Document:

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                                                               EXHIBIT 10.9

                     TECHNOLOGY DEVELOPMENT AGREEMENT

This Technology Development Agreement is made as of the 14th day of December,
1998, by and between Medis-El LTD., an Israeli Corporation, (hereafter
"Medis-El," which term shall include all of Medis-El's related companies) and
The Coca-Cola Company, a Delaware Corporation, ("TCCC").

                                  RECITALS

TCCC and Medis-El each have continuing programs to develop and commercialize
new technologies, and desire, as they may agree from time-to-time, to work
together to apply some of these technologies to the Beverage Field (defined
below in Section 2.3.1).

In particular, Medis-El is the owner or licensee of various technologies
having application to the Beverage Field, including technologies relating to
stirling cycle engines, toroidal compressors, and fuel cells. TCCC desires to
assist in the development of the stirling cycle engine, and to have the first
right to obtain, in connection with the Beverage Field, exclusive rights to
the other technologies, and to new technologies of Medis-El.

TCCC and Medis-El desire to set forth their agreement with respect to
Medis-El's technologies that may apply to the Beverage Field.

NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

1.   NEW TECHNOLOGY

     1.1  PERIODIC MEETINGS

     Recognizing that both parties will benefit from a close working
     relationship, TCCC and Medis-El will periodically meet (in-person
     or electronically, with the frequency to be agreed upon) to discuss
     new technology developed by Medis-El that may apply to the Beverage
     Field. Medis-El will disclose such technologies to TCCC before it
     discloses them to others for use in the Beverage Field.

     1.2  RIGHTS TO NEW TECHNOLOGY

     If Medis-El decides to develop or make available technology having
     application to the Beverage Field, then TCCC shall have a right of
     first refusal to obtain exclusive rights to use such technology in the
     Beverage Field, on the best terms and conditions offered by Medis-El.
     TCCC shall have a reasonable period of time to notify Medis-El if it is
     interested in the technology. A

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     reasonable period of time is targeted at three months, but may be longer
     depending on the maturity and complexity of the technology. If TCCC is
     interested, then Medis-El and TCCC will negotiate an appropriate
     agreement.

2.   DEVELOPMENT OF STIRLING CYCLE ENGINE

     2.1  DEVELOPMENT

     Medis-El has developed certain technology for a stirling cycle engine.
     TCCC desires to assist in further development of Medis-El's stirling
     cycle engine, for use in the Beverage Field, according to the attached
     development plan (Exhibit A). Throughout the development effort, the
     parties will openly discuss progress of the work and any issues that
     arise, and discuss these issues reasonably as soon as they arise. TCCC
     may choose, at any time, to discontinue its development efforts on
     this development project, with no further obligation or liability
     hereunder. If TCCC so chooses, it will be deemed to have notified
     Medis-El that it is not interested in obtaining exclusive rights to
     the stirling cycle technology pursuant to Section 1.2.

     2.2  INTELLECTUAL PROPERTY

          2.2.1  OWNERSHIP OF PRIOR INVENTIONS

          Any inventions or technology made or developed, or patent
          applications and patents filed or owned by or licensed to a party
          hereto, prior to the effective date of this Agreement shall continue
          to belong to such party.

          2.2.2  OWNERSHIP OF SOLELY MADE INVENTIONS

          All patent rights to any inventions or technology made solely by
          either party shall vest in and be the property of the party that
          made it.

          2.2.3  OWNERSHIP OF JOINTLY MADE INVENTIONS

          If any inventions or technology are jointly made by Medis-El and
          TCCC, then Medis-El shall own the patent rights, but TCCC has a
          royalty-free, fully paid-up, perpetual, world-wide, irrevocable,
          non-exclusive license under any resulting patents on such inventions
          or technology to make, have made, use, sell, import, and sublicense
          products to the extent covered by such patents, but only for TCCC
          and the Coca-Cola system and only in the Beverage Field. This
          license shall not be construed as a license to Medis-El's solely
          made inventions or technology. Furthermore, for

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          such jointly-made inventions or technology, the parties will meet to
          determine a royalty to TCCC for sales by or licensed by Medis-El,
          of any products covered by such resulting patents. Such royalty is
          to be in the same proportion to the total royalty received by
          Medis-El on the product as the relative contribution of the jointly-
          made invention is to other royalty-bearing inventions in the product.

