date, prepared by the Company. Such financial statements were prepared
     in accordance with GAAP consistently applied throughout the periods
     involved, are correct and complete and fairly present the consolidated
     financial condition of the Company and such Subsidiaries as of such dates
     and the results of their operations for the periods ended on such dates,
     subject, in the case of the interim statements, to normal year-end
     adjustments. There has been no material adverse change in the condition or
     prospects of the Company or its Consolidated Subsidiaries, financial or
     otherwise, since the date of the most recent financial statement furnished
     to the Lenders.

         3.4   Litigation. Except for the matters described on Schedule 3.4,
     there is no litigation or administrative proceeding pending or, to the
     knowledge of the Company, threatened against or affecting the Company or
     any Subsidiary or the properties of the Company or any Subsidiary which if
     determined adversely would have a material adverse effect upon the
     business, financial condition or properties of the Company or such
     Subsidiary.

         3.5   Restricted Payments. The Company has not, since the date of the
     most recent financial statements referred to in section 3.3, made any
     Restricted Payments except for Restricted Payments permitted under section
     6.1.

         3.6  Indebtedness; No Default. Neither the Company nor any Subsidiary
     has any outstanding Indebtedness, Guaranty Obligations or Lease
     Obligations, except those permitted under sections 6.2, 6.3 and 6.4. There
     exists no default nor has any act or omission occurred which, with the
     giving of notice or the passage of time, would constitute a default under
     the provisions of (a) any instrument evidencing such Indebtedness, Guaranty
     Obligations or Lease Obligations or any agreement relating thereto or (b)
     any other agreement or

                                       26
<PAGE>

     instrument to which the Company or any Subsidiary is a party and which is
     material to the financial condition, business operations or prospects of
     the Company or such Subsidiary.

         3.7  Ownership of Properties; Liens and Encumbrances. The Company and
     each Subsidiary has good and marketable title to all property, real and
     personal, reflected on the most recent financial statement of the Company
     furnished to the Lenders, and all property purported to have been acquired
     since the date of such financial statement, except property sold or
     otherwise disposed of in the ordinary course of business subsequent to such
     date; and all such property is free of any lien, security interest,
     mortgage, encumbrance or charge of any kind or any agreement not to grant a
     security interest, mortgage or lien, except Permitted Liens. All owned and
     leased buildings and equipment of the Company and each Subsidiary are in
     good condition, repair and working order (reasonable wear and tear
     excepted) and, to the Company's knowledge, conform in all material respects
     to all applicable laws, ordinances and regulations.

         3.8   Tax Returns Filed. The Company and each Subsidiary has filed when
     due all federal and state income and other tax returns which are required
     to be filed. The Company has paid or made provision for the payment of all
     taxes shown on such returns, and on all assessments received by it to the
     extent that such taxes or assessments have become due, except any such
     taxes or assessments which are being contested in good faith by appropriate
     proceedings and for which adequate reserves in accordance with GAAP have
     been established. The Company has no knowledge of any liabilities which may
     be asserted against it or any Subsidiary upon audit of its federal or state
     tax returns.

         3.9   Margin Stock. The Company will not use, directly or indirectly,
     any part of the proceeds of any Note for the purpose of purchasing or
     carrying, or to extend credit to others for the purpose of purchasing or
     carrying, any margin stock within the meaning of Regulation U of the Board
     of Governors of the Federal Reserve System, or any amendments thereto.
     Neither the Company nor any Subsidiary is engaged principally, or as one of
     its important activities, in the business of extending credit for the
     purpose of purchasing or carrying margin stock.

         3.10  Investment Company. The Company is not an "investment company" or
     a company controlled by an "investment company" within the meaning of the
     Investment Company Act of 1940, as amended.

         3.11  ERISA Liabilities. The Company has no knowledge of the occurrence
     of any event with respect to any Plan which could result in a

                                       27
<PAGE>

     liability of the Company or any Subsidiary or any member of the Controlled
     Group to any Plan, the Internal Revenue Service or to the Pension Benefit
     Guaranty Corporation other than the payment of contributions in the normal
     course or premiums (but not a late payment charge) pursuant to section 4007
     of ERISA. With respect to any Plan there is no (a) accumulated funding
     deficiency within the meaning of section 412(a) of the Code; (b)
     nondeductible contribution to any Plan within the meaning of section 4972
     of the Code; (c) excess contribution within the meaning of section 4979(c)
     of the Code which would result in tax under section 4979(a) of the Code;
     (d) prohibited transaction within the meaning of ERISA section 406 which is
     not exempt under ERISA section 408; (e) failure to make required
     contributions to any Multiemployer Plan; or (f) withdrawal or partial
     withdrawal from any Multiemployer Plan within the meaning of ERISA sections
     4203 and 4205.

         3.12  No Burdensome Agreements. Neither the Company nor any Subsidiary
     is a party to or bound by any agreement, instrument or undertaking, or
     subject to any other restriction (a) which materially adversely affects, or
     is likely in the future to so affect, the property, financial condition or
     business operations of the Company or any Subsidiary or (b) under or
     pursuant to which the Company or any Subsidiary is or will be required to
     grant (or under which any other Person may obtain) a security interest or
     lien upon any of its property (other than a Permitted Lien), either upon
     demand or upon the fulfillment of a condition, with or without demand.

         3.13  Trademarks, Etc. The Company and each Subsidiary possesses
     adequate trademarks, trade names, copyrights, patents, permits, service
     marks and licenses, or rights thereto, for the present and planned future
     conduct of their respective businesses substantially as now conducted,
     without any known conflict with the rights of others which would result in
     a material adverse effect on the Company or any Subsidiary.

         3.14  Dump Sites. With respect to the period during which the Company
     or any Subsidiary owned or occupied its real estate, and to the Company's
     knowledge after reasonable investigation, with respect to the time before
     the Company or any Subsidiary owned or occupied its real estate, no person
     or entity has caused or permitted materials to be stored, deposited,
     treated, recycled or disposed of on, under or at any real estate owned or
     occupied by the Company or any Subsidiary, which materials, if known to be
     present, would require cleanup, removal or some other remedial action under
     Environmental Laws.

                                       28
<PAGE>

         3.15  Tanks. There are not now, to the Company's knowledge after
     reasonable investigation, tanks or other facilities on, under, or at any
     real estate owned or occupied by the Company or any Subsidiary which
     contain materials which, if known to be present in soils or ground water,
     would require cleanup, removal or some other remedial action under
     Environmental Laws.

         3.16  Other Environmental Conditions. There are no conditions existing
     which would subject the Company or any Subsidiary to damages, penalties,
     injunctive relief or cleanup costs under any Environmental Laws or which
     require or are likely to require cleanup, removal, remedial action or other
     response pursuant to Environmental Laws by the Company or any Subsidiary.

         3.17  Changes in Laws. To the Company's knowledge after reasonable
     investigation, there are no proposed or pending changes in Environmental
     Laws that would adversely affect the Company or any Subsidiary.

         3.18  Environmental Judgments, Decrees and Orders. Neither the Company
     nor any Subsidiary is subject to any judgment, decree, order or citation
     related to or arising out of Environmental Laws. Except as set forth in
     Schedule 3.18, neither the Company nor any Subsidiary has been named as a
     potentially responsible party by a governmental body or agency in a matter
     arising under any Environmental Law.

         3.19  Environmental Permits and Licenses. The Company and each
     Subsidiary has all permits, licenses and approvals required under
     Environmental Laws.

         3.20  Year 2000. Except as set forth on Schedule 3.20 attached hereto,
     the information technology systems used by the Company and its Subsidiaries
     in their business operations accurately process date/time data (including
     without limitation calculating, comparing and sequencing) from, into and
     between the twentieth and twenty-first centuries, the year 1999 and 2000
     and leap year calculations.

         3.21  Accuracy of Information. All information furnished by the Company
     to the Lenders is true, correct and complete in all material respects as of
     the date furnished and does not contain any untrue statement of a material
     fact or omit to state a material fact necessary to make such information
     not misleading.

                                       29
<PAGE>

     4.  Conditions for Borrowing. The Lenders' obligations to make Loans is
subject to the satisfaction, on or before the following Borrowing Dates, of the
following conditions:

         4.1   On or Before the Effective Date. The Agent shall have received
     the following, all in form, detail and content satisfactory to the Lenders:

               (a) Certified Articles of Incorporation. A copy of the Articles
          of Incorporation of the Company, certified as of a recent date by the
          Wisconsin Department of Financial Institutions.

               (b) Certificates of Status and Good Standing. Certificates of
          status and good standing with respect to the Company, issued as of a
          recent date by the Secretary of State (or comparable governmental
          authority) of each state in which the Company is incorporated or is
          qualified to transact business as a foreign corporation.

               (c) Closing Certificate. Copies, certified by the Secretary of
          the Company to be true and correct and in full force and effect on the
          Effective Date, of (i) the By-Laws of the Company; (ii) resolutions of
          the Board of Directors of the Company authorizing the execution and
          delivery of the Loan Documents to which the Company is a party; and
          (iii) a statement containing the names and titles of the officer or
          officers of the Company authorized to sign such Loan Documents,
          together with true signatures of such officers.

               (d) Notes. The Notes, duly executed by the Company.

               (e) Personal Property Searches. Searches of the appropriate
          public offices demonstrating that no security interest, tax lien,
          judgment lien or other charge or encumbrance is of record affecting
          the Company or its properties except those which are acceptable to the
          Agent.

               (f) Bring-Down Certificate. A certificate dated the Effective
          Date and signed by the President or any Vice President of the Company,
          certifying that (i) the representations and warranties of the Company
          contained in section 3 hereof are true and correct as of the Effective
          Date and (ii) no Default or Event of Default exists as of the
          Effective Date.

               (g) Opinion of Counsel. An opinion from Wayne E. Larsen, Esq.,
          general counsel of the Company, in the form of Exhibit E attached
          hereto.

                                       30
<PAGE>

               (h) Proceedings Satisfactory. Such other documents as the Lenders
          may reasonably request; and all proceedings taken in connection with
          the transactions contemplated by this Agreement, and all instruments,
          authorizations and other documents applicable thereto, shall be
          satisfactory to the Lenders.

         4.2   On or Before Each Subsequent Borrowing Date:

               (a) Borrowing Procedure. The Company shall have complied with the
          borrowing procedure specified in section 2.3.

               (b) Representations and Warranties True and Correct. The
          representations and warranties contained in section 3 hereof and in
          the other Loan Documents shall be true and correct on and as of the
          relevant Borrowing Date except (i) that the representations and
          warranties contained in section 3.3 shall apply to the most recent
          financial statements delivered pursuant to sections 5.1 and 5.2 and
          (ii) for changes contemplated or permitted by this Agreement.

               (c) No Default. There shall exist on that Borrowing Date no
          Default or Event of Default.

               (d) Proceedings and Documentation. The Lenders shall have
          received such instruments and other documents as they may reasonably
          request in connection with the making of such Loans, and all such
          instruments and documents shall be in form and content satisfactory to
          the Lenders.

     5.  Affirmative Covenants. The Company covenants that it will, at all times
on and after the Effective Date until the Lenders' Revolving Loan Commitment has
terminated or expired, and the Notes, and all fees and expenses payable
hereunder, have been paid in full:

         5.1   Annual Financial Statement. Furnish to the Agent within 90 days
     after the end of each fiscal year of the Company a copy for each Lender of
     a balance sheet of the Company and its Consolidated Subsidiaries as of the
     close of such fiscal year and related statements of income, retained
     earnings and cash flows for such year, setting forth in each case in
     comparative form corresponding figures from the preceding annual audit, all
     in reasonable detail and satisfactory

                                       31
<PAGE>

     in scope to the Lenders, prepared in accordance with GAAP applied on a
     consistent basis, accompanied by the unqualified opinion of a firm of
     independent certified public accountants selected by the Company and
     satisfactory to the Lenders. Each annual financial statement shall be
     accompanied by a written statement from the accounting firm which prepared
     the same containing a computation showing whether or not the Company is in
     compliance with the financial covenants contained in section 6. All such
     financial statements, and the financial statements referred to in section
     5.2, shall be furnished in consolidated form for the Company and all
     Consolidated Subsidiaries which it may at the time have.

         5.2   Interim Financial Statements. Furnish to the Agent within 45 days
     after the end of each fiscal quarter of the Company a copy for each Lender
     of the consolidated balance sheet of the Company and its Consolidated
     Subsidiaries as of the end of such fiscal quarter, together with the
     related statements of income and retained earnings for the period from the
     beginning of the fiscal year to the end of such period, prepared in the
     manner set forth in section 5.1 for the annual statements, certified,
     subject to audit and normal year-end adjustments, to be accurate and
     complete by an authorized financial representative of the Company and
     accompanied by the certificate of such representative (i) containing
     computations showing whether or not the Company is in compliance with the
     financial covenants set forth in section 6 and (ii) to the effect that
     there exists no Default or Event of Default or, if any Default or Event of
     Default exists, specifying the nature thereof, the period of existence
     thereof and what action the Company proposes to take with respect thereto.

         5.3   Management Letters. Furnish to the Agent, promptly upon receipt,
     copies for each Lender of all management letters and detailed audit reports
     submitted to the Company by its independent certified public accountants.

         5.4   Other Financial Information. Furnish to the Agent, as soon as
     available, copies for each Lender of all reports submitted to the
     shareholders of the Company in their capacity as shareholders, and such
     other financial information as any Lender may from time to time reasonably
     request.

         5.5   Books and Records; Inspection. Keep and cause each Subsidiary to
     keep proper, complete and accurate books of record and account and permit
     any representatives of the Agent or any Lender to visit and inspect any of
     the properties and examine and copy any of the books and records of the
     Company or any Subsidiary at any reasonable time and as often as may
     reasonably be desired.

         5.6   Insurance. Maintain and cause each Subsidiary to maintain
     insurance coverage as may be required by law but in any event not less than
     insurance coverage, in the forms, amounts and with companies, which would

                                       32
<PAGE>

     be carried by prudent management in connection with similar properties and
     businesses. Without limiting the foregoing, the Company will and will cause
     each Subsidiary to (a) keep all its physical property insured against fire
     and extended coverage risks in amounts and with deductibles at least equal
     to those generally maintained by businesses engaged in similar activities
     in similar geographic areas; (b) maintain all such worker's compensation
     and similar insurance as may be required by law; and (c) maintain, in
     amounts and with deductibles at least equal to those generally maintained
     by businesses engaged in similar activities in similar geographic areas,
     general public liability insurance against claims for bodily injury, death
     or property damage occurring on, in or about the properties of the Company
     or such Subsidiary, business interruption insurance and product liability
     insurance.

         5.7   Condition of Property. Keep and cause each Subsidiary to keep its
     properties (whether owned or leased) in good condition, repair and working
     order (reasonable wear and tear excepted).

         5.8   Payment of Taxes. Pay and discharge, and cause each Subsidiary to
     pay and discharge, all lawful taxes, assessments and governmental charges
     upon it or against its properties prior to the date on which penalties are
     attached thereto, unless and to the extent only that the same shall be
     contested in good faith and by appropriate proceedings by the Company or
     the appropriate Subsidiary and appropriate reserves with respect thereto
     are established and maintained in accordance with GAAP.

         5.9   Compliance with Law. Do and, except as permitted under section
     6.6, cause each Subsidiary to do all things necessary to (a) maintain its
     corporate existence in its state of incorporation and maintain its
     qualification as a foreign corporation in any other state where the
     ownership of property or the conduct of business make qualification
     necessary and where the failure to so qualify would have a material adverse
     effect upon its business, operations or financial condition, (b) preserve
     and keep in full force and effect its rights and franchises necessary to
     continue its business and (c) comply with all applicable laws, regulations
     and ordinances, including all applicable Environmental Laws, except those
     being contested in good faith and involving no possibility of criminal
     liability, if and to the extent that the failure to so comply would have a
     material adverse affect upon the Company and its Subsidiaries taken as a
     whole.

         5.10  ERISA Certificate. Comply and cause each Subsidiary to comply
     with all applicable requirements of ERISA for each Plan and furnish to the
     Agent, as soon as possible and in any event within 30 days after the
     Company shall have obtained knowledge that a Reportable Event has occurred
     with respect

                                       33
<PAGE>

     to any Plan, a certificate of an officer of the Company setting forth the
     details as to such Reportable Event and the action which the Company
     proposes to take with respect thereto, and a copy of each notice of a
     Reportable Event sent to the Pension Benefit Guaranty Corporation by the
     Company and, with respect to a Multiemployer Plan, furnish to the Agent as
     soon as possible after the Company receives notice or obtains knowledge
     that the Company or any member of the Controlled Group may be subject to
     withdrawal liability, or required to post a bond to avoid such liability,
     to a Multiemployer Plan, a certificate of an officer of the Company setting
     forth the details as to such event and the actions which the Company plans
     to take with respect thereto.

         5.11  Compliance with Other Loan Documents. Timely comply with all of
     its obligations under the other Loan Documents.

         5.12  Notice of Default or Claimed Default. Furnish to the Agent (a)
     immediately upon becoming aware of any Default or Event of Default, a
     written notice specifying the nature and period of existence thereof and
     what action the Company is taking or proposes to take with respect thereto;
     (b) immediately upon becoming aware that the holder of any other
     Indebtedness issued or assumed by the Company or any Subsidiary, or the
     lessor under any lease as to which the Company or any Subsidiary is the
     lessee, has given notice or has taken any action with respect to a claimed
     default thereunder, or under any agreement under which any such
     Indebtedness was issued or secured, a written notice specifying the notice
     given or action taken, the nature of the claimed default and what action
     the Company is taking or proposes to take with respect thereto; (c)
     immediately upon receipt, copies of any correspondence, notice, pleading,
     citation, indictment, complaint, order, decree or other document from any
     governmental authority or court asserting or alleging a circumstance or
     condition which requires or may require a financial contribution by the
     Company or a cleanup, removal, remedial action or other response by or on
     the part of the Company or any Subsidiary under Environmental Laws or which
     seeks damages or civil, criminal or punitive penalties from the Company or
     any Subsidiary for an alleged violation of Environmental Laws which, in any
     such case, is likely to have a material adverse effect on the financial
     condition or business operations of the Company or any Subsidiary; and (d)
     written notice of any condition or event which would make the warranties
     contained in section 3 inaccurate, as soon as the Company becomes aware of
     such condition or event.

     6.  Negative Covenants. The Company covenants that, without the prior
written consent of the Majority Lenders, it will not, and will not permit any
Subsidiary to, at any time on or after the Effective Date until the Lenders'

                                       34
<PAGE>

Revolving Loan Commitment has terminated or expired, and the Notes, and all fees
and expenses payable hereunder, have been paid in full:

         6.1  Restricted Payments. Make any Restricted Payments except that so
     long as no Default or Event of Default exists the Company may make
     Restricted Payments if, after giving effect thereto, the aggregate amount
     of Restricted Payments made during the period after December 31, 1997, to
     and including the date of making the Restricted Payment in question, does
     not exceed 50% of the Company's Net Earnings for such period computed on a
     cumulative basis for said entire period.

         6.2   Limitations on Indebtedness. Create, incur, assume or permit to
     exist any Indebtedness except (a) Indebtedness owed to the Lenders
     hereunder; (b) Indebtedness secured by Permitted Liens; (c) Subordinated
     Debt; (d) Indebtedness permitted under section 6.7(e); and (e) Indebtedness
     arising in connection with a Permitted Swap Contract.

         6.3   Limitations on Guaranty Obligations. Create, incur, assume or
     permit to exist any Guaranty Obligations except for (a) the endorsement of
     negotiable or nonnegotiable instruments for collection in the ordinary
     course of business, and (b) Guaranty Obligations in favor of a Lender; and
     (c) Guaranty Obligations described on Schedule 6.3 existing on the date of
     this Agreement, provided that the principal amount thereof shall not be
     increased.

         6.4   Limitations on Lease Obligations. Permit the aggregate Lease
     Obligations of the Company and its Subsidiaries to exceed $1,000,000 due in
     any fiscal year of the Company.

         6.5   Limitations on Liens and Encumbrances. Create, assume or permit
     to exist any mortgage, security interest, lien or charge of any kind,
     including any restriction against mortgages, security interests, liens or
     charges upon any of its other property or assets, whether now owned or
     hereafter acquired, except for Permitted Liens.

         6.6   Limitations on Mergers, Etc. Merge or consolidate with or into
     any other corporation or entity or sell, lease, transfer or otherwise
     dispose of in a single transaction or a series of transactions, all or a
     substantial part of its assets (other than sales made in the ordinary
     course of business), except that any Subsidiary may merge into, or transfer
     all or a substantial part of its assets to the Company or to a Subsidiary
     wholly owned by the Company.

         6.7   Limitations on Acquisitions, Advances and Investments. Acquire
     stock issued by a corporation, all or substantially all of the

                                       35
<PAGE>

     assets of any Person, an ownership interest in any limited liability
     company or any partnership or joint venture interest or make any loan,
     advance or extension of credit to any Person except (a) the purchase of
     United States government bonds and obligations; (b) extensions of credit to
     customers in the ordinary course of business of the Company or any
     Subsidiary; (c) the purchase of bank certificates of deposit issued by a
     bank having a long-term certificate of deposit rating of A or better from
     Standard & Poor's Rating Services (or an equivalent rating from another
     national rating agency), (d) commercial paper with a maturity not exceeding
     90 days; (e) investments of the Company in any Subsidiary in existence on
     the Closing Date, and loans and advances to wholly owned Subsidiaries of
     the Company and advances by any Subsidiary to the Company or to another
     wholly owned Subsidiary; (f) deposits in deposit accounts at banks; (g)
     investments in bank repurchase agreements; (h) loans and advances to
     employees and agents in the ordinary course of business for travel and
     entertainment expenses and similar items; (i) partnership and joint
     ventures entered into in the ordinary course of business; (j) nonhostile
     acquisitions of the assets or 100% of the stock or other ownership interest
     of a Person; and (k) the purchase by the Company of its stock to the extent
     permitted under section 6.1.

         6.8   Lines of Business. Engage or permit any Subsidiary to engage in
     any business other than those in which it is now engaged and any business
     directly related thereto if, as a result thereof, the general nature of the
     businesses engaged in by the Company and its Subsidiaries on a consolidated
     basis would be substantially changed from the general nature of their
     businesses as of the Closing Date.

         6.9   Sales of Receivables. Discount or sell with recourse, or sell for
     less than the face amount thereof, any of its notes or accounts receivable.

         6.10  Sales of Subsidiaries. Sell or otherwise dispose of any stock (or
     other ownership interest), or securities convertible into stock (or other
     ownership interest), of any Subsidiary except to the Company or to a
     Subsidiary wholly owned by the Company.

         6.11  Sale and Leaseback. Sell or transfer any fixed assets and then or
     thereafter rent or lease as lessee any such assets.

         6.12  Indebtedness to Capitalization Ratio. Permit the Indebtedness to
     Capitalization Ratio to exceed 0.55 to 1.0 at any time.

                                       36
<PAGE>

         6.13  Interest Coverage Ratio. Permit the Interest Coverage Ratio to be
     less than 3.00 to 1.00 at any time.

         6.14  Indebtedness to EBITDA Ratio. Permit the Indebtedness to EBITDA
     Ratio to exceed 2.00 to 1.0 at any time.

         6.15  Transactions with Affiliates. Enter into or be a party to any
     transaction with any Affiliate except as otherwise provided herein or in
     the ordinary course of business and upon fair and reasonable terms which
     are no less favorable than a comparable arm's length transaction with an
     entity which is not an Affiliate.

     7. Events of Default; Remedies.

         7.1   Events of Default. The occurrence of any of the following shall
     constitute an Event of Default:

               (a) Failure to Pay Note. The Company fails to pay (a) principal
          on any Note when due, whether at a stated payment date, or a date
          fixed by the Company for prepayment or by acceleration, or (b)
          interest on any Note, or any fee or other amount payable hereunder,
          when due and such default in payment of interest, fees or other
          amounts continues uncured for a period of five days; or

               (b) Falsity of Representations and Warranties. Any representation
          or warranty made in any Loan Document or in any writing furnished in
          connection with or pursuant to this Agreement or any other Loan
          Document is false in any material respect on the date as of which made
          or as of which the same is to be effective; or

               (c) Breach of Covenants. The Company fails to comply with any
          term, covenant or agreement contained in section 5 or 6 hereof; or

               (d) Breach of Other Provisions. The Company fails to comply with
          any other agreement contained herein and such default continues for a
          period of 30 days after written notice to the Company from the Agent;
          or

               (e) Default Under Other Agreements. The Company or any Subsidiary
          fails to pay when due any other Indebtedness issued or assumed by the
          Company or such Subsidiary or fails to comply with the terms of any
          agreement under which such Indebtedness was created and such default
          continues beyond the period of grace, if any, therein provided; or

                                       37
<PAGE>

               (f) Entry of Final Judgments. A final judgment is entered against
          the Company or any Subsidiary which, together with all unsatisfied
          final judgments entered against the Company and all Subsidiaries,
          exceeds the sum of $250,000, and such judgment shall remain
          unsatisfied or unstayed for a period of 60 days after the entry
          thereof; or

               (g) ERISA Liability. Any event in relation to any Plan which the
          Lenders determine in good faith could result in any of the occurrences
          set forth in section 3.11 above; or

               (h) Default Under Other Loan Documents. An "Event of Default" (as
          defined therein) shall occur under any other Loan Document or the
          party to any other Loan Document fails to timely comply with any term,
          covenant or agreement contained therein; or

               (i) Change In Control. Any Change in Control shall occur; or

               (j) Insolvency, Failure to Pay Debts or Appointment of Receiver,
          Etc. The Company or any Subsidiary becomes insolvent or the subject of
          state insolvency proceedings, fails generally to pay its debts as they
          become due or makes an assignment for the benefit of creditors; or a
          receiver, trustee, custodian or other similar official is appointed
          for, or takes possession of any substantial part of the property of,
          the Company or any Subsidiary; or

               (k) Subject of United States Bankruptcy Proceedings. The taking
          of corporate action by the Company or any Subsidiary to authorize such
          organization to become the subject of proceedings under the United
          States Bankruptcy Code; or the execution by the Company or any
          Subsidiary of a petition to become a debtor under the United States
          Bankruptcy Code; or the filing of an involuntary petition against the
          Company or any Subsidiary under the United States Bankruptcy Code
          which remains undismissed for a period of 60 days; or the entry of an
          order for relief under the United States Bankruptcy Code against the
          Company or any Subsidiary.

         7.2   Remedies. Upon the occurrence of any of the events described in
     sections 7.1(a) through 7.1(j), inclusive, the Agent shall, at the
     direction of the Majority Lenders, at the same or different times, take any
     of the following actions:

                                       38
<PAGE>

               (a) declare the Lenders' Revolving Loan Commitments to be
          terminated, whereupon the Lenders' Revolving Loan Commitments shall
          immediately terminate; or

               (b) declare the Loans, and all accrued interest thereon, to be
          immediately due and payable, whereupon the Loans, all accrued interest
          thereon and all other amounts owing or payable under the Loan
          Documents shall be immediately due and payable without presentment,
          demand, protest or notice of any kind, all of which are expressly
          waived by the Company.

     Promptly following the making of such declaration, the Agent shall give
notice thereof to the Company and each Lender but the failure to give such
notice shall not impair any of the effects of such declaration. Upon the
occurrence of any of the events described in section 7.1(k), the Lenders'
Revolving Loan Commitments shall immediately terminate, and the Notes, together
with accrued interest thereon and all other amounts owing or payable under the
Loan Documents shall be immediately due and payable without presentment, demand,
protest or notice of any kind, all of which are expressly waived by the Company.

     8.  The Agent.

         8.1   Appointment and Duties of the Agent. The Lenders hereby appoint
     Firstar, subject to the terms and conditions of this section 8, as the
     Agent for the Lenders under and for purposes of this Agreement and the
     other Loan Documents. Each of the Lenders hereby irrevocably, authorizes,
     and directs the Agent to take such action on its behalf and to exercise
     such powers hereunder as are delegated to the Agent herein, together with
     such powers as are reasonably incident thereto, in connection with the
     administration of and enforcement of any rights or remedies with respect to
     this Agreement and the other Loan Documents. The Agent shall use reasonable
     diligence to examine the face of each document received by it hereunder to
     determine whether such document, on its face, appears to be what it
     purports to be. However, the Agent shall not be under any duty to examine
     into or pass upon the validity or genuineness of any documents received by
     it hereunder and the Agent shall be entitled to assume that any of the same
     which appears regular on its face is genuine and valid and what it purports
     to be.

         8.2   Discretion and Liability of the Agent. Subject to sections 8.3,
     8.5 and 9.12 hereof, the Agent shall be entitled to use its discretion with
     respect to exercising or refraining from exercising any rights which may be
     vested in it by, or with respect to, taking or refraining from taking any
     action or actions which it may be able to take under or in respect of this
     Agreement and the other Loan Documents. Neither the Agent nor any of its
     directors, officers,

                                       39
<PAGE>

     employees, agents or representatives shall be liable for any action taken
     or not taken under any Loan Document in the absence of gross negligence or
     willful misconduct.

         8.3   Notice of Default. The Agent shall not be deemed to have
     knowledge or notice of the occurrence of any Default or Event of Default,
     except with respect to a failure by the Company to pay principal, interest
     or fees required to be paid to the Agent, unless the Agent has actual
     knowledge of such facts or has received notice from a Lender or the
     Company in writing that such Lender or the Company considers that a Default
     or Event of Default has occurred and is continuing and which specifies the
     nature thereof.

     If the Agent shall acquire actual knowledge of or receive notice from a
Lender or the Company that a Default or Event of Default has occurred, the Agent
shall promptly notify the Lenders and the Company of such Default or Event of
Default.

         8.4   Consultation. The Agent in good faith may consult with legal
     counsel or other advisors selected by it and shall be entitled to fully
     rely upon any opinion of such counsel or other advisor in connection with
     any action taken or not taken by the Agent in accordance with such opinion.

         8.5   Communications To and From the Agent. Upon any occasion requiring
     or permitting an approval, consent, waiver, election or other action on the
     part of the Lenders, unless action by the Agent alone is expressly
     permitted hereunder, action shall be taken by the Agent for and on behalf
     or for the benefit of the Lenders upon the direction of the Majority
     Lenders or, if required under section 9.12, all the Lenders. The Company
     may rely upon any communication from the Agent hereunder and need not
     inquire into the propriety of or authorization for such communication. Upon
     receipt by the Agent from the Company or any Lender of any communication
     calling for an action on the part of the Lenders, the Agent will, in turn,
     promptly inform the other Lenders in writing of the nature of such
     communication. In addition, the Agent shall forward to each Lender,
     promptly after receipt, copies of information provided by the Company
     pursuant to the requirements of the Loan Documents including, without
     limitation, the financial statements referred to in sections 5.1 and 5.2,
     and the notices referred to in section 5.12.

         8.6   Limitations of Agency. The Agent will act under the Loan
     Documents solely as the agent of the Lenders and only to the extent
     specifically set forth in the Loan Documents and will, under no
     circumstances, be considered to be a fiduciary of any nature whatsoever in
     respect of any other

                                       40
<PAGE>

     Person. The relationship between the Agent and the Lenders is that of agent
     and principal only and the Agent shall not be deemed to be a trustee or
     fiduciary for any Lender. The Agent may generally engage in any kind of
     banking or trust business with the Company as if it were not the Agent.

         8.7   No Representation or Warranty. No Lender (including the Agent)
     makes to any other Lender any representation or warranty, express or
     implied, or assumes any responsibility with respect to the execution,
     validity or enforceability of this Agreement or the other Loan Documents.

         8.8   Lender Credit Decision. Each Lender acknowledges that it has,
     independent of and without reliance upon any other Lender (including the
     Agent) or any information provided by any other Lender (including the
     Agent) and based upon the financial statements of the Company and such
     other documents and information as it has deemed appropriate, made its own
     credit analysis and decision to enter into this Agreement. Each Lender also
     acknowledges that it will, independent of and without reliance upon any
     other Lender (including the Agent) and based upon such documents and
     information as it shall deem appropriate at that time, continue to make its
     own credit decision in taking or not taking action under this Agreement and
     the other Loan Documents.

         8.9   Indemnity. Each Lender hereby indemnifies (which indemnity shall
     survive the termination of this Agreement) the Agent, pro rata according to
     such Lender's Percentage, from and against any and all liabilities,
     obligations, losses, damages, claims, costs, or expenses of any kind or
     nature whatsoever including reasonable attorneys' fees which may at any
     time be imposed on, incurred by, or asserted against, the Agent in any way
     related to or arising out of this Agreement or the other Loan Documents and
     as to which the Agent is not reimbursed by the Company; provided, however,
     that no Lender shall be liable for the payment of any portion of such
     liabilities, obligations, losses, damages, claims, costs or expenses which
     are determined by a court of competent jurisdiction in a final proceeding
     to have resulted solely from the Agent's gross negligence or willful
     misconduct. The Agent shall not be required to take any action hereunder or
     under any other Loan Document, or to prosecute or defend any suit in
     respect of the transactions contemplated hereby, unless it is indemnified
     hereunder to its satisfaction. If any indemnity in favor of the Agent shall
     be or become, in the Agent's determination, inadequate, the Agent may call
     for additional indemnification from the Lenders and cease to do the acts
     indemnified against hereunder until such additional indemnity is given.