          2.2.4  ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS

          Medis-El will take reasonable efforts to obtain, maintain, and
          enforce intellectual property rights covering the stirling cycle
          engine developed hereunder.

     2.3  EXCLUSIVITY AND CONTINUING RIGHTS

          2.3.1  EXCLUSIVITY

          Medis-El will not make, have made, use or sell, or license others
          to do the same, directly or indirectly, any stirling cycle engine
          for use in connection with the Beverage Field, except for and to
          TCCC and its designees (as designated by TCCC in writing), subject
          to the conditions below. The "Beverage Field" includes all uses in
          connection with the marketing, selling, presentation, or
          distribution of beverages, including, without limitation, uses in
          vending machines, coolers, and fountain dispensing equipment,
          (post-mix and pre-mix), including for commercial, office, and home
          use, but not including refrigerators (which does not include
          fountain dispensers) for home or office refrigeration not intended
          for the sale of beverages.

          The exclusivity of the foregoing paragraph applies (1) during the
          carrying out of the development plan, and (2) then, if TCCC funds,
          in its sole discretion, $500,000.00 worth of manufacturing tooling
          for the stirling cycle engine for use in the Beverage Field (to be
          covered by the attached Bailment Agreement and subject to a
          recoupment fee for TCCC to be added to the cost of units made on
          the tooling, regardless of whether exclusivity is continued), for
          the following periods:

          Two (2) years after first commercialization (not field testing) of
          the stirling cycle engine in the Beverage Field; and

          Yearly thereafter, for a total of 10 years (years three through
          ten) after first commercialization, if TCCC or its designees
          purchase at least the following amounts (these amounts are
          conditions of exclusivity, not commitments to purchase):

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          Year 3      50,000
          Year 4      100,000
          Year 5      100,000
          Year 6      200,000
          Year 7      200,000
          Year 8      300,000
          Year 9      500,000
          Year 10     500,000

          2.3.2  TCCC'S CONTINUING RIGHTS TO STIRLING TECHNOLOGY

          In no event will Medis-El grant another a license or any rights that
          restrict or disadvantage TCCC's and its designees' ability to
          purchase Medis-El's stirling cycle engines for the Beverage Field,
          and TCCC and its designees will always have the right to purchase
          Medis-El's stirling cycle engines for the Beverage Field. While
          exclusivity is in effect, TCCC and its designees shall have the
          first call on manufacturing capacity. Furthermore, if TCCC's
          exclusivity lapses, TCCC and its designees will have, through
          year 10, the first call on manufacturing capacity for uses in the
          Beverage Field.

    2.4.  THIRD-PARTY MANUFACTURERS AND DUE DILIGENCE

          2.4.1  THIRD-PARTY MANUFACTURERS

          If TCCC chooses to move forward with tooling funding as provided in
          Section 2.3 above and advises Medis-El, Medis-El will grant
          manufacturing licenses at terms acceptable to Medis-El in its sole
          discretion, and, once Medis-El reaches terms with a manufacturer at
          the terms as provided below, TCCC will then release such funding. If
          Medis-El is not able to reach terms with a third party
          manufacturer, TCCC will not fund tooling in the event that TCCC had
          decided to fund tooling. Medis-El will ensure that any third-party
          licenses are limited in accordance with TCCCs exclusive license
          rights as provided herein. Furthermore, Medis-El will require that
          third-party manufacturers sell to TCCC and its designees, and that
          such sales will be on terms and conditions, including price and
          delivery scheduling, that are at least as favorable (from the
          standpoint of the buyer) as the third-party manufacturer offers to
          others. Furthermore, Medis-El and any third party manufacturer will
          provide commercial warranties on the products, including warranties
          of quality and against intellectual property infringement claims,
          and indemnification against third party claims of personal injury
          and intellectual property infringement.