         8.10  Resignation or Removal of Agent; Successor Agent. The Agent may
     resign as such at any time upon at least 30 days' prior notice to the

                                       41
<PAGE>

     Company and all Lenders. The Agent may be removed at any time by the
     Majority Lenders upon at least 30 days' prior notice by the Majority
     Lenders to the Company and the Agent, but only for cause consisting of its
     gross negligence or willful misconduct or following a declaration of
     insolvency by the appropriate regulators. If the Agent at any time shall
     resign or be removed, the Majority Lenders may appoint another Lender as a
     successor Agent which shall thereupon become the Agent hereunder. If no
     successor Agent shall have been so appointed by the Majority Lenders, and
     shall have accepted such appointment, within 30 days after the retiring
     Agent gives notice of resignation, then the retiring Agent may, on behalf
     of the Lenders, appoint the successor Agent, which shall be one of the
     Lenders. Upon the acceptance of any appointment as Agent hereunder by a
     successor Agent, such successor Agent shall be entitled to receive from the
     retiring Agent such documents of transfer and such assignments as such
     successor Agent may reasonably request, and shall thereupon succeed to and
     become vested with all rights, powers, privileges and duties of the
     retiring Agent and the retiring Agent shall be discharged from its duties
     and obligations as Agent under this Agreement.

     9.  Miscellaneous.

         9.1   Survival of Representations and Warranties. The Company's
     representations and warranties contained in section 3 hereof shall survive
     closing and execution and delivery of the Notes.

         9.2   Indemnification. The Company agrees to defend, indemnify and hold
     harmless the Agent, the Lenders and their respective directors, officers,
     employees and agents from and against any and all loss, cost, expense or
     liability (including reasonable attorneys' fees) incurred in connection
     with any and all claims or proceedings (whether brought by a private party
     or governmental agency) as a result of, or arising out of or relating to:

               (a) bodily injury, property damage, abatement or remediation,
          environmental damage or impairment or any other injury or damage
          resulting from or relating to any hazardous or toxic substance or
          contaminated material (as determined under Environmental Laws) located
          on or migrating into, from or through property previously, now or
          hereafter owned or occupied by the Company, which the Agent or any
          Lender may incur due to the making of the Loans, or otherwise;

               (b) any transaction financed or to be financed, in whole or in
          part, directly or indirectly, with the proceeds of any Loan; or

                                       42
<PAGE>

               (c) the entering into, performance of and exercise of their
          rights under this Agreement or any other Loan Document by the Agent,
          and the Lenders.

     This indemnity will survive the repayment of the Loans.

         9.3   Expenses. The Company agrees, whether or not the transaction
     hereby contemplated shall be consummated, to pay on demand (a) all
     out-of-pocket expenses incurred by the Agent or any Lender in connection
     with the negotiation, execution, administration, amendment or enforcement
     of this Agreement and the other Loan Documents, including reasonable
     counsel fees and expenses (provided that the maximum amount of fees and
     expenses incurred by each Lender in connection with the negotiation,
     execution, administration and amendment of this Agreement and the other
     Loan Documents to be reimbursed by the Company shall not exceed $1,000),
     (b) any taxes (including any interest and penalties relating thereto)
     payable by any Lender (other than taxes based upon such Lender's net
     income) on or with respect to the transactions contemplated by this
     Agreement (the Company hereby agreeing to indemnify each Lender with
     respect thereto) and (c) all out-of-pocket expenses, including reasonable
     counsel fees and expenses, incurred by the Agent or any Lender in
     connection with any litigation, proceeding or dispute in any way related to
     the Agent's and the Lenders' relationships with the Company, whether
     arising hereunder or otherwise, other than in connection with a successful
     action brought by the Company against a Lender for such Lender's breach of
     its obligations to the Company. The obligations of the Company under this
     section will survive payment of the Loans.

         9.4   Notices. All notices provided for herein shall be in writing and
     shall be (a) delivered; (b) sent by express or first-class mail; or (c)
     sent by facsimile transmission and confirmed in writing provided to the
     recipient in a manner described in (a) or (b), and, if to the Agent or a
     Lender, addressed to it at the address set forth below its signature, and
     if to the Company, addressed to it at 5481 South Packard Avenue, Cudahy,
     Wisconsin 53110, Attention: Wayne E. Larsen, Vice President Law/Finance,
     Facsimile No. 414-747-2890, or to such other address with respect to any
     party as such party shall notify the others in writing; such notices shall
     be deemed given when delivered or mailed or so transmitted.

         9.5   Assignments and Participations.

               (a) Any Lender may, with the written consent of the Company (at
          all times other than during the existence of an Event of Default) and
          the Agent, which consents shall not be unreasonably withheld, at any
          time assign

                                       43
<PAGE>

          and delegate to one or more Eligible Assignees (provided that no
          written consent of the Company or the Agent shall be required in
          connection with any assignment and delegation by a Lender to an
          Eligible Assignee that is an Affiliate of such Lender) (each an
          "Assignee") all, or any ratable part of all, of the Loans, the
          Revolving Loan Commitment and the other rights and obligations of such
          Lender hereunder, in a minimum amount of $10,000,000; provided,
          however, that the Company and the Agent may continue to deal solely
          and directly with such Lender in connection with the interest so
          assigned to an Assignee until (i) written notice of such assignment,
          together with payment instructions, addresses and related information
          with respect to the Assignee, shall have been given to the Company and
          the Agent by such Lender and the Assignee; (ii) such Lender and its
          Assignee shall have delivered to the Company and the Agent an
          Assignment and Acceptance in the form of Exhibit F (an "Assignment and
          Acceptance") together with any Note subject to such assignment and
          (iii) the assignor Lender or Assignee has paid to the Agent a
          processing fee in an amount specified by the Agent not exceeding
          $3,500 and has agreed to indemnify and hold the Company harmless from
          and against any and all costs, expenses and liabilities resulting from
          such assignment.

               (b) From and after the date that the Agent notifies the assignor
          Lender that it has received (and provided its consent with respect to)
          an executed Assignment and Acceptance and payment of the
          above-referenced processing fee, (i) the Assignee thereunder shall be
          a party hereto and, to the extent that rights and obligations
          hereunder have been assigned to it pursuant to such Assignment and
          Acceptance, shall have the rights and obligations of a Lender under
          the Loan Documents, and (ii) the assignor Lender shall, to the extent
          that rights and obligations hereunder and under the other Loan
          Documents have been assigned by it pursuant to such Assignment and
          Acceptance, relinquish its rights and be released from its obligations
          under the Loan Documents.

               (c) Within five Business Days after its receipt of notice by the
          Agent that it has received an executed Assignment and Acceptance and
          payment of the processing fee, (and provided that it consents to such
          assignment in accordance with subsection 9.5(a)), the Company shall
          execute and deliver to the Agent, a new Revolving Note evidencing such
          Assignee's assigned Revolving Loan Commitment, a new Term Note
          evidencing such Assignee's assigned Term Loan and, if the assignor
          Lender has retained a portion of its Loans and its Revolving Loan
          Commitment, a replacement Revolving Note in the principal amount of
          the Revolving Loan Commitment retained by the assignor Lender and a
          replacement Term Note in the principal amount of the Term Loan
          retained by the assignor Lender (such Notes to be in exchange for, but
          not in payment of, the Notes held by such Lender). Immediately upon
          each Assignee's making its processing fee payment under the Assignment
          and Acceptance, this

                                       44
<PAGE>

          Agreement shall be deemed to be amended to the extent, but only to the
          extent, necessary to reflect the addition of the Assignee and the
          resulting adjustment of the Revolving Loan Commitments arising
          therefrom. The Revolving Loan Commitment allocated to each Assignee
          shall reduce the Revolving Loan Commitment of the assigning Lender pro
          tanto.

               (d) Any Lender may, at its option, with the written consent of
          the Company (at all times other than during the existence of an Event
          of Default) sell to another financial institution or institutions
          participating interests in a Note payable to such Lender and, in
          connection with each such sale, and thereafter, disclose to the
          purchaser or prospective purchaser of each such interest financial and
          other information concerning the Company. The Company agrees that if
          amounts outstanding under this Agreement or a Note are due and unpaid,
          or shall have been declared or shall have become due and payable upon
          the occurrence of an Event of Default, each such purchaser shall be
          deemed to have, to the extent permitted by applicable law, the right
          of setoff in respect of its participating interest in amounts owing
          under this Agreement and such Note to the same extent as if the amount
          of its participating interest were owed directly to it. The Company
          further agrees that each such purchaser shall be entitled to the
          benefits of sections 2.14 and 2.15 with respect to its participation
          in the selling Lender's Revolving Loan Commitment; provided that no
          such purchaser shall be entitled to receive any greater amount
          pursuant to that section than the Lender would have been entitled to
          receive if no such sale had occurred.

         9.6   Titles. The titles of sections in this Agreement are for
     convenience only and do not limit or construe the meaning of any section.

         9.7   Parties Bound; Waiver. The provisions of this Agreement shall
     inure to the benefit of and be binding upon any successor of any of the
     parties hereto and shall extend and be available to any holder of a Note;
     provided that the Company's rights under this Agreement are not assignable.
     No delay on the part of the Agent or any Lender in exercising any right,
     power or privilege hereunder shall operate as a waiver thereof, and no
     single or partial exercise of any right, power or privilege hereunder shall
     preclude other or further exercise thereof or the exercise of any other
     right, power or privilege. The rights and remedies herein specified are
     cumulative and not exclusive of any rights or remedies which the Agent or a
     Lender would otherwise have.

         9.8   Governing Law. This Agreement is being delivered in and shall be
     deemed to be a contract governed by the laws of the State of Wisconsin and
     shall be interpreted and enforced in accordance with the laws of that state
     without regard to the principles of conflicts of laws.

                                       45
<PAGE>

         9.9   Submission to Jurisdiction; Service of Process. As a material
     inducement to the Agent and the Lenders to enter into this Agreement:

               (a) THE COMPANY AGREES THAT ALL ACTIONS OR PROCEEDINGS IN ANY
          MANNER RELATING TO OR ARISING OUT OF THIS AGREEMENT OR THE OTHER LOAN
          DOCUMENTS MAY BE BROUGHT ONLY IN COURTS OF THE STATE OF WISCONSIN
          LOCATED IN MILWAUKEE COUNTY OR THE FEDERAL COURT FOR THE EASTERN
          DISTRICT OF WISCONSIN AND THE COMPANY CONSENTS TO THE JURISDICTION OF
          SUCH COURTS. THE COMPANY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
          HAVE TO THE VENUE OF ANY SUCH COURT AND ANY RIGHT IT MAY HAVE NOW OR
          HEREAFTER HAVE TO CLAIM THAT ANY SUCH ACTION OR PROCEEDING IS IN AN
          INCONVENIENT COURT; and

               (b) The Company consents to the service of process in any such
          action or proceeding by certified mail sent to the address specified
          in section 9.4.

               Nothing contained herein shall affect the right of the Agent or
          the Lenders to serve process in any other manner permitted by law.

         9.10  Waiver of Jury Trial. THE COMPANY, THE AGENT AND THE LENDERS
     HEREBY KNOWINGLY AND VOLUNTARILY WAIVE THE RIGHT EACH OF THEM MAY HAVE TO A
     JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM BASED ON OR ARISING OUT OF
     OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, ANY COURSE
     OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR
     ANY OTHER ACTION OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT TO
     THE AGENT AND THE LENDERS TO ENTER INTO THIS AGREEMENT.

         9.11  Limitation of Liability. THE COMPANY, THE AGENT AND THE LENDERS
     HEREBY WAIVE ANY RIGHT ANY OF THEM MAY HAVE TO CLAIM OR RECOVER FROM ANY
     OTHER PARTY ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR
     ANY DAMAGES, OF WHATEVER NATURE, OTHER THAN ACTUAL DAMAGES.

         9.12  Amendments. No provision of this Agreement or the other Loan
     Documents may be amended, modified, supplemented, changed,

                                       46
<PAGE>

     waived, discharged or terminated unless the consent of the Majority Lenders
     and the Company is obtained in writing, provided, however, that no such
     amendment, modification or waiver which would:

               (a) Modify any requirement hereunder that any particular action
          be taken by all the Lenders or by the Majority Lenders shall be
          effective unless consented to by each Lender;

               (b) modify this section 9.12, change the definition of "Majority
          Lenders," increase any Revolving Loan Commitment or the Percentage of
          any Lender, or reduce any fees payable hereunder, shall be effective
          unless consented to by each Lender;

               (c) extend the scheduled due date for the payment of principal or
          interest on any Note (or reduce the principal amount of or rate of
          interest on any Note) shall be made without the consent of the holder
          of such Note;

               (d) release any collateral (except as permitted herein or in the
          applicable Loan Document) shall be effective unless consented to by
          each Lender; or

               (e) adversely affect the interests, rights, or obligations of the
          Agent shall be made without the consent of the Agent.

         9.13  Counterparts. This Agreement and any amendment hereof may be
     executed in several counterparts, each of which shall be executed by the
     Agent and the Company and be deemed to be an original and all of which
     together shall constitute one instrument. This Agreement shall become
     effective when counterparts hereof executed on behalf of the Company, the
     Agent and each Lender shall have been received by the Agent and notice
     thereof shall have been given by the Agent to the Company and each Lender.

         9.14  Effect on Original Credit Agreement. On the Effective Date this
     Credit Agreement will supersede and replace the Original Credit Agreement
     and the commitments of the Original Lenders will terminate. The only
     provisions of the Original Credit Agreement which will continue to be
     effective are those provisions which expressly state that they survive the
     repayment of the obligations of the Company under the Original Credit
     Agreement. All "Revolving Loans" under the Original Credit Agreement
     outstanding on the Effective Date shall be repaid in full, including
     accrued interest thereon. All commitment fees accrued under the Original
     Credit Agreement shall be due on the Effective Date.

                                       47
<PAGE>

         9.15  Entire Agreement. This Agreement and the other Loan Documents
     shall constitute the entire agreement of the parties pertaining to the
     subject matter hereof and supersedes all prior or contemporaneous
     agreements and understandings of the parties in connection therewith.

                                          LADISH CO., INC.

                                          BY
                                            ----------------------------------
                                            Its
                                               -------------------------------

Revolving
  Loan
Commitment           Percentage

$22,800,000              30%              FIRSTAR BANK, NATIONAL ASSOCIATION,
                                          as the Agent and a Lender

                                          BY
                                            ----------------------------------
                                            Its
                                               -------------------------------

                                          Address:  777 East Wisconsin Avenue
                                                    Milwaukee, WI 53202
                                                    Attn: Jeffrey J. Janza

                                          Facsimile No.:  414-765-4632

$15,200,000              20%              BANK ONE, N.A. (Main Office Chicago)

                                          BY
                                            ----------------------------------
                                            Its
                                               -------------------------------

                                          Address:  111 East Wisconsin Avenue
                                                    Milwaukee, Wisconsin 53202
                                                    Attn: Anthony F. Maggiore

                                          Facsimile No.:  414-765-2625

                                       48
<PAGE>

Revolving
  Loan
Commitment           Percentage

$15,200,000              20%              U.S. BANK NATIONAL ASSOCIATION

                                          BY
                                            ----------------------------------
                                            Its
                                               -------------------------------

                                          Address:  201 West Wisconsin Avenue
                                                    Milwaukee, WI 53259
                                                    Attn:  Dennis Ciche

                                          Facsimile No.:  414-227-5881

$15,200,000              20%              LASALLE BANK NATIONAL ASSOCIATION

                                          BY
                                            ----------------------------------
                                            Its
                                               -------------------------------

                                          Address:  411 East Wisconsin Avenue
                                                    Milwaukee, WI 53202
                                                    Attn:  James A. Meyer

                                          Facsimile No.:  414-224-0071

                                       49
<PAGE>

Revolving
  Loan
Commitment           Percentage

$ 7,600,000              10%              ST. FRANCIS  BANK, F.S.B.

                                          BY
                                            ----------------------------------
                                            Its
                                               -------------------------------

                                          Address:  13400 Bishops Lane
                                                    Suite 190
                                                    Brookfield, WI 53005
                                                    Attn:  John C. Tans

                                          Facsimile No.:  414-486-8778

-----------             ----
$76,000,000             100%
============================

                                       50
<PAGE>

                                  SCHEDULE 1.1

                      Existing Liens and Security Interests

None.

<PAGE>

                                  SCHEDULE 3.1

                                  Subsidiaries

1.  Stowe Machine Co., Inc., a Nevada corporation

2.  Pacific Cast Technologies, Inc., a Nevada corporation

<PAGE>

                                  SCHEDULE 3.4

                                   Litigation

None

<PAGE>

                                  SCHEDULE 3.18

                              Environmental Matters

Ladish Co., Inc. has been named as a potentially responsible party at the
following locations:

          Site                            Status

     1)   Hunts Superfund Site            Consent order signed, site
          Caledonia, WI                   remedied, monitoring continuing.

     2)   Fadrowski Superfund Site        Site remedied, owner has
          Franklin, WI                     monitoring responsibility.

     3)   ILCO Superfund Site             Ladish settled as a De Minimis
          Leeds, AL                        party and dismissed.

     4)   Marina Cliffs Superfund Site    Ladish settled as a De Minimis
          South Milwaukee, WI             party and dismissed.

Former subsidiary of Ladish Co., Inc. was named as a potentially responsible
party at the Operating Industries Inc. site in California. The subsidiary was
liquidated with no additional assets.

<PAGE>

                                  SCHEDULE 3.20

                              Year 2000 Compliance

Ladish Co., Inc.implemented a new information technology system and has found
the new system to be Year 2000 compliant.

<PAGE>

                                  SCHEDULE 6.3

                              Guaranty Obligations

Ladish Co., Inc. has guaranteed certain aspects of the performance and condition
of the assets of its former Industrial Products Division ("IPD") under the sale
of IPD to Trinity Fitting and Flange Company, Inc.PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is effective as of
December ___, 1999 by and among Wyman-Gordon Company, a Massachusetts
corporation with a principal address at 244 Worcester Street, North Grafton,
Massachusetts 01536 ("Seller"), and McLad Corporation, a Nevada corporation with
a principal address of c/o Ladish Co., Inc. ("Ladish"), Cudahy, Wisconsin 53110
(hereinafter referred to as "Buyer"). Ladish is a signatory to this agreement
for purposes of being jointly and severally liable for the performance by Buyer,
its wholly owned subsidiary, of all obigations of Buyer pursuant to this
Agreement.

                                    RECITALS

     WHEREAS, pursuant to the terms of an Asset Contribution Agreement (the
"Asset Contribution Agreement") and a Company Agreement (the "Company
Agreement") dated July 30, 1998 and effective as of August 1, 1998, Seller, its
wholly owned subsidiary Wyman-Gordon Investment Castings, Inc. ("WGIC"), and
Titanium Metals Corporation ("TIMET") formed Wyman-Gordon Titanium Castings, LLC
(the "Company"), a limited liability company organized under the laws of the
State of Delaware for the purpose of owning and operating two previously
existing titanium investment casting businesses: one located in Franklin, New
Hampshire (the "Franklin Business"), and another located in Albany, Oregon
(hereinafter defined as the "Albany Business");

     WHEREAS, Precision Castparts Corp., an Oregon corporation ("PCC") and W-G
Acquisition Corp., a Massachusetts corporation and a wholly-owned subsidiary of
PCC ("Acquisition Sub"), have entered into an Agreement and Plan of Merger dated
as of May 17, 1999 (the "Merger Agreement"), pursuant to which Acquisition Sub
has commenced a tender offer for all of the outstanding shares of common stock
of Seller (the "Tender Offer"); and

     WHEREAS, The United States Federal Trade Commission ("FTC") has required,
in connection with the Tender Offer and the other transactions contemplated by
the Merger Agreement, that Seller divest certain assets including the Albany
Business; and

     WHEREAS, the FTC, Seller and PCC have executed an Agreement Containing
Consent Orders (the "Agreement Containing Consent Orders") which, among other
things, requires that, upon completion of the Tender Offer, Seller and PCC hold
separate the Albany Business until the divestiture of the Albany Business is
completed; and

     WHEREAS, to facilitate the divestiture of the Albany Business, Seller and
TIMET have reached an agreement pursuant to which (i) the Franklin Business was
sold back to WGIC from the Company, (ii) a pro-rata distribution was made by the
Company to Seller, WGIC and TIMET of the purchase price for such sale, and (iii)
Seller, by the Closing (as defined herein) shall have acquired all right, title
and interest in the membership interest of TIMET in the Company; and

     WHEREAS, to further facilitate the divestiture of the Albany Business, the
entire right, title and interest in the membership interest of WGIC in the
Company, by the Closing, shall have been distributed as a dividend to Seller,
the parent of WGIC; and

<PAGE>

     WHEREAS, Seller, by the Closing, will own the entire membership interest in
the Company (hereinafter referred to as the "Membership Interest"); and

     WHEREAS, Seller wishes to sell to Buyer, and Buyer wishes to purchase from
Seller the entire Membership Interest of the Company;

     NOW, THEREFORE, in consideration of the respective representations,
warranties, covenants, and agreements contained in this Agreement, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Buyer and Seller mutually agree as follows:

                                   DEFINITIONS

     As used in this Agreement, the following terms shall have the meaning set
forth below:

     "Affiliate" -- An Affiliate of any person or entity shall mean any
individual, corporation, partnership, limited liability company or other entity
controlled by, controlling, or under common control with such person.

     "Albany Business" -- The Albany Business shall mean the entire business and
assets owned, leased and operated by the Company in connection with the titanium
investment castings operation conducted by the Company in Albany, Oregon. For
purposes of those representations and warranties of Seller set forth in Article
2 which refer to the Albany Business, the term Albany Business shall be deemed
to include the Company in connection with its ownership and operation of the
Albany Business.

     "Code" -- The Code shall mean the Internal Revenue Code of 1986, as
amended.

     "ERISA"---ERISA shall mean the Employee Retirement Income Security Act of
1974, as amended.

     "Know" or "Knowledge" --- The terms "know" or "knowledge," or any variation
thereof, with respect to any person shall include any actual knowledge by such
entity or person or such entity or person's officers, directors and/or
management committee members and shall encompass matters which the person or
entity or the person's or entity's officers, directors and/or management
committee members should have known after reasonable inquiry.

     "Real Estate"-- Real Estate shall refer collectively to all real property
and the buildings thereon owned and/or leased by the Company as more
particularly identified in Schedule 2.3 hereof.

     Capitalized terms defined herein shall have such definitions for all
purposes hereunder.

     1.  Purchase and Sale of Membership Interest

         1.1   Transfer of Membership Interest. Subject to and upon the terms
     and conditions set forth herein and in reliance upon the covenants,
     representations, and warranties herein contained, at the Closing (as
     defined in ss. 1.6 hereof), Seller shall sell, transfer, assign and

                                       2
<PAGE>

     deliver to Buyer all of the Membership Interest of the Company. The
     foregoing transfer shall be evidenced by execution of the form of
     Assignment of Membership Interest attached hereto as Exhibit 1.5(a).

         1.2   Consideration for Such Transfers. The aggregate consideration
     paid by Buyer for the transfer in Section 1.1 above (the "Purchase Price")
     shall be Twenty-Six Million Six Hundred Thousand Dollars ($26,600,000.00)
     subject to adjustment as provided in Section 1.3 below.

         1.3   Adjustment to Purchase Price for Balance Sheet Changes.

               (a) Closing Balance Sheet. Within 60 days following the Closing
          Date (as set forth in Section 1.6) the Buyer shall prepare and deliver
          to the Seller a balance sheet for the Albany Business as of the close
          of business on the Closing Date (the "Preliminary Closing Balance
          Sheet"). The Preliminary Closing Balance Sheet and the final balance
          sheet determined in accordance with paragraphs (b), (c), (d) and (e)
          of this Section 1.3 (the "Final Closing Balance Sheet") shall be
          prepared in accordance with principles, practices and procedures that
          are the same as those which resulted in the asset and liability values
          reflected in the balance sheet effective as of October 2, 1999 (the
          "Peg Date"), which is attached hereto as Schedule 1.3 (the "Peg
          Balance Sheet"). The Preliminary Closing Balance Sheet and the Final
          Closing Balance Sheet are sometimes collectively referred to herein as
          the Preliminary and Final Closing Balance Sheets. Notwithstanding the
          foregoing, the following specific provisions shall take precedence
          over such principles, practices and procedures in the preparation of
          the Preliminary and Final Closing Balance Sheets:

                   (i)   The amounts included in the Preliminary and Final
               Closing Balance Sheets for fixed assets (i.e., net plant,
               property and equipment) will be the same as those included in the
               Peg Balance Sheet except as necessary to reflect those changes in
               the net asset values that result from new transactions and actual
               changes in facts and circumstances occurring during the period
               after (but not including) the Peg Date through and including the
               Closing Date (the "Change Period"). (To illustrate, if an item of
               machinery and equipment was included in the Peg Balance Sheet at
               a net book value of $1 million, but had not been used for the
               past several years, or would no longer function, or would require
               major repairs to put it in working condition, this item would be
               valued at $1 million in the Preliminary and Final Closing Balance
               Sheets because no changes in circumstances occurred during the
               Change Period which would warrant a reduction in the book value
               of that asset as of the Closing Date that would not have been
               equally appropriate as of the Peg Date. However, if a change in
               facts or circumstances occurred during the Change Period which
               would have warranted a change in the book value of such item of
               machinery and equipment that would not have been equally
               appropriate as of the Peg Date, then the book value of such item
               would be changed on the Preliminary and Final Closing Balance
               Sheets.

                   (ii)  The quantities of inventory used to determine the
               inventory amount to be included in the Preliminary and Final
               Closing Balance Sheets will be based on the results of a physical
               inventory to be taken as of the opening of business on the
               Closing Date in accordance with procedures to be mutually agreed
               to by the parties. The physical inventory quantities will be
               priced utilizing the same valuation methodologies which were used
               in the determination of

                                       3
<PAGE>

               the inventory amount reflected in the Peg Balance Sheet and in
               the case of items which were not on hand as of the Peg Date in
               accordance with the normal procedures of the Albany Business.

               (b) Seller's Review of Preliminary Closing Balance Sheet. Seller
          shall have 30 days following receipt of the Preliminary Closing
          Balance Sheet to review (the "Seller's Review") such balance sheet. If
          Seller determines, in Seller's reasonable judgment, that it has not
          been prepared in accordance with the provisions of paragraph (a), then
          within the said 30-day period allowed for Seller's Review, Seller
          shall prepare and deliver a letter to Buyer (the "Seller's Letter")
          setting forth in reasonable detail the adjustments that Seller
          determines are appropriate. During the said 30-day period, Buyer shall
          grant Seller reasonable access during normal business hours to the
          books and records of the Albany Business and its working papers
          pertaining to the Preliminary Closing Balance Sheet and shall
          authorize the Albany Business's auditors to grant Seller's auditors
          access to any working papers or other documents prepared by such
          auditors with respect to the Preliminary Closing Balance Sheet. If
          Seller does not prepare and furnish Seller's Letter to Buyer within
          the said 30-day period, then the Preliminary Closing Balance Sheet as
          prepared by Buyer will become the Final Closing Balance Sheet.

               (c) Buyer Response to Seller's Letter. Buyer will have 30 days
          following receipt of Seller's Letter, if any, to review such letter
          and prepare a written response (the "Buyer's Letter") setting forth
          Buyer's position with respect to each adjustment proposed by Seller in
          Seller's Letter. If Buyer does not prepare and furnish Buyer's Letter
          to Seller within the 30 days allowed, then all of the adjustments set
          forth in Seller's Letter shall be deemed to have been accepted by
          Buyer, and the Final Closing Balance Sheet shall be prepared by
          adjusting the Preliminary Closing Balance Sheet for all of the
          adjustments set forth in Seller's Letter.

               (d) Meeting to Resolve Proposed Adjustments. As soon as
          practicable, but not later than ten days following the receipt by
          Seller of Buyer's Letter, if any, the parties shall meet and endeavor
          to mutually resolve any of Seller's adjustments not agreed to in
          Buyer's Letter. If the parties reach agreement on the remaining
          adjustments, if any, then the Final Closing Balance Sheet shall be
          prepared by adjusting the Preliminary Closing Balance Sheet for the
          adjustments agreed to in Buyer's Letter and those resolved by the
          parties.

               (e) Resolution by Accounting Arbitrator. If the parties do not
          meet within the said ten-day period, or they fail to agree to meet at
          some later date, or they meet but are unable to resolve all of the
          adjustments set forth in Seller's Letter to the mutual satisfaction of
          both parties, then the parties, jointly, or if one party is unwilling
          then the other party singly, shall engage the Portland, Oregon office
          of a nationally recognized accounting firm not regularly retained by
          either party or Affiliate of either party (the "Accounting
          Arbitrator") to resolve any of Seller's adjustments which remain
          unresolved. The Accounting Arbitrator shall be furnished with a copy
          of the Agreement, the Peg Balance Sheet, the Preliminary Closing
          Balance Sheet, Seller's Letter, Buyer's Letter and any other relevant
          correspondence between the parties. The Accounting Arbitrator must,
          within 30 days from the date such documents are furnished, complete
          its review and render a written report setting forth its conclusion
          with respect to each of Seller's adjustments which were unresolved
          between the parties. The Accounting Arbitrator shall be granted access
          to the books and records of the Albany Business as well as the working

                                       4
<PAGE>

          papers or other documents which either party or its accountants may
          have which relate to the Preliminary Closing Balance Sheet and any
          other documents or information which the Accounting Arbitrator may
          deem appropriate. The parties shall have the right to submit written
          materials to the Accounting Arbitrator and make oral presentations all
          in accordance with procedures to be set forth in the engagement letter
          between the parties and the Accounting Arbitrator. The decision by the
          Accounting Arbitrator shall be in writing and delivered to both Buyer
          and Seller. The Accounting Arbitrator's decision shall be conclusive
          and binding upon the parties and may be entered and enforced in any
          court of competent jurisdiction. The parties agree to submit to the
          jurisdiction of any such court for the enforcement of such award or
          decision. Seller and Buyer shall each pay 50% of the fees and expenses
          of the Accounting Arbitrator. If the Accounting Arbitrator is engaged,
          the Final Closing Balance Sheet will be prepared by adjusting the
          Preliminary Closing Balance Sheet for any of Seller's adjustments
          accepted by Buyer's Letter, those agreed to by the parties and those
          determined by the Accounting Arbitrator.

               (f) Positive or Negative Purchase Price Adjustment. When the
          Final Closing Balance Sheet is determined pursuant to the provisions
          of paragraphs (b), (c), (d) and (e), then the net asset/equity value
          set forth on such Final Closing Balance Sheet will be the Final Net
          Asset Value and the Final Net Asset Value so determined shall be
          compared to the net asset/equity amount set forth on the Peg Balance
          Sheet (the "Peg Value"). If the Peg Value is more than the Final Net
          Asset Value, the Seller shall pay to Buyer an amount equal to the
          difference. Payment of such amount shall be made in cash within three
          days of determination of the Final Closing Balance Sheet by wire
          transfer to the Buyer's account. If the Final Net Asset Value is more
          than the Peg Value, the Buyer shall pay to Seller an amount equal to
          the difference in cash by wire transfer to the account of Seller
          within three days of determination of the Final Closing Balance Sheet.

         1.4   Payment. The Purchase Price shall be paid to Seller at the
     Closing, by wire transfer of the Purchase Price in immediately available
     funds to Seller's accounts as directed by Seller at the Closing.

         1.5   Delivery of Documents. On the Closing Date, Seller shall deliver
     to Buyer, effective as of the Closing Date, the following documents:

               (a) fully executed assignments of Membership Interest conveying
          to Buyer all right, title and interest in and to the entire Membership
          Interest;

               (b) the originals, as amended, of the Certificate of Formation,
          Company Agreement, minute book, membership interest ledger, company
          seal, and all other books and records of the Company, and to the
          extent in the possession of the Seller or the Company, books and
          records relating to the conduct of the Albany Business prior to the
          formation of the Company;

               (c) certificate from the Secretary of State of Delaware and each
          other state in which the Company is qualified to do business as a
          foreign entity indicating that the Company is in good standing under
          the laws of each such state; and

               (d) the resignations of all management committee members and
          officers of the Company effective as of the Closing.

                                       5
<PAGE>

         1.6   Closing. The consummation of the purchase and sale of the
     Membership Interest being transferred herein (the "Closing") shall take
     place at a place to be mutually agreed upon by Buyer and Seller on December
     20, 1999 commencing at 10:00 a.m., or at such other time as may be mutually
     agreed upon in writing by the Buyer and the Seller (the "Closing Date").

     2.  Representations and Warranties of Seller.

         Seller represents and warrants to Buyer as set forth in this Article 2.