          Medis-El will provide, to any third-party manufacturers, product
          designs, manufacturing plans, and ongoing engineering support for
          the product and

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          its manufacture, as well as appropriate de-bugging support of
          production. Furthermore, Medis-El will provide engineering support
          for on-going improvement to the product design and its manufacture,
          throughout the life of the product.

          Medis-El will require that any manufacturers implement
          state-of-the-art quality control management processes.

          2.4.2  DUE DILIGENCE

          Medis-El will use good faith efforts to have the stirling cycle
          engine commercialized in products suitable for the Beverage Field,
          as soon as reasonably possible, and throughout the world.

     2.5  WARRANTY OF RIGHT TO GRANT RIGHTS

     Medis-El warrants to TCCC that Medis-El has the full right and power to
     grant the rights referred to in this Agreement and to enter into this
     Agreement.

     2.6  WARRANTY OF NON-INFRINGEMENT

     Medis-El warrants that the stirling cycle engine developed hereunder will
     not infringe any patent, copyright, or other proprietary right of any
     other person.

3.   COMPENSATION

TCCC shall pay Medis'Inc. (designated by Medis-El as its agent for receipt of
funds) $100,000.00 within 30 days of the signing of this Agreement for the
rights granted in Section 1 above.

TCCC shall pay Medis'Inc. (designated by Medis-El as its agent for receipt of
funds) $100,000.00 within 30 days of the signing of this Agreement to assist
in the development of the stirling cycle engine as provided in Section 2
above. During the carrying out of the development plan, TCCC will consider
paying an additional $50,000.00 to assist in development, to be paid in
TCCC's discretion, depending upon the progress of the project.

Neither party will be liable hereunder to the other for the party's indirect,
special, or consequential damages.

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4.   SECRECY

     4.1.  SECRECY PROVISION

           During the term of this Agreement, Medis-El and TCCC may exchange
           information of a confidential or proprietary nature that the
           disclosing party does not want published or disclosed to third
           parties. Medis-El and TCCC agree that all confidential information
           which has been disclosed in writing by one party and received by
           the other party, or which has been confidentially disclosed orally
           shall be held in confidence for a term of five (5) years from the
           date of the disclosure, and shall not be disclosed to a third party
           without the prior written consent of the disclosing party.

     4.2.  EXCEPTIONS

           Neither party shall be obligated to maintain in confidence:

           4.2.1  Information which is, or subsequently may become within
                  the knowledge of the public generally, through no fault of
                  the receiving party;

           4.2.2  Information which the receiving party can show was
                  previously known to it at the time of receipt;

           4.2.3  Information which may subsequently be obtained lawfully from
                  a third party who has obtained the information through no
                  fault of the receiving party; or

           4.2.4  Information which the receiving party can establish was
                  subsequently developed by the receiving party independently
                  of the disclosure.

5.   PUBLICITY

     Medis-El shall not publish, reveal, or use, without TCCC's prior written
     approval, this Agreement, its terms, or the fact that it has been
     entered, or any advertising, sales, promotion or publicity material
     relating to this Agreement, services, equipment, materials, products,
     or reports furnished by Medis-El wherein in any of the foregoing the
     names of TCCC, its subsidiaries, affiliates or authorized bottlers are
     mentioned or their identity implied.

6.   PATENT AND TRADEMARK RIGHTS

     Other than as expressly provided in this Agreement, nothing contained
     nor resulting from this Agreement shall give either party any rights in
     the patents or trademarks of the other party.

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7.   TERMINATION AND SURVIVAL

     7.1.  TERMINATION FOR BREACH

           This Agreement may be terminated at any time by either party in
           the event that the other party has breached this Agreement, by
           giving the breaching party thirty (30) days notice in writing of
           the intention to terminate and the reasons therefor. Should the
           breaching party cure such breach and perform its obligation during
           the notice period, the Agreement shall continue in full force and
           effect.