         2.1   Company Status. The Company is a limited liability company duly
     organized, validly existing, and in good standing under the laws of the
     State of Delaware. It has full power and authority to own or lease its
     property and assets and to carry on its business as it has been, and is,
     conducted. Schedule 2.1 sets forth those jurisdictions in which the Company
     is qualified to do business as a foreign entity. True, accurate, and
     complete copies of the Articles of Organization, Company Agreement,
     minutes, and membership interest books of the Company, as amended to date,
     have been delivered to Buyer prior to or on the date this Agreement is
     executed, and there have been no transactions involving the business of the
     Company which, according to accepted legal practice, should have been set
     forth in such books other than those in fact set forth therein. The minute
     books of the Company contain complete and accurate records of all material
     actions of the members and management committee of the Company. A true,
     accurate, and complete list of names and addresses of all management
     committee members and officers of the Company has been delivered to Buyer
     prior to the date this Agreement is executed.

         2.2   Ownership of Membership Interest.. At the Closing, Seller shall
     own the entire Membership Interest free and clear of liens and encumbrances
     of any nature or kind. No portion of the Membership Interest will be
     subject to preemptive rights, options or other agreements of any kind. The
     Company has not issued or sold, nor is there outstanding any other
     membership interest, stock, bond, warrants, options, convertible
     debentures, or other securities of the Company of any nature whatsoever
     except those interests held by Wyman-Gordon Investment Castings, Inc. and
     TIMET Castings Corporation which interests shall have been acquired by
     Seller by the Closing. Neither the Company nor Seller has any commitment,
     either firm or conditional, to sell, issue, purchase or repurchase any
     membership interest, stock or other securities or any rights with respect
     thereto of the Company except with respect to the right of Seller to
     acquire the Membership Interest of TIMET Castings Corporation. In addition,
     except as set forth in Schedule 2.2, the Company has not declared or made,
     or agreed to declare or make, any payment or distribution to members or to
     purchase, redeem, or acquire, directly or indirectly, any portion of any
     member's portion of the Membership Interest.

         2.3   Real Property. Attached hereto as Schedule 2.3 is an accurate and
     complete list of all Real Estate owned and leased by the Company. With
     respect to Real Estate owned by the Company, the Company has good and
     marketable title to all such property free and clear of any liens,
     encumbrances, claims, or charges (except for taxes in the ordinary course
     not yet due or payable). With respect to Real Estate leased by the Company,
     the Company is not in default under any such lease nor does the Seller or
     the Company have knowledge of any condition which has a material adverse
     effect on the Company's occupancy and use of any such leased Real Estate
     pursuant to the terms of any such lease. The Company does not have any

                                       6
<PAGE>

     contractual obligations to purchase or acquire any other interest in real
     property. There are not any condemnation, zoning or other land-use
     proceedings, either instituted or, to the best of Seller's or Company's
     knowledge, planned, which affect the Real Estate nor has Seller or the
     Company received any notice of any special assessment proceedings which
     affect the Real Estate. There are now in full force and effect duly issued
     certificates of occupancy permitting the Real Estate and improvements
     located thereon to be legally used and occupied as the same are now
     constituted. All of the Real Estate has permanent rights of access to
     dedicated public highways. No fact or condition exists which would prohibit
     or adversely affect the ordinary rights of access to and from the Real
     Estate from and to the existing highways and roads and there is no pending
     or, to the Knowledge of the Seller and Company, threatened restriction or
     denial, governmental or otherwise, upon such ingress and egress. There is
     not, to the Knowledge of the Seller and Company, (i) any claim of adverse
     possession or prescriptive rights involving any of the Real Estate, (ii)
     any structure located on any Real Estate which encroaches on or over the
     boundaries of neighboring or adjacent properties or (iii) any structure of
     any other party which encroaches on or over the boundaries of any such Real
     Estate. No public improvements have been commenced and, to the Company's
     and Seller's Knowledge, none are planned which in either case may result in
     special assessments against or otherwise materially adversely affect any
     Real Estate. Neither Company nor Seller has notice or Knowledge of any (i)
     planned or proposed increase in assessed valuations (other than annual
     valuations performed under Oregon law) of any Real Estate, (ii) order
     requiring repair, alteration, or correction of any existing condition
     affecting any Real Estate or the systems or improvements thereat (except as
     set forth in Schedule 2.30), (iii) condition or defect which could give
     rise to an order of the sort referred to in "(ii)" above or (iv) any
     structural, mechanical, or other defects of material significance affecting
     any Real Estate or the systems or improvements thereat (including, but not
     limited to, inadequacy for normal use of mechanical systems or disposal or
     water systems at or serving the Real Estate) except as otherwise set forth
     in Schedule 2.3.

         2.4   Authorization. Seller has full power and authority and is duly
     authorized to enter into this Agreement and to consummate the transactions
     contemplated under this Agreement; and this Agreement, when executed,
     constitutes the legal, valid, and binding obligation of each Seller,
     enforceable against Seller in accordance with the terms and conditions set
     forth in this Agreement subject to any applicable bankruptcy, insolvency,
     or other laws affecting creditors' rights generally.

         2.5   Subsidiaries. The Company does not have any subsidiaries, nor
     does it directly or indirectly own or have any investment in any capital
     stock or any other proprietary interest in any other entity.

         2.6   Financial Statements. Seller has delivered to Buyer copies of
     income and cash flow statements of the Albany Business for the twelve month
     periods ending on May 31, 1997, May 31, 1998 and May 31, 1999, respectively
     as well as the balance sheet of the Albany Business as of May 31, 1996, May
     31, 1997, May 31, 1998 and May 31, 1999 (collectively, the "Financial
     Statements"). Copies of the Financial Statements are attached as Schedule
     2.6. To the extent that the Financial Statements reflect the conduct and
     condition of the Albany Business on and after August 1, 1998 (the date on
     which the Company began operating the Albany Business), the Financial
     Statements, except as set forth in Schedule 2.6, have been prepared in
     accordance with Generally Accepted Accounting Principles ("GAAP"), are
     true,

                                       7
<PAGE>

     correct and complete in all material respects and fairly reflect the
     financial position and results of operations of the Albany Business as of
     the date and for the respective periods indicated. To the extent that the
     Financial Statements reflect the conduct and condition of the Albany
     Business prior to August 1, 1998, such Financial Statements, to the
     knowledge of Seller and the Company based on representations made by TIMET
     in the Asset Contribution Agreement, fairly reflect the financial position
     and results of operations of the Albany Business as of the date and for the
     respective periods indicated. The individual line items reflected on the
     Peg Balance Sheet have been prepared in accordance with principles,
     practices and procedures consistent with those employed in preparing the
     Financial Statements.

         2.7   No Material Adverse Change. Since May 31, 1999,

               (a) except as set forth in Schedule 2.7(a), there have been no
          changes in the assets, properties, business, operations or condition
          (financial or otherwise) of the Albany Business which either
          individually or in the aggregate materially and adversely affect the
          Albany Business, nor does the Seller have reason to know of any change
          that is threatened, nor has there been any damage, destruction or loss
          materially and adversely affecting the assets, properties, business,
          operations or condition (financial or otherwise) of the Albany
          Business, whether or not covered by insurance; and

               (b) except as set forth in Schedule 2.7(b), the Albany Business
          has not:

                   (i)   incurred any indebtedness for borrowed money;

                   (ii)  declared or paid any distribution of any kind to its
               members or made any direct or indirect redemption, retirement,
               purchase or other acquisition of any portion of the Membership
               Interest;

                   (iii) made any loan or advance to any of its members,
               officers, managers, employees, consultants, agents or other
               representatives (other than travel advances made in the ordinary
               course of business), or made any other loan or advance otherwise
               than in the ordinary course of business;

                   (iv)  made any payment or commitment to pay any severance or
               termination pay to any of its officers, managers, employees,
               consultants, agents or other representatives, other than payments
               to, or commitments to pay, persons made in the ordinary course of
               business;

                   (v)   except in the ordinary course of business, sold,
               abandoned or made any other disposition of any of its assets or
               properties, acquired inventory or equipment, granted or suffered
               any lien or other encumbrance on any of its assets or properties;
               entered into or amended any contract or other agreement to which
               it is a party, or by or to which it or its assets or properties
               are bound or subject, or pursuant to which it agrees to indemnify
               any party or to refrain from competing with any party;

                   (vi)  except for inventory or equipment acquired in the
               ordinary course of business, made any acquisition of all or any
               part of the assets, properties, capital stock or business of any
               other person;

                                       8
<PAGE>

                   (vii) incurred any contingent liability as a guarantor or
               otherwise with respect to the obligations of others or canceled
               any material debt or claim owing to, or waived any material right
               of, the Albany Business;

                   (viii) made any change in accounting methods or practices,
               credit practices or collection policies used by the Albany
               Business; or

                   (ix)  made any commitment to make any future payments for
               capital equipment or repairs;

                   (x)   entered into any lease (whether as lessor or lessee);

                   (xi)  made any increases in salaries, wages or benefits; and

               (c) the Company has conducted the Albany Business only in the
          ordinary course and consistently with its prior practices.

         2.8   Accounts Receivable. Except as set forth in Schedule 2.8, each
     account and note receivable (as encompassed within the Financial
     Statements) represents a sale in the ordinary course of the Albany
     Business's business and neither Seller nor the Company has any knowledge of
     any disputes concerning the goods and services subject to such sales, the
     price or terms relative to such sale, or of any pending insolvency or
     setoffs or other proceedings involving the purchasers of such goods and
     services. Except as set forth in Schedule 2.8, the Albany Business has no
     accounts or notes receivable from any Affiliate of the Company or from any
     member, manager, officer or employee of the Albany Business.

         2.9   Inventory. Except as set forth in Schedule 2.9, (i) the inventory
     of the Albany Business (including that reflected on the Financial
     Statements and any inventory thereafter acquired by the Albany Business) is
     and will be in good and merchantable condition and suitable and saleable or
     usable in the manufacture of saleable finished goods in the ordinary course
     of business and (ii) the values of the inventories stated in the Financial
     Statements reflect the lower of cost or market in accordance with GAAP.
     Purchase commitments for raw materials and parts are not in excess of
     normal requirements. Since May 31, 1999, the Albany Business has not sold
     any inventory items nor entered into any commitment for the sale of any
     inventory items except for sales or commitments made in the ordinary course
     of business.

         2.10  Assets. The Company has no assets other than those of the Albany
     Business. Attached to this Agreement as Schedule 2.10 is a listing of all
     the material fixed assets of the Albany Business as of the date set forth
     therein. None of the fixed assets of the Albany Business is held or will be
     held as of the Closing Date by the Albany Business as lessee under any
     lease or as a conditional sale vendee under a conditional sales contract or
     other title retention agreement, except as otherwise provided in Schedule
     2.10. None of the fixed assets of the Albany Business are subject to any
     valid option or other right of any third party to acquire any interest in
     any such assets. The Albany Business does not have any material assets that
     are not fully reflected in the Financial Statements or the Schedules to
     this Agreement, except those assets acquired since the date of the
     Financial Statements in the ordinary course of

                                       9
<PAGE>

     business, and which in the aggregate have no material adverse effect on the
     financial condition or the conduct of the Albany Business.

         2.11  Undisclosed Liabilities. The Company has no liabilities other
     than those of the Albany Business. The Albany Business has no liabilities
     or obligations (accrued, absolute or contingent), other than those set
     forth on the Financial Statements, except as are listed in attached
     Schedule 2.11 and except as would not have a material adverse effect on the
     results of operations and conduct of business of the Albany Business. The
     Albany Business has no liability or obligation (absolute or contingent) to
     provide funds to or on behalf of, or to guarantee or assume any debt,
     liability, or obligation of, any corporation, partnership, association,
     limited liability company, joint venture, individual, or other person,
     except as otherwise provided in Schedule 2.11.

         2.12  Litigation.  Except as set forth in Schedule 2.12.

               (a) There are no proceedings, actions or claims pending or
          threatened which would limit, impair, or adversely affect any of the
          transactions completed by this Agreement or any of the Albany
          Business' powers, rights, or privileges, which would materially limit
          or impair the value of the Albany Business' assets or property or
          which would result in a dissolution of the Company, including, without
          limitation, any proceedings under bankruptcy or insolvency statutes;

               (b) There are no judgments, decrees, injunctions, or court or
          administrative orders outstanding against the Company.

               (c) There are no suits, proceedings, or counterclaims (including,
          except as set forth in Schedule 2.30, any administrative charges or
          complaints) in law or in equity pending against the Company, its
          properties, or businesses.

               (d) There are no actions or proceedings pending in which the
          Company is the plaintiff or petitioner.

         2.13  Personal Property. Except as set forth in Schedule 2.13, the
     Company has good and marketable title to all personal property, including,
     without limitation, all personal property reflected on the Financial
     Statements and in Schedule 2.10 and all personal property acquired by the
     Albany Business since the date of the Financial Statements (except such
     personal property as has been disposed of in the ordinary course of
     business), free and clear of any lien, encumbrance, claim, or charge
     whatsoever. All machinery, tools, equipment, and other tangible personal
     property owned or leased by the Company which are used, usable by, or
     useful to the Albany Business in the ordinary course of business are in
     good operating condition, reasonable wear and tear excepted, and in a state
     of reasonable maintenance and repair.

         2.14  Contracts. Attached hereto as Schedule 2.14 is a true and
     complete list of the following written contracts, agreements, or
     commitments to which the Albany Business is party or by which the assets of
     the Albany Business may be bound:

               (a) contracts and other agreements with any current or former
          officer, manager, member, employee, consultant, agent or other
          representative of the Albany Business and

                                       10
<PAGE>

          contracts and other agreements for the payment of fees or other
          consideration to any entity in which any officer, manager or member of
          the Albany Business has an interest;

               (b) contracts and other agreements with any labor union or
          association representing any employee of the Albany Business or
          otherwise providing for any form of collective bargaining;

               (c) contracts and other agreements for the purchase and sale of
          materials, supplies, equipment, merchandise or services that contain
          an escalation, renegotiation or redetermination clause or that
          obligate the Albany Business to purchase all or substantially all of
          its requirements of a particular product or material from a supplier,
          or for periodic minimum purchases of a particular product or material
          from a supplier;

               (d) contracts and other agreements for the sale of any of the
          assets or properties of the Albany Business other than in the ordinary
          course of business or for the grant to any person of any options,
          rights, or preferential or similar rights to purchase any such assets
          or properties;

               (e) partnership or joint venture agreements;

               (f) contracts or other agreements under which the Albany Business
          agrees to indemnify any party or to share the tax liability of any
          party;

               (g) contracts, options and other agreements for the purchase of
          any asset, tangible or intangible calling for an aggregate purchase
          price or payments in any one year of more than $100,000 in any one
          case (or in the aggregate, in the case of any related series of
          contracts and other agreements);

               (h) contracts and other agreements that cannot by their terms be
          canceled by the Albany Business and any successor or assignee of the
          Albany Business without liability, premium or penalty on no more than
          thirty days notice;

               (i) contracts and other agreements with customers or suppliers
          for the sharing of fees, the rebating of charges or other similar
          arrangements;

               (j) contracts and other agreements containing covenants of the
          Albany Business not to compete in any line of business or with any
          person or covenants of any other person not to compete with the Albany
          Business in any line of business;

               (k) contracts and other agreements relating to acquisition by the
          Albany Business of any operating business or an ownership interest in
          any other entity;

               (l) contracts and other agreements requiring the payment to any
          person of a commission or fee, including contracts or other agreements
          with consultants which provide for aggregate payments in excess of
          $50,000;

               (m) contracts, indentures, mortgages, promissory notes, loan
          agreements, guaranties, security agreements, pledge agreements, and
          other agreements relating to the borrowing of money or securing of any
          such liability;

                                       11
<PAGE>

               (n) distributorship or licensing agreements;

               (o) contracts under which the Albany Business will acquire or has
          acquired ownership of, or license to, intangible property (including
          software other than software licensed by the Albany Business as end
          user for less than $50,000);

               (p) leases, subleases or other agreements relating to real or
          personal property to which the Albany Business is a party; and

               (q) any other material contract or other agreement whether or not
          made in the ordinary course of business that has or may have a
          material adverse effect on the business or prospects, condition,
          financial or otherwise, of the Albany Business or any of its assets or
          properties.

          Seller has caused to be delivered or made available to Buyer true and
          complete copies of all such contracts, agreements and commitments (and
          all amendments, waivers or other modifications thereto). All such
          contracts, agreements, and commitments are valid, in full force and
          effect, and binding and enforceable on all parties thereto in
          accordance with their respective terms. To the knowledge of the Seller
          and the Company, no occurrence or circumstance exists which
          constitutes a breach or default, by the Company or any other party, or
          which by lapse of time and/or giving of notice would constitute a
          breach or default by the Company under any such contract, agreement,
          or commitment.