     7.2   SURVIVAL

     Sections 2.2, 2.3.2, 2.4, 2.5, 2.6, 4, 5, 6, 9, 10, 11, 12, and 13 will
     survive the expiration or earlier termination of this Agreement.

8.   NOTICE

     All notice and correspondence shall be sent by either party to the other
     in all matters dealing with this Agreement to the following addresses:

     If to TCCC:

                       The Coca-Cola Company
                       One Coca-Cola Plaza
                       Atlanta, Georgia 30313

                       Attention: Director, Engineering Development Function

     with a copy by facsimile to the Senior Patent and Technology Counsel of
     The Coca-Cola Company, at (404) 676-8414.

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     If to Medis-El, to:

                       Medis El LTD.
                       805 Third Avenue
                       New York, NY 10022

                       Attention: Robert K. Lifton, Chairman of the Board

     with a copy by facsimile to the project manager at Medis-El LTD., in
     Jerusalem, at 972-5870454.

     or any other address provided written notice is given to the other party.

9.   INDEPENDENT CONTRACTOR

Medis-El shall be deemed to be an independent contractor, and neither TCCC
nor Medis-El shall have the authority to contract on the other's behalf.

10.  ENTIRE AGREEMENT

The Agreement constitutes the entire agreement between TCCC and Medis-El.
This Agreement supersedes all prior oral or written agreements between TCCC
and Medis-El. This Agreement shall be binding upon and inure to the benefit
of Medis-El and TCCC and their respective successors and permitted assigns.

11.  APPLICABLE LAW

This Agreement shall be construed in accordance with the laws of the State of
Georgia and appliable laws of the United States, regardless of any other laws
chosen by choice-of-law rules. Any disputes arising under this Agreement
shall be brought exclusively in the federal or state courts located in the
State of Georgia, and the parties consent to the jurisdiction of such courts.

12.  AMENDMENT

No amendment to the Agreement shall be binding unless it is in writing and
signed by both parties.

13.  ASSIGNMENT

Neither party shall assign or transfer this Agreement or any interest herein
without prior written consent of the other party, and any unauthorized
assignment shall be null and void, except that TCCC may assign this Agreement
to a wholly owned subsidiary after notice to Medis-El.

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed in
duplicate effective as of the date first above written.

THE COCA-COLA COMPANY                        MEDIS-EL LTD.

By:     [Illegible]                          By:  /s/ Robert K. Lifton
   ---------------------------                   ---------------------------
Name:   [Illegible]                          Name:  Robert K. Lifton
     -------------------------                    --------------------------
Title:  [Illegible]                          Title: Chairman of the Board
     -------------------------                    --------------------------

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                                  Exhibit A

                              DEVELOPMENT PLAN

This Development Plan is incorporated by reference into the Agreement to
which it is attached. All dates below are target dates, it being understood
that actual completion may be before or after the targets. Medis-El will,
however, use its best efforts to perform the development to reach the target
dates.

PHASE I - DEVELOPMENT OF 100 WATT PROTOTYPES

Starting at the execution of the Agreement, Medis-El will develop two 65 watt
prototype stirling cycle engine prototypes, to be completed by May 1999. TCCC
will own these physical units (but not any Medis-El intellectual property in
the units), and will analyze them in its, or a third-party laboratory. The
analysis will measure the units against various criteria to be established
between the parties, relating to performance, cost (manufacturing and total)
scalability, and reliability, among others. The parties agree to share
information on such criteria.

During the same period, TCCC and Medis-El will work together to determine the
size of the units that will be needed for TCCC's applications in coolers and
vending machines, and Medis-El will begin development of these larger units.

PHASE II - DEVELOPMENT OF LARGER UNITS

Once prototypes of Phase I meet the requirements of TCCC and Medis-El, then
Medis-El will complete development of the larger units suitable for TCCC's
applications in coolers and vending machines. It is estimated that it will
take approximately three months to make prototypes of the larger units.
Medis-El will provide TCCC with at least four prototypes of the larger units.

During this same period, Medis-El and TCCC will share information on
projected performance, manufacturing and total costs, scalability, and
reliability, and Medis-El will develop manufacturing processes for the
larger units.

PHASE III - TESTING OF THE LARGER UNITS

Once prototypes are available that are substantially the same as the
projected commercial units, TCCC will test the larger units for up to 7
months to evaluate their performance and reliability, and share the results
with Medis-El. At the end of this testing and evaluation of the data from the
testing, TCCC will make a decision, in its sole discretion, on whether to fund
tooling as provided in the Agreement, to obtain exclusivity in the Beverage
Field. Before TCCC makes such a decision, Medis-El will commit to a
not-to-exceed price for the stirling cycle engines, to facilitate TCCC's
decision.AMENDMENT NUMBER SIX TO
                              AMENDED AND RESTATED
                           LOAN AND SECURITY AGREEMENT

                  This  AMENDMENT  NUMBER SIX TO AMENDED AND  RESTATED  LOAN AND
SECURITY  AGREEMENT (this  "Amendment") is entered into as of December 28, 1999,
by  and  between  Foothill  Capital   Corporation,   a  California   corporation
("Foothill"),  on the  one  hand,  and  National-Standard  Company,  an  Indiana
corporation ("Borrower"), with reference to the following facts:

         A.       Foothill  and  Borrower  heretofore  have  entered  into  that
                  certain  Amended and  Restated  Loan and  Security  Agreement,
                  dated as of  September  17,  1997,  as amended by that certain
                  Amendment Number One to Amended and Restated Loan and Security
                  Agreement,  dated as of June 30, 1998, that certain  Amendment
                  Number  Two  to  Amended  and   Restated   Loan  and  Security
                  Agreement,  dated  as of  September  30,  1998,  that  certain
                  Amendment  Number  Three  to  Amended  and  Restated  Loan and
                  Security  Agreement,  dated  as of  February  19,  1999,  that
                  certain Amendment Number Four to Amended and Restated Loan and
                  Security  Agreement,  dated as of  [March 8,  1999],  and that
                  certain Amendment Number Five to Loan and Security  Agreement,
                  dated as of July 1,  1999  (as so  modified  and as  otherwise
                  heretofore  modified or  supplemented  from time to time,  the
                  "Agreement");

         B.       Borrower has requested Foothill to amend the Agreement, as set
                  forth in this Amendment;

         C.       Foothill is willing to so amend the  Agreement  in  accordance
                  with the terms and conditions hereof; and

         D.       Unless the context requires  otherwise,  all capitalized terms
                  used herein and not  defined  herein  shall have the  meanings
                  ascribed to them in the Agreement, as amended hereby.

                  NOW, THEREFORE, in consideration of the above recitals and the
mutual promises contained herein, Foothill and Borrower hereby agree as follows:

         1.  Amendments to the Agreement.

                  (a) Section 1.1 of the  Agreement  hereby is amended by adding
the following new defined terms in alphabetical order:

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                           "Applicable  Percentage"  means:  (a) from the period
         commencing on the Sixth Amendment  Effective Date through and including
         January 31, 2000,  50%; (b) from the period  commencing  on February 1,
         2000 through and including  February 28, 2000, 49%; (c) from the period
         commencing on March 1, 2000 through and including  March 31, 2000, 48%;
         (d) from the period  commencing  on April 1, 2000 through and including
         April 30,  2000,  47%;  (e) from the period  commencing  on May 1, 2000
         through and including May 31, 2000, 46%; (f) from the period commencing
         on June 1, 2000 through and including June 30, 2000,  44%; (g) from the
         period  commencing on July 1, 2000 though and including  July 31, 2000,
         42%;  and (h) from the period  commencing  on August 1, 2000 and at all
         times thereafter, 40%.