         2.15  Finders or Brokers. Except as set forth in Schedule 2.15, the
     Seller has not employed any agent, investment banker, financial advisors,
     broker, finder or intermediary in connection with the transactions
     contemplated hereby who might be entitled to a fee or commission in
     connection with this Agreement and the transactions contemplated hereby.

         2.16  Customers. Schedule 2.16 sets forth the five customers who
     accounted for the largest sales of the Albany Business for each of the last
     two fiscal years (the "Customers"). The relationships of the Albany
     Business with its Customers are generally good commercial working
     relationships. The Seller and the Company have no knowledge of any plan,
     intention or threat of any such Customer to terminate, cancel or otherwise
     materially and adversely modify its relationship with the Albany Business.

         2.17  Suppliers. Schedule 2.17 sets forth the five suppliers who
     accounted for the largest purchases of raw materials and products used by
     the Albany Business for each of the last two fiscal years (the
     "Suppliers"). The relationships of the Albany Business with its Suppliers
     are generally good commercial working relationships. The Seller and the
     Albany Business have no knowledge of any plan, intention or threat of any
     such Supplier to terminate, cancel or otherwise materially and adversely
     modify its relationship with the Albany Business.

         2.18  Intellectual Property. For purposes of this Section 2.18, the
     term "Intellectual Property" shall mean (i) all patents, patent rights,
     patent applications, trademarks, trademark applications, service marks,
     service mark applications, trade names, and copyrights licensed to, used
     by, owned by, claimed by, or registered in the name of the Albany Business,
     or in which the Albany Business has any rights; and (ii) all research data,
     market reports, distribution methods,

                                       12
<PAGE>

     customer lists, trade secrets, and other proprietary and intellectual
     property rights that the Albany Business claims or uses and that are not
     within the general knowledge of the industry; and (iii) all computer
     software licensed to, used by, owned by, or claimed by the Albany Business.

         Except as set forth in Schedule 2.18, the Albany Business owns (or
     possesses adequate licenses or other rights to), and has the right to own,
     use, sell, license, or dispose of all Intellectual Property, and, to the
     knowledge of Seller and the Company, its use, ownership, sales, and
     licensing of the Intellectual Property does not infringe on any other
     person's rights. To the knowledge of the Seller and the Company, no person
     is infringing upon the Albany Business's rights in and to the Intellectual
     Property. Rights of the Albany Business with regard to Intellectual
     Property include all rights necessary, required, or desirable for the
     conduct of the operations of the Albany Business as presently conducted. No
     claim is pending or, to the knowledge of the Seller and the Company,
     threatened to the effect that (i) the present or past usage of the
     Intellectual Property by the Albany Business or the operations of the
     Albany Business infringe upon or conflict with the asserted rights of any
     other person in respect of any Intellectual Property, or (ii) any
     Intellectual Property is invalid or unenforceable. No contract, agreement,
     or understanding with any party exists that would impede or prevent the
     continued existence of the entire right, title, and interest of the Albany
     Business in and to any Intellectual Property upon consummation of the
     transactions contemplated herein.

         Set forth in Schedule 2.18 is a list or brief description of each
     patent, patent right, patent application, trademark, trademark application,
     service mark, service mark application, trade name and copyright licensed
     to, used by, owned by, claimed by, or registered in the name of the Albany
     Business.

         Set forth in Schedule 2.18 is a list or brief description of each
     license granted by the Albany Business, or a joint venture including the
     Albany Business, to any person, corporation, partnership or unincorporated
     entity, or otherwise, for the use of any of the Intellectual Property and a
     notation of the contract or agreement pursuant to which each such license
     has been granted.

         2.19  Non-ERISA Employment Agreements and Plans. Set forth on Schedule
     2.19 is a complete list of each current employment contract entered into by
     the Albany Business, or by which the Albany Business is bound, and each
     deferred compensation, bonus, profit sharing, equity appreciation,
     incentive compensation, savings, change in control compensation, severance
     or termination pay agreement or plan, and any other employee benefit plan,
     agreement, arrangement, or commitment, whether formal or informal, not
     required to be listed on Schedule 2.20, maintained, entered into or
     contributed to by the Albany Business for the benefit of, or under which
     the Albany Business is liable for any amount or benefit to, any current or
     former manager, officer, employee, or independent contractor of the Albany
     Business or any predecessor entity to the Albany Business or of any joint
     venture to which the Albany Business is a party (the "Non-ERISA Plans").
     The Seller has caused to be delivered to Buyer true and correct copies of
     all plan documents, policy statements, or other available descriptions of
     each Non-ERISA Plan listed on Schedule 2.20. Non Non-ERISA Plan provides
     for any post-retirement benefit.

                                       13
<PAGE>

         2.20  Benefit Plans

               (a) Schedule 2.20 hereto sets forth a list of every Benefit Plan
          (as hereinafter defined) that is maintained by the Company or by an
          ERISA Affiliate (as hereinafter defined) with respect to the Albany
          Business. With respect to any Benefit Plan, there has been no failure
          to comply with any applicable provision of ERISA, the Code, and other
          federal or state law, or any agreement, which, in either case, would
          subject the Company or any ERISA Affiliate to liability (including,
          without limitation, through any obligation of indemnification or
          contribution) for any damages, penalties, or taxes, or any other loss
          or expense which has or reasonably could be expected to have a
          material adverse effect. No litigation or governmental administrative
          proceeding or investigation or other proceeding is pending or, to
          Seller's knowledge, threatened with respect to any such Benefit Plan.

               For purposes of this Section:

                   (1)   "Benefit Plan" means (A) all employee benefit plans
               within the meaning of ERISA Section 3(3) maintained by the
               Company, Seller or any ERISA Affiliate and (B) all stock option
               plans and stock purchase plans, in each case in which any Albany
               Business employee is eligible to participate.

                   (2)   An entity "maintains" a Benefit Plan if such entity
               sponsors, contributes to, or provides benefits under or through
               such Benefit Plan, or has any obligation (by agreement or under
               applicable law) to contribute to or provide benefits under or
               through such Benefit Plan, or if such Benefit Plan provides
               benefits to or otherwise covers employees of such entity (or
               their spouses, dependents or beneficiaries).

                   (3)   An entity is an "ERISA Affiliate" of the Company for
               purposes of this Section if the entity is any corporation, trade
               or business that is along with the Company, a member of a
               controlled group of corporations or a controlled group of trades
               or businesses, as described in Code ss.414(b) or 414(k),
               respectively, or ERISA ss.4001(b).

               (b) Neither the Company nor any ERISA Affiliate has incurred, nor
          does either reasonably expect to incur any liability under ERISA
          ss.4062 that could subject the assets of the Albany Business to a lien
          pursuant to ERISA ss.4068.

               (c) Each Benefit Plan that is intended to be qualified under
          Section 401(a) of the Code has received a determination letter from
          the Internal Revenue Service (the "IRS") that such Benefit Plan is so
          qualified, and to the knowledge of Seller, nothing has occurred since
          the date of such determination that could adversely affect the
          qualified status of such Benefit Plan

         2.21  Employee Relations. The Albany Business is not delinquent in
     payments to any of its employees or consultants for any wages, salaries,
     commissions, bonuses or other direct compensation for any services
     performed by them to the date hereof or amounts required to be reimbursed
     to such employees or consultants. Except as set forth in Schedule 2.21,
     upon termination of the employment of any of such employees, the Albany
     Business will not, by reason of anything done prior to the Closing, be
     liable to any of such employees for severance pay or any other payments
     (other than accrued salary, vacation or sick pay in accordance with the
     normal policies of the Albany Business). Except as set forth in Schedule
     2.21, there are no

                                       14
<PAGE>

     administrative charges or court complaints against the Albany Business
     concerning employment related matters.

         2.22  Backlog. Schedule 2.22 hereof sets forth the true and accurate
     backlog (as of the date set forth therein) of firm orders for the sale of
     products or services of the Albany Business for which revenues have not
     been recognized by the Albany Business.

         2.23  Compliance with Law. Except as set forth in Schedule 2.23 and
     except as would not have a material adverse effect on the Albany Business
     and subject to Section 2.30 hereof, the Albany Business conducts its
     business and utilizes its property in compliance in all material respects
     with all applicable statutes, regulations, orders, and restrictions of the
     United States of America, all applicable states and other subdivisions
     thereof, all applicable foreign jurisdictions, all agencies and
     instrumentalities of the foregoing, and all applicable national and
     international self-regulatory bodies and authorities in respect of the
     conduct of its business and ownership of its properties, and the
     regulations adopted under such statutes. Except as set forth in Schedule
     2.23 and Schedule 2.30, no claims, complaints, reports, or other documents
     have been issued by any governmental agency concerning the operations of
     the Albany Business.

         2.24  Bank Accounts. Attached to this Agreement as Schedule 2.24 is a
     true and complete list of all bank accounts (including, without limitation,
     all checking accounts, savings accounts, N.O.W. accounts, or similar
     accounts), safe deposit boxes, and money market fund accounts or similar
     deposit accounts of the Albany Business, together with a list of all
     authorized signatories relating to each account.

         2.25  Insurance. Set forth on Schedule 2.25 is a complete list and
     description of all policies of insurance including a list of all claims
     filed since August 1, 1998, together with the premiums currently payable
     thereon, providing for fire, property, casualty, business interruption,
     personal or product liability, workers' compensation, errors and omissions,
     and other forms of insurance coverage maintained by the Company or an
     Affiliate of the Company with regard to the Albany Business. There is no
     claim, action, suit, or proceeding arising out of or based upon any such
     policies of insurance, and the Seller and the Albany Business have no
     knowledge of the existence of any facts that would reasonably be expected
     to constitute a basis for any such claim, action, suit, or proceeding.
     There is no notice of any pending or threatened termination or premium
     increase, including a retroactive premium adjustment, or default or
     omission by the Albany Business with respect to any of such policies, and
     the Albany Business is in material compliance with all conditions contained
     therein.

         2.26  No Conflicts with Other Agreements. The execution, delivery, and
     performance of this Agreement and the consummation of the transactions
     contemplated hereby by Seller do not, and will not, violate any provisions
     of the Articles of Organization or Company Agreement of the Company or
     violate any provision of, or cause a default under, or result in the
     acceleration of any obligation under any agreement, instrument, lease,
     lien, judgment, statute, law, rule, or regulation to which the Seller or
     the Albany Business are a party or by which Seller or the Albany Business
     or the property of Seller or the Albany Business may be bound or affected,
     or conflict with or result in any breach of any of the terms, conditions,
     or provisions of, or constitute a default under, or result in the creation
     of any lien, security interest, charge, or encumbrance upon any of the
     assets of the Albany Business under any note, indenture, mortgage, lease,
     agreement, contract, purchase order, or other instrument or document to
     which the Albany

                                       15
<PAGE>

     Business is a party or by which it or any of its assets is bound or
     affected. The execution, delivery, and performance of this Agreement and
     the consummation of the transactions contemplated hereby by Seller does
     not, and will not, require the consent or approval of, or filing with, any
     court or administrative or governmental authority. The Seller has the legal
     right and power to enter into this Agreement and to carry out the
     transactions herein contemplated.

         2.27  Taxes. Seller has delivered to Buyer copies of all tax returns
     relating to the Company since August 1, 1998. Except as reflected on the
     Financial Statements, there are no outstanding claims against the Company
     for taxes (whether income taxes, employment taxes, withholding taxes,
     franchise taxes, sales or use taxes, license taxes, excise taxes, or
     otherwise) imposed by any federal, state, local, or other governmental
     agency, authority, or subdivision. All tax returns and reports of the
     Company required by law to be filed have been duly filed. All taxes,
     assessments, fees, penalties, interest, and other governmental charges
     (collectively, "Taxes") with respect to the Company and the Albany Business
     which are due and payable have been paid and all taxes to be payable and
     which are not yet due have been established as a reserve on the Financial
     Statements. The Albany Business will have no liability for taxes in excess
     of the amounts so paid or the reserves so established. No audit, dispute,
     or administrative proceeding relating thereto is pending or to the
     knowledge of Seller or the Company threatened.

         2.28  Licenses and Permits. The Albany Business has all permits,
     licenses, orders, and approvals of all federal, state, local, or foreign
     governmental or regulatory bodies, and of all other persons, firms, and
     entities required for it to own its assets and carry on its business as
     presently conducted. Schedule 2.28 sets forth a list of those permits,
     license, orders and approvals which the Company believes are material to
     the Albany Business. All such permits, licenses, orders, and approvals are
     in full force and effect, there have been no violations thereof by the
     Albany Business, and no suspension or cancellation or limitation of any of
     them is pending or threatened. Except as set forth on Schedule 2.28, none
     of such permits, licenses, orders, or approvals will be adversely affected
     by the consummation of the transactions described in this Agreement and
     will be in full force and effect after the Closing.

         2.29  Equipment Leases. Attached hereto as Schedule 2.29 is an accurate
     and complete list of all equipment leases to which the Albany Business is a
     party, including the name and address of the parties, the expiration date
     of the lease, the monthly rent, and any additional rent payable under such
     lease. True and complete copies of all such leases and any amendments
     thereto have been delivered to Buyer. The Albany Business and each other
     party thereto is in good standing under each such lease, and has received
     no notice of default from any other party thereto nor any notice of
     noncompliance with applicable state, federal, or municipal regulations; the
     Albany Business has no obligation under such lease which it has not fully
     performed, and Seller is not aware of any expenditures which are likely to
     be required under the provisions of any such lease for any purpose other
     than payment of rent.

         2.30  Environmental Matters.

               (a) For purposes of this Section 2.30, the following terms shall
          have the meanings set forth below:

                                       16
<PAGE>

               "Hazardous Substances" means (i) a pollutant, contaminant or
          hazardous substance as defined in the Comprehensive Environmental
          Response, Compensation and Liability Act, 42 U.S.C.ss. 9600 et seq.,
          and its accompanying regulations ("CERCLA") or (ii) any hazardous
          waste as defined in the Resource Conservation and Recovery Act, 42
          U.S.C.ss. 6901 et seq.., and its accompanying regulations ("RCRA").

               "Environmental Laws" means (i) CERCLA; (ii) RCRA; (iii) the Clean
          Air Act; (iv) the Water Pollution Control Act; (v) the Toxic
          Substances Control Act; (vi) the Occupational Safety and Health Act;
          (vii) the State of Oregon counterparts to these laws, and (viii) any
          regulations which are promulgated pursuant to the foregoing laws.

               (b) Except as specifically set forth in Schedule 2.30(b) and
          except in material compliance with Environmental Laws, the Albany
          Business, during any time from and after August 1, 1998, has not
          engaged in the handling, treatment, storage, use, generation, release,
          dumping, or disposal of any Hazardous Substances. Except as set forth
          in Schedule 2.30(b) and except in material compliance with
          Environmental Laws, no Hazardous Substances, during any time from and
          after August 1, 1998, have been released on, under, in or to the Real
          Estate in any quantity or concentration that requires reporting under
          any Environmental Law or in any manner that is reasonably likely to
          have a material adverse effect on the Albany Business.

               (c) To the knowledge of the Seller and the Company, except as
          specifically set forth in Schedule 2.30(c), no underground storage
          tanks are located on the Real Estate.

               (d) Except as specifically set forth in Schedule 2.30(d), the
          Albany Business's activities on the Real Estate comply with all
          Environmental Laws except as would not have a material adverse effect
          on the Albany Business. All permits under Environmental Laws necessary
          for the operation of the Albany Business as presently conducted are
          listed in Schedule 2.30(d).

               (e) Except as specifically set forth in Schedule 2.30(e), (i)
          there are no outstanding orders, judgments, or decrees of any court or
          of any governmental agency or instrumentality under any Environmental
          Law which specifically apply to the Albany Facility; and (ii) the
          Company has not received from any governmental agency or
          instrumentality or any other person notice that it has been named as a
          responsible or potentially responsible party under any Environmental
          Law for any site contaminated by Hazardous Substances.

         2.31  Warranty Claims. Except as set forth on Schedule 2.31, neither
     the Seller nor the Company has any knowledge of any existing or threatened
     warranty claims related to products previously delivered by the Albany
     Business.

         2.32  Year 2000 Issues. The Albany Business has completed reviews of
     those computers and imbedded systems which it believes could be susceptible
     to faults as a result of an inability to recognize dates in the calendar
     year 2000. To the Knowledge of the Seller and the Albany Business based
     upon such reviews, the arrival of the calendar year 2000 will not result in
     a fault in any computer or imbedded system which would give rise to a
     material adverse effect on the Albany Business.