                           "Lowest  Adjusted  Base Rate" means a rate:  (a) with
         respect  to all  Obligations,  other  than  (i)  undrawn  L/Cs  and L/C
         Guarantees,  and (ii) the Obligations  evidenced by the  Equipment/Real
         Property  Term  Note  and the New  Equipment  Term  Note,  equal to the
         Reference  Rate; and (b) with respect to the  Obligations  evidenced by
         the Equipment/Real  Property Term Note and the New Equipment Term Note,
         equal to 0.25 percentage points above the Reference Rate.

                           "Sixth Amendment" means that certain Amendment Number
         Six to Amended and Restated  Loan and Security  Agreement,  dated as of
         December 28, 1999, between Foothill and Borrower.

                           "Sixth  Amendment  Effective Date" means the date, if
         ever,  that all of the  conditions  set forth in Section 4 of the Sixth
         Amendment  shall  be  satisfied  (or  waived  by  Foothill  in its sole
         discretion).

                           "WIP   Availability"   means,   as  of  any  date  of
         determination,  an amount equal to the result of: (i) $2,500,000; minus
         (ii) the aggregate amount of revolver advances made pursuant to Section
         2.1(a)(ii)(A)(1)(z).

                  (b) Section 1.1 of the Agreement  hereby is amended further by
deleting the table appearing in the definition of "Adjusted Base Rate" appearing
in said Section in its entirety and  inserting  the  following new table in lieu
thereof:

<TABLE>
<S>                                                 <C>
=================================================== ========================================================================
If the Interest Coverage Ratio for the four (4)     Then, effective during the period commencing 45 days after the end of
fiscal quarter period then ended is:                the Measurement Period then ended and ending 45 days after the end of
                                                    the next Measurement Period, the new Adjusted Base Rate shall equal:
=================================================== ========================================================================
from and after June 1, 2000, greater than           the Lowest Adjusted Base Rate
4.80:1.00;
--------------------------------------------------- ------------------------------------------------------------------------

                                       2
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less than or equal to 4.80:1:00, and greater than   the Minimum Adjusted Base Rate.
4.00:1.00;
--------------------------------------------------- ------------------------------------------------------------------------
less than or equal to 4.00:1.00, and greater than   the Base Rate.
or equal to 2.50:1.00;
--------------------------------------------------- ------------------------------------------------------------------------
less than 2.50:1.00;                                the Maximum Adjusted Base Rate.
=================================================== ========================================================================

</TABLE>

                  (c) The  following  defined  terms set forth in Section 1.1 of
the Agreement hereby are amended and restated in their entirety as follows:

                  "Eligible  Accounts"  means  Eligible  Domestic  Accounts  and
         Eligible UK Foreign Accounts.

                  "New Equipment Term Loan Commitment" means $5,000,000.

                  "Maturity Date" means December 28, 2002.

                  (d) Section 1.1 of the Agreement hereby is amended by deleting
therefrom  the  following  defined  terms:   Eligible  Canadian  Finished  Goods
Inventory;  Eligible Foreign  Accounts;  Eligible Canadian  Inventory;  Eligible
Canadian Raw Material Inventory; and Eligible Work-In-Process Inventory.

                  (e)  The  second  sentence  of  Section  2.1(a)  of  the  Loan
Agreement hereby is amended and restated in its entirety as follows:

                  For purposes of this  Agreement,  "Borrowing  Base", as of any
         date of determination, shall mean:

                           "(i) an amount  equal to the sum of: (A)  eighty-five
                  percent (85%) of the amount of Eligible Domestic Accounts; and
                  (B) the UK Borrowing Base Component; plus

                           (ii) an amount equal to the least of:

                                    (A) the sum of:

                                            (1) the sum of:

                                                (x) 60% of the amount of
                                                Eligible Domestic Finished Goods
                                                Inventory,

                                                (y) the  Applicable  Percentage
                                                of the  amount of  Eligible
                                                Domestic Raw Material Inventory,
                                                and

                                      3

<PAGE>

                                                (z) the lesser of:

                                                    (I) the Applicable
                                                    Percentage  of the amount of
                                                    Eligible Domestic Work-in-
                                                    Process Inventory; and