                                       17
<PAGE>

     3.  Representations and Warranties of Buyer

         Buyer hereby represents and warrants to Seller the following:

         3.1   Corporate Status. Buyer is a corporation duly organized, validly
     existing, and in good standing under the laws of the State of Nevada.

         3.2   Authorization. Buyer has full power and authority to enter into
     this Agreement and to consummate the transactions contemplated under this
     Agreement; all necessary corporate action shall be duly taken in order to
     authorize and ratify the execution and consummation of this Agreement; and
     this Agreement constitutes the legal, valid, and binding obligation of
     Buyer, enforceable in accordance with its terms and conditions, except as
     enforceability may be limited by general principles of equity and laws
     affecting rights of creditors generally.

         3.3   No Conflict with Other Agreements. Neither the execution and
     delivery of this Agreement nor the consummation of the transactions
     contemplated by this Agreement will conflict with, or result in a breach of
     (a) any of the terms, conditions, or provisions of any law or any
     regulation, order, writ, injunction, or decree of any court or government
     instrumentality; (b) the Articles of Incorporation or Bylaws of the Buyer;
     (c) and any agreement or other instrument to which the Buyer is a party, or
     by which it is bound. All consents of third parties which may be required
     of Buyer with respect to the transactions contemplated by this Agreement
     have been obtained.

     4.  Covenants of the Seller

         4.1   Conduct of Albany Business of the Albany Business.

               (a) From the date hereof through the Closing Date, the Seller, to
          the extent that Seller is allowed to exert any control over the Albany
          Business pursuant to the Agreement Containing Consent Orders, will
          cause the Company to take such reasonable actions as may be necessary
          to preserve the business organization of the Albany Business intact;
          keep available to the Albany Business the services of all current
          employees and consultants; and preserve for the Buyer the goodwill of
          the suppliers, customers, employees, and others having business
          relations with the Albany Business;

               (b) From the date hereof through the Closing Date, except as
          otherwise permitted by this Agreement or consented to in writing by
          Buyer, the Seller, to the extent that Seller is allowed to exert any
          control over the Albany Business pursuant to the Agreement Containing
          Consent Orders, will cause the Company to continue the operation of
          the Albany Business in the ordinary course and maintain the assets,
          properties, and rights of the Albany Business in at least as good
          order and physical condition as exists on the date hereof, subject to
          ordinary wear and tear. Without limiting the generality of the
          foregoing, except as otherwise permitted by this Agreement or
          consented to in writing by Buyer, the Seller, to the extent that
          Seller is allowed to exert any control over the Albany Business
          pursuant to the Agreement Containing Consent Orders, will not and will
          not permit the Company or the Albany Business to,

                   (i)     incur any obligation or liability (absolute, accrued,
               contingent, or other), or increase the amount outstanding under
               any existing obligation of the Company or the Albany Business,
               including as a result of any draw under any line of credit,
               except in the ordinary course of business and consistent with the
               Albany Business's past business practices;

                                       18
<PAGE>

                   (ii)    extend or defer the payment or satisfaction of any
               obligation or liability (absolute, accrued, contingent, or other)
               beyond the time that such payment or satisfaction would have been
               due or paid pursuant to the terms of the instrument creating such
               obligation or liability except in the ordinary course of business
               and consistent with the Albany Business's past business
               practices;

                   (iii)   accelerate or attempt to accelerate the collection of
               any account receivable or bill for, or collect for goods sold or
               to be sold or services rendered or to be rendered prior to the
               time that such receivable or amount would have been posted or
               collected under the terms of the instrument creating such
               receivable except in the ordinary course of business and
               consistent with the Albany Business's past business practices;

                   (iv)    transfer any asset to, pay any commission, salary,
               bonus, rent, or fee to, or make or receive any loan to or from
               any member or any relative or affiliate of any member, or redeem
               or purchase any of its portion of the Membership Interest, or
               agree to take any such action;

                   (v)     establish, increase, decrease, or eliminate any
               reserve for taxes or other liabilities, except through the
               payment of such taxes or other liabilities (except for any
               adjustment in any reserve for taxes in the ordinary course of
               business and consistent with the Albany Business's past business
               practices);

                   (vi)    sell, assign, lease, or otherwise transfer or dispose
               of any of the Real Estate or personal property or equipment of
               the Company or the Albany Business, except for the replacement of
               any worn out equipment in the ordinary and usual course of
               business;

                   (vii)   mortgage, pledge, or subject to lien, charge, or
               other encumbrance any of the Real Estate or personal property or
               equipment of the Company or the Albany Business;

                   (viii)  cancel any debt or claim, or waive any right;

                   (ix)    grant any increase in the compensation payable to any
               member, officer, consultant, employee, or agent of the Albany
               Business or terminate or hire any new employee, agent, or
               consultant except in the ordinary course of business;

                   (x)     enter into or agree to enter into any transaction
               with or for the benefit of any member or any relative or
               Affiliate of any member;

                   (xi)    issue, sell, or transfer, or agree to issue, sell, or
               transfer, any bond, debenture, or other security of the Company;

                   (xii)   make any distributions or dividends to the members of
               the Company (except that Seller may cause cash to be distributed
               from the Company to Seller from time to time so long as such
               distribution does not result in a material adverse effect on the
               Albany Business), conduct any transactions in the Membership
               Interest, or allow the exercise of any outstanding warrants,
               options, or puts of securities of the Albany Business;

                                       19
<PAGE>

                   (xiii)  enter into or amend any contract for the employment
               of any officer, manager, employee, or other person on a
               full-time, part-time, or consulting basis that is not terminable
               by the Albany Business upon notice of thirty days or less without
               cost or other liability to the Albany Business or any successor
               thereof, except for accrued vacation pay and for past services;

                   (xiv)   enter into any leases, agreements, contracts, or
               other commitments, whether written or oral, other than
               commitments for the purchase or sale of inventory or supplies
               (in each case entered into in the ordinary and regular course of
               business of the Albany Business);

                   (xv)    materially modify, amend, supplement, or extend any
               material contract;

                   (xvi)   institute, terminate, or settle any administrative or
               judicial proceedings;

                   (xvii)  defer making any payment or a contribution under any
               ERISA Plan or Non-ERISA Plan or incur any obligation to make any
               such payment or contribution beyond the time that such would have
               been made or incurred in the ordinary course of business and
               consistent with the Albany Business's past practices;

                   (xviii) amend the Articles of Organization of the Company;

                   (xix)   make any change in any of the Company's methods of
               tax reporting or accounting; or

                   (x)     change the banking or safe deposit arrangements of
               the Albany Business.

         4.2   Actions. To the extent that Seller is allowed to exert any
     control over the Albany Business pursuant to the Agreement Containing
     Consent Orders, the Seller shall (i) take or cause to be taken all actions
     as may be necessary to keep accurate as of the Closing Date all
     representations and warranties of Seller, (ii) refrain from taking or
     causing to be taken any action that would render any of such
     representations or warranties inaccurate as of the Closing Date, and (iii)
     take or cause to be taken all steps as may be necessary and obtain all
     agreements as may be necessary to perform or cause to be satisfied each
     covenant or condition as provided under this Agreement.

         4.3   Additional Further Action. If, at any time after the Closing, the
     Buyer or the Company shall consider or be advised that any deeds, bills of
     sale, assignments, assurances of any other actions or things are necessary
     or desirable to vest, perfect, or confirm of record or otherwise in Buyer,
     the Company or the Albany Business its right, title, or interest in, to, or
     under any of the rights, properties, or assets acquired as a result of, or
     in connection with, this Agreement or to otherwise carry out any of the
     terms or provisions of this Agreement, the Seller, upon notice from the
     Buyer or the Company, shall execute and deliver all such deeds, bills of
     sale, assignments, and assurances and to take and do all such other actions
     and things as may be necessary or desirable to vest, perfect, or confirm
     any and all right, title, and interest in, to, and under such rights,
     properties, or assets in Buyer or the Company or to otherwise carry out
     this Agreement.

                                       20
<PAGE>

         4.4   Affirmative Obligations. From the date hereof through the Closing
     Date, the Seller will, or will cause the Company and the Albany Business
     to,

               (a) comply in all material respects with all applicable laws and
          regulations; and

               (b) permit Buyer to contact agents, customers, and suppliers of
          the Albany Business to discover and confirm the nature of such agents,
          customers and suppliers' business relationship with the Albany
          Business and to preserve for Buyer the goodwill of the agents,
          suppliers, customers, and others having business relations with the
          Albany Business, provided that Buyer does not disclose the terms of
          this Agreement to any of such persons or entities without the Seller's
          prior written consent.

         4.5   Cooperation with FTC. Buyer hereby expressly acknowledges that
     consummation of the transactions contemplated hereby is subject to the
     approval of the FTC in connection with the FTC's review of the Tender Offer
     and the other transactions contemplated by the Merger Agreement. Buyer
     covenants and agrees to use its commercially reasonable efforts to obtain
     and furnish any information requested by the FTC regarding Buyer or the
     transactions contemplated hereby and to otherwise cooperate with Seller in
     obtaining approval by the FTC of this Agreement and the transactions
     contemplated hereby. Seller shall use commercially reasonable efforts to
     obtain the approval of this Agreement and the transactions contemplated
     hereby by the FTC.

         4.6   Non-Solicitation/Employment Obligations. From the date hereof
     through and including that date which is eighteen (18) months after the
     Closing, neither Seller nor any Affiliate of Seller shall employ or make
     any offers of employment to any Key Employee of the Albany Business unless
     the employment of any such Key Employee is involuntarily terminated from
     the Albany Business. For purposes hereof, the term "Key Employee" shall
     mean those employees specifically designated as Key Employees of the Albany
     Business pursuant to the Agreement Containing Consent Orders.

         4.7   Accrual of Stay Bonuses and Management Incentive Bonuses.
     Pursuant to the Agreement Containing Consent Orders, Seller has agreed
     with the FTC to provide incentive bonuses ("Stay Bonuses") for Key
     Employees who continue their employment with the Albany Business through
     the Closing. The Seller and Buyer have agreed that, for administrative
     convenience, such Stay Bonuses will be paid by the Company through the
     payroll of the Albany Business. In this regard, Seller, prior to the
     Closing, shall cause to be accrued on the books of the Albany Business a
     liability for such Stay Bonuses and will also endeavor to leave sufficient
     cash in the payroll account of the Albany Business to enable the Company
     to pay such Stay Bonuses and associated withholding immediately after the
     Closing. Similarly, Seller has agreed that certain top management
     employees of the Albany Business will be entitled at the time of Closing
     to payments under the Management Incentive Plan maintained by Seller for
     such employees. Again, for administrative convenience, the Seller and
     Buyer have agreed that such management incentive bonuses shall be paid
     through the payroll of the Albany Business. In this regard, Seller, prior
     to the Closing, shall cause to be accrued on the books of the Albany
     Business a liability for such management incentive bonuses and will also
     endeavor to leave sufficient cash in the payroll account of the Albany
     Business to enable the Company to pay such management incentive bonuses
     and associated withholding immediately after the Closing.

                                       21
<PAGE>

         4.8   Termination of Company Agreement. Prior to the Closing, Seller
     shall cause the Company Agreement to be terminated and of no further force
     and effect.

     5.  Conditions to Obligations of Buyer

     The obligations of Buyer under this Agreement are subject to the
satisfaction of all of the following conditions prior to or at Closing, unless
waived by Buyer in writing:

         5.1   Representations and Warranties. All of the representations and
     warranties by Seller contained in this Agreement shall have been true in
     all material respects when made and as of the Closing Date except as would
     not have a material adverse effect on the Albany Business; and, with
     respect to any representation or warranty made to Seller's Knowledge, the
     underlying facts and circumstances shall have been true in all material
     respects except as would not have a material adverse effect on the Albany
     Business.

         5.2   Material Performance by Seller. Seller shall have performed and
     complied or caused to be performed or complied, in either case in all
     material respects, with all agreements and conditions required by this
     Agreement to be performed or complied with by the Seller or the Albany
     Business prior to the Closing Date.

         5.3   No Material Adverse Change. There shall not have occurred, nor
     shall there exist as of the Closing, any event or set of circumstances that
     constitutes or has resulted in a material adverse change in the financial
     condition, properties or results of operation of theAlbany Business.

         5.4   Books and Records. At Closing, Seller shall have delivered to the
     Buyer original documents and any copies pertinent to the Company and the
     Albany Business, including minute books, membership interest ledgers,
     company seals and all contracts, leases correspondence, brochures and other
     written or printed matter belonging to the Albany Business.

         5.5   Certificate of Good Standing. At Closing, Seller shall have
     delivered to Buyer certificates indicating that the Company is in good
     standing under the laws of Delaware and in each jurisdiction in which it is
     qualified to do business as a foreign entity.

         5.6   Delivery of Certificates. Seller shall execute and deliver the
     assignments of membership interest.

         5.7   Resignation of Officers and Directors. The officers and
     management committee members of the Company shall have submitted their
     resignations to Buyer, with the exception of those officers designated as
     necessary on Exhibit 5.7 by Buyer.

         5.8   No Litigation. With the exception of the Agreement containing
     Consent Order with the FTC, no proceeding shall be pending or threatened
     before any court or any administrative or governmental authority to
     restrain or prohibit or to obtain damages or other relief in connection
     with the consummation of the transactions contemplated by this Agreement,
     and no investigation that might eventuate in any such proceeding shall be
     pending or threatened.

                                       22
<PAGE>

         5.9   FTC Approval. The FTC shall have indicated in writing to Seller
     that it deems Buyer to be an acceptable buyer of the Albany Business.

         5.10  Side Letter from TIMET. Seller shall have delivered to Buyer a
     letter from TIMET acknowledging TIMET's consent that the rights of
     indemnication of the Company against TIMET pursuant to the Asset
     Contribution Agreement may be enforced on behalf of the Company either by
     the Company itself or by any Affiliate of the Company.

     6. Conditions to Obligations of the Seller

     The obligations of Seller under this Agreement are subject to the
satisfaction prior to or at Closing of all of the following conditions, unless
waived by Seller in writing:

         6.1   Representations and Warranties. All representations and
     warranties by Buyer contained in this Agreement shall be true and complete
     in all material respects as of the Closing Date.

         6.2   Complete Performance by Buyer. Buyer, in all material respects,
     shall have performed and complied with all agreements and conditions on its
     part required by this Agreement to be performed and complied with prior to
     or as of the Closing Date.

         6.3  Payment of Purchase Price. The Buyer shall have caused to be
     delivered to Seller the Purchase Price in the manner set forth inss.1.4.

     7. Transition.

         7.1   Employee Matters.

               (a) Termination of Participation in Seller Benefit Plans.

               As of the Closing Date, all Employees shall cease to participate
          in or benefit under Seller Benefit Plans. For purposes of this
          Agreement "Seller Benefit Plans" shall mean those Benefit Plans
          sponsored by the Seller or an ERISA Affiliate of the Seller other than
          the Company in which the Company was an adopting affiliate or whose
          Employees benefitted from under such Benefit Plans prior to the
          Closing Date.

               (b) Buyer COBRA Compliance.

               Buyer agrees that Buyer shall be responsible for providing
          Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA")
          continuation coverage under Code ss.4980B to any person who is an M&A
          qualified beneficiary within the meaning of Prop. Treas. Reg. ss.
          54.4980B-9. If Buyer fails to fulfill its obligation to provide COBRA
          continuation coverage in accordance with this provision, Buyer shall
          indemnify and hold harmless the Seller and its ERISA Affiliates
          against any claim, cost, expense, liability, obligation, loss, or
          damage, including attorneys' fees sustained by such failure.

                                       23
<PAGE>

               (c) Direct Transfer of Balances in Seller's Savings and
          Investment Plan.

               Seller and Buyer shall take all necessary steps consistent with
          applicable law to provide that certain accounts under Seller's Savings
          and Investment Plan identified in Section 2.20 shall be transferred in
          a direct trustee-to-trustee transfer from Seller's Savings and
          Investment Plan to a plan maintained by Buyer which is subject to
          Section 401(k) of the Code ("Buyer's Plan"). Accounts transferred
          pursuant to the preceding sentence shall be all accounts under
          Seller's Savings and Investment Plan (including, to the extent
          reasonably feasible as determined by the administrator of Buyer's
          Plan, any then-outstanding participant loans) of Employees who are
          employees of the Company as of the day after the Closing Date. Such
          transfer shall be carried out as soon as reasonably practicable after
          the Closing Date. With respect to any such transferred participant
          loans, such transfer of currently outstanding loans under this
          provision is not intended to obligate Buyer's Plan to allow
          participants to take out new loans with respect to such transferred
          accounts, or to prevent such new loans if permitted under generally
          applicable provisions of Buyer's Plan.

               (d) Required Documentation.

               In connection with the implementation of this Section 7.1, the
          Seller and the Buyer shall cooperate, and the Seller or the Buyer, as
          the case may be, shall cause the Company to cooperate, in the
          preparation and filing of all documentation required to be filed with
          any, trustee, fiduciary, applicable governmental agency or authority,
          or other third party.

         7.2  Assistance. Seller will cooperate with Buyer and will use its best
     efforts to assist Buyer in a smooth transition of the ownership and
     operation of the Albany Business on and after Closing Date, including the
     preservation of the continued services of the employees of the Albany
     Business and the preservation for the Albany Business of the goodwill of
     suppliers, customers, and others having business relations with the Albany
     Business.

     8.  Indemnification.

         8.1   Indemnification by Seller Generally. Seller shall indemnify and
     hold harmless Buyer, the Company and their respective directors, managers,
     officers, shareholders, employees and agents, and their successors and
     assigns, against any claim, cost, expense, liability, obligation, loss, or
     damage, including attorneys' fees, sustained by Indemnitees arising out of
     or resulting from:

               (a) any misrepresentation or breach of any representation or
          warranty made by Seller in this Agreement or any Schedule or Exhibit
          attached hereto or delivered pursuant hereto;

               (b) the breach of any covenant, agreement or obligation of Seller
          contained in this Agreement or any Exhibit hereto or any other
          instrument contemplated by this Agreement;

               (c) any net increase in taxes assessed with regard to the Company
          with respect to any periods ending on or prior to the Closing, except
          to the extent that such increase is provided for in the Final Closing
          Balance Sheet;

                                       24
<PAGE>

               (d) the conduct by the Company of the Franklin Business and any
          other activity unrelated to the Albany Business;

               (e) damage to the City of Albany, Oregon stormwater drainage
          system caused by the September 2, 1999 acid spill at the Real Estate
          owned by the Albany Business; and

               (f) any fines or penalties levied by the United States
          Environmental Protection Agency ("EPA") as a result of previous
          reporting failures which the Albany Facility has since discovered and
          voluntarily brought to the attention of the EPA.

         8.2   Limitations on Indemnification by Seller.

               8.2.1 With respect to Section 8.1(a) above, Seller shall not be
          required to pay any amount under such Section 8.1(a) except to the
          extent that Buyer shall have incurred loss, liability, damage, cost or
          expense, including counsel fees, covered by the provisions of Section
          8.1(a) in excess of $500,000 in the aggregate (the "Deductible
          Amount"). In addition, the maximum amount for which Seller shall be
          liable under Section 8.1(a) shall be $5,000,000. Notwithstanding the
          foregoing, to the extent that the Company has claims for
          indemnification under the Asset Contribution Agreement against TIMET
          which are subject to the $1,000,000 aggregate threshold set forth in
          Section 6(b)(i)(B) of the Asset Contribution Agreement, the Deductible
          Amount shall be reduced by the extent to which such claims against
          TIMET exceed $500,000. By way of example, if the total value of claims
          against TIMET which are subject to Section 6(b)(i)(B) of the Asset
          Contribution Agreement is $700,000, then the Deductible Amount shall
          be reduced to $300,000. To the extent that the Company expresses its
          belief that it has claims against TIMET which are subject to the
          $1,000,000 aggregate threshold, the Company shall provide Seller with
          sufficient written notice and supporting material regarding such
          claims so as to enable Seller to understand the nature and value of
          such claims. In the event that Seller disagrees with the validity or
          value of any such claim, such dispute shall be resolved by reference
          to the dispute resolution provision of Section 12.7 of this Agreement.

               8.2.2 Recognizing that the Albany Business was operated by TIMET
          prior to August 1, 1998 and that, pursuant to the Asset Contribution
          Agreement, TIMET has retained certain liabilities and provided certain
          indemnifications in favor of the Company relating to the operation of
          the Albany Business prior to August 1, 1998, the parties hereto agree
          that the indemnification obligation of Seller under Section 8.1(a)
          shall pertain only to the extent that the facts and circumstances
          giving rise to such indemnification obligations actually occurred on
          or after August 1, 1998 and before the Closing.

         8.3   Credit for Tax Benefits. Seller shall receive a credit (on a
     present value basis) to be applied against any indemnity payments otherwise
     due hereunder for all tax credits, allowances, losses, deductions and
     refunds to which Buyer becomes entitled as a result of any of the losses,
     liabilities, damages, costs or expenses for which it is indemnified
     hereunder.

         8.4   Time Limit for Claims by Buyer against Seller. No claim for
     indemnification pursuant to Section 8.1(a) shall be made unless asserted by
     written notice prior to July 30, 2001, provided, however, that the time
     limit on any claim for fraud or willful concealment shall be 90 days
     following the time period which is prescribed by the applicable statute of
     limitations together with any period during which such statute of
     limitation is tolled. The rights and

                                       25
<PAGE>

     obligations of the parties under this Article 8 shall be the exclusive
     rights and obligations of the parties with respect to the breach of any
     representation or warranty of Seller set forth in this Agreement.

         8.5   Recovery from Third Parties. To the extent the Company has
     potential claims against TIMET, an insurer or any other party with respect
     to a matter indemnified by Seller under this Article 8, Buyer shall use all
     commercially reasonable efforts to pursue such claims against such other
     parties. Seller's indemnity obligations under this Article 8 shall be
     reduced by any amounts recovered by Buyer from any third party, less
     Buyer's reasonable legal costs in pursuing the recovery.

         8.6   Indemnification by Buyer. Buyer shall indemnify and hold harmless
     Seller and its directors, officers, shareholders, employees and agents, and
     their successors and assigns, against any claim, cost, expense, liability,
     obligation, loss, or damage, including attorneys' fees, sustained by
     Indemnitees arising out of or resulting from the conduct of the business,
     including the Albany Business, by the Buyer from and after the Closing
     Date.

     9.  Indemnification Procedures. In the case of any claim asserted by a
third party against an indemnified party (the "Indemnitee"), notice shall be
given by the Indemnitee to the indemnifying party (the "Indemnitor") promptly
after such Indemnitee has actual knowledge of any claim as to which indemnity
may be sought, and the Indemnitee shall permit the Indemnitor (at the expense of
Indemnitor) to assume the defense of any claim or any litigation resulting
therefrom, provided that (i) the counsel for the Indemnitor who shall conduct
the defense of such claim or litigation shall be reasonably satisfactory to the
Indemnitee, (ii) the Indemnitee may participate in such defense at such
Indemnitee's expense, and (iii) the omission by any Indemnitee to give notice as
provided herein shall not relieve the Indemnitor of its indemnification
obligation under this Agreement except to the extent that the Indemnitor is
materially damaged as a result of such failure to give notice. Except with the
prior written consent of the Indemnitee, the Indemnitor shall not consent to
entry of any judgment or enter into any settlement that provides for injunctive
or other nonmonetary relief affecting the Indemnitee. In the event that the
Indemnitor does not accept the defense of any matter as above provided, the
Indemnitee shall have the full right to defend against any such claim or demand.
In any event, the Indemnitor and the Indemnitee shall cooperate in the defense
of any claim or litigation subject to this Section 8.5 and the records of each
shall be available to the other with respect to such defense.

     10. Access to Information and Documents.

     From the date hereof through the Closing Date, the Seller will continue to
give or cause the Albany Business to give to Buyer and its financial advisers,
legal counsel, independent accountants, and other representatives reasonable
access during normal business hours to all properties, documents, contracts,
employees, and records of or relating to the Albany Business and will furnish
Buyer with copies of such documents (certified, if so requested) and with such
information with respect to their affairs as Buyer from time to time reasonably
may request.

                                       26
<PAGE>

     11. Termination; Recission of Transactions.

         11.1  Termination. This Agreement may be terminated at any time prior
     to consummation of the Closing by the parties as follows:

               (a) by written agreement of the Buyer and Seller;

               (b) by written notice from Buyer in the event that (i) the
          representations and warranties of Seller shall not have been true and
          correct in all material respects as of the date when made, or (ii) if
          any of the conditions to Buyer's obligations as set forth in Section 5
          shall not have been, or if it becomes apparent that any of such
          conditions will not be, fulfilled by the Closing Date;

               (c) by written notice from Seller in the event that (i) the
          representations and warranties of Buyer shall not have been true and
          correct in all material respects as of the date when made, or (ii) if
          any of the conditions to Seller's obligations as set forth in Section
          6 shall not have been, or if it becomes apparent that any of such
          conditions will not be, fulfilled by the Closing Date;

               (d) by written notice of Seller if, in the reasonable and good
          faith judgement of Seller, the FTC will not approve the sale of the
          Company to the Buyer.

         11.2  Recission of Transactions. Buyer and Seller hereby expressly
     agree to consummate the transactions contemplated under this Agreement upon
     satisfaction of the conditions set forth in Article 5 hereof
     notwithstanding that FTC approval of the Agreement and the transactions
     contemplated hereby shall at such time be preliminary in nature and subject
     to the final order of the FTC. The parties hereby agree that if, at the
     time the FTC determines to make its order final, the FTC notified Seller
     that Buyer is not an acceptable acquiror of the Purchased Assets or that
     the Agreement is not an acceptable manner of divestiture, then (i) Seller
     shall immediately rescind the sale to Buyer of the Purchased Assets
     hereunder, (ii) Buyer and Seller shall return to their respective positions
     immediately prior to the closing, Agreement shall terminate and all
     obligations of the parties hereunder shall cease upon such termination; and
     (iv) Buyer shall have no claims against Seller of any nature whatsoever
     other than for the repayment of the Purchase Price.

     12. Miscellaneous.

         12.1  Binding Effect. This Agreement, including the Schedules and
     Exhibits, shall be binding upon and shall inure to the benefit of the
     parties hereto and their respective permitted successors and assigns.

         12.2  Entire Agreement. This Agreement constitutes the entire agreement
     between the parties and there are no representations, warranties,
     covenants, or obligations except as set forth herein. This Agreement
     supersedes all prior or contemporaneous agreements, understandings,
     negotiations, and discussions, written or oral, of the parties hereto,
     relating to any transaction contemplated by this Agreement. Nothing in this
     Agreement is intended or shall be construed to confer upon or to give any
     person other than the parties hereto any rights or remedies under or by
     reason of this Agreement.

         12.3  Severability. Each provision of this Agreement shall be
     considered separable and if for any reason any provision or provisions
     herein are determined to be invalid and contrary to any

                                       27
<PAGE>

     existing or future law, such invalidity shall not impair the operation of
     this Agreement or affect those portions of this Agreement which are valid.

         12.4  Notices. Any notices, requests, demands, or other communications
     hereunder, shall be in writing and shall be deemed to have been duly given
     when personally delivered or transmitted by facsimile or five days after
     being mailed by U.S. registered or certified mail, return receipt
     requested, postage prepaid, to the following addresses:

               If to Seller:

                      Wyman-Gordon Company
                      244 Worcester Street
                      North Grafton, MA  01536-8001
                      Attention:  General Counsel
                      Telephone:  508-839-8311
                      FAX: 508-839-7500

               With a copy to:

                      Stoel Rives LLP
                      900 SW Fifth Avenue, Suite 2600
                      Portland, OR  97204-1268
                      Attention:  Ruth A. Beyer, Esq.
                      Telephone:  503-294-9332
                      FAX: 503-294-9853

               If to Buyer:

                      McLad Corporation
                      C/o Ladish Co., Inc.
                      5481 S. Packard Avenue
                      Cudahy, WI  53110
                      Attention:  Wayne E. Larsen
                      Telephone:  414-747-2935
                      FAX:  414-747-2890

               with a required copy to

                      Foley & Lardner
                      777 E. Wisconsin Avenue
                      Milwaukee, WI  53202
                      Attention:  John M. Olson, Esq.
                      Telephone:  414-297-5640
                      FAX:  414-297-4900

               or to such other address as either party may specify in writing
               to the other.

                                       28
<PAGE>

         12.5  Further Assurances. The parties shall execute and deliver such
     other and further documents or instruments as may be reasonably required to
     consummate the transactions contemplated by this Agreement.

         12.6  Extensions and Waivers. Buyer and Seller may, only by written
     agreement signed by all parties, (a) extend the time for the performance of
     any of their obligations or other acts under this Agreement; (b) waive any
     inaccuracies in any of the representations and warranties contained in this
     Agreement or in any instruments and documents delivered pursuant to this
     Agreement; (c) waive compliance with or modify any of the covenants or
     agreements contained in this Agreement; or (d) waive or modify the
     performance of any of the obligations or other acts of the parties to this
     Agreement.

         12.7  Dispute Resolution. In the event of a dispute between the parties
     concerning their respective rights and obligations under this Agreement, or
     the breach, termination, negotiation, or validity hereof and/or the rights
     or obligations of the parties arising out of or relating to this Agreement
     or the breach, termination, negotiation or validity thereof, in any case
     that the parties are unable to resolve amicably between themselves within
     60 days of proper notice from one party to another, such dispute shall be
     settled by arbitration in Denver, Colorado in an expedited manner in
     accordance with the Rules of the American Arbitration Association by a duly
     registered arbitrator to be selected jointly by the parties. In the event
     that the parties cannot agree on an arbitrator, an arbitrator shall be
     appointed by the President of the American Arbitration Association. The
     decision of the arbitrator shall be final and binding upon the parties.
     Each party irrevocably waives any objection to proceeding before the
     American Arbitration Association based upon lack of personal jurisdiction
     or to the laying of venue and further irrevocably and unconditionally
     waives and agrees not to make a claim in any court that dispute resolution
     before the American Arbitration Association has been brought in an
     inconvenient forum. Each of the parties hereto agrees that its submission
     to jurisdiction is made for the express benefit of the other parties
     hereto. Notwithstanding the above, any party shall be entitled to seek a
     restraining order or preliminary injunction in any court of competent
     jurisdiction.

         12.8  Choice of Law/Consent to Jurisdiction. All disputes, claims or
     controversies arising out of or relating to this Agreement, or the
     negotiation, validity or performance of this Agreement, or the transactions
     contemplated hereby shall be governed by and construed in accordance with
     the laws of the State of Oregon without regard to its rules of conflict of
     laws. Each of the parties hereto hereby irrevocably and unconditionally
     consents to submit to the jurisdiction of the courts of the State of Oregon
     and of the United States District Court for the District of Oregon (the
     "Oregon Courts") solely and exclusively for purposes of enforcing any award
     or decision in any proceeding under Section 12.7 and for any litigation
     arising out of or relating to this Agreement, or the negotiation, validity
     or performance of this Agreement, or the transactions contemplated hereby
     (and agrees not to commence any litigation relating thereto except in such
     courts), waives any objection to the laying of venue of any such litigation
     in the Oregon Courts and agrees not to plead or claim in any Oregon Court
     that such litigation in the Oregon Courts has been brought in any
     inconvenient forum. Each of the parties hereto agrees, (i) to the extent
     such party is not otherwise subject to service of process , and (ii) that
     service of process may also be made on such party by prepaid certified mail
     with a proof of mailing receipt validated by the United States Postal
     Service constituting evidence of valid service. Service

                                       29
<PAGE>

     made pursuant to (i) or (ii) above shall have the same legal force and
     effect as if served upon such party personally within the State of Oregon.

         12.9  Enumerations, and Headings. The enumerations and headings
     contained in this Agreement are for convenience of reference only and are
     not intended to have any substantive significance in interpreting this
     Agreement.

         12.10 Amendment. This Agreement may not be modified or amended except
     with the written consent of both Seller and Buyer.

         12.11 Expenses. Except as otherwise expressly set forth herein, Seller
     and Buyer shall pay their own expenses in connection with the preparation,
     negotiation, and performance of this Agreement and the consummation of the
     transactions contemplated hereby, including, without limitation, all fees
     and expenses of investment bankers, financial advisors, legal counsel,
     independent accountants, and actuaries.

         12.12 Counterparts. This Agreement may be executed in one or more
     counterparts, each of which shall be deemed to be an original instrument
     and all of which together shall be deemed to be one and the same
     instrument, and shall become effective when one or more counterparts shall
     have been signed by each of the parties.

                                       30
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement under
seal effective as of the day and year first above written.

WYMAN-GORDON COMPANY                       MCLAD CORPORATION

By:                                         By:
   ------------------------------              -------------------------------
Name:                                       Name:
Title:                                      Title:

LADISH CO., INC., a Wisconsin corporation,
For purposes of being jointly and severally liable for the obligations of Buyer

By:
   ------------------------------
Name:
Title:

                                       31

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