                                                    (II) WIP Availability; and

                                    (B) the  amount of  credit  availability
                  created  by Section 2.1(a)(i) above; and

                                    (C) $15,000,000; plus"

                  (f) Section 2.1(b) of the Loan Agreement hereby is amended and
restated in its entirety as follows:

                  "(b)  Anything  to  the  contrary  in  subsection   (a)  above
         notwithstanding,  Foothill  may reduce  its  advance  rates  based upon
         Eligible Domestic Accounts, Eligible Domestic Finished Goods Inventory,
         Eligible Domestic Raw Material Inventory,  or Eligible  Work-In-Process
         Inventory  without  declaring an Event of Default if it determines,  in
         its reasonable  discretion,  that there is a material impairment of the
         prospect of  repayment  of all or any portion of the  Obligations  or a
         material  impairment  of the value or priority of  Foothill's  security
         interests in the Collateral."

                  (g) Section 2.3(a) of the Loan Agreement hereby is amended and
restated in its entirety as follows:

                  "(a) Subject to the terms and  conditions  of this  Agreement,
         Foothill:  (i) agreed to make the "Equipment  Term Loan" (as defined in
         the Existing  Loan  Agreement)  to Borrower on the Old First  Amendment
         Closing Date, the "Real Property Term Loan" (as defined in the Existing
         Loan  Agreement) to Borrower on the Original  Closing Date,  and a term
         loan to Borrower on the  Closing  Date;  and (ii) has agreed to make an
         additional term loan to Borrower on the Sixth Amendment Effective Date;
         in   the   original   aggregate   principal   amount   of   $14,200,000
         (collectively,   the  "Equipment/Real   Property  Term  Loan"),  to  be
         evidenced by and repayable in accordance  with the terms and conditions
         of a consolidated, amended, and restated renewal promissory note in the
         form of Exhibit E-1 (the "Equipment/Real Property Term Note"), dated as
         of Sixth  Amendment  Effective  Date,  executed by Borrower in favor of
         Foothill.  All amounts  evidenced by the  Equipment/Real  Property Term
         Note shall constitute  Obligations and shall be secured by the security
         interests  and liens  granted by  Borrower  to  Foothill  in and to the
         Collateral and Real  Property.  The  Equipment/Real  Property Term Loan
         shall be repaid in accordance with Section 2.3(b)."

                                       4

<PAGE>

                  (h) The last  sentence  of  Section  2.3(c)  of the  Agreement
hereby is amended and restated in its entirety as follows:

                  "Anything  contained  in this  Section  2.3(c) to the contrary
         notwithstanding,   Foothill  shall  have  no  obligation  to  make  New
         Equipment  Term  Loans  hereunder  to the extent  they would  cause the
         outstanding  New Equipment  Term Loans to exceed the New Equipment Term
         Loan Commitment."

                  (i)  Section  3.6 of  the  Agreement  hereby  is  amended  and
restated in its entirety as follows:

                           "3.6 EARLY TERMINATION BY BORROWER.  Borrower has the
         option,  at any time upon 90 days prior written notice to Foothill,  to
         terminate this Agreement by paying to Foothill, in cash the Obligations
         (including  an  amount  equal  to the  full  amount  of the L/Cs or L/C
         Guarantees),  together with a premium (the "Early Termination Premium")
         equal to: (a) if such payment is made on or prior to December 15, 1999,
         2.0% of the  Maximum  Amount;  (b) if such  payment is made  during the
         period commencing on December 15, 1999 and ending on December 15, 2001,
         1.0% of the  Maximum  Amount;  (c) if such  payment is made  during the
         period  commencing  on December  16, 2001 and ending on June 15,  2002,
         0.50% of the Maximum  Amount;  (d) if such payment is made  thereafter,
         zero."

                  (j)  Exhibit  E-1 to  the  Agreement  hereby  is  amended  and
restated in its entirety in the form of Exhibit E-1 attached hereto.

                  (k)  Exhibit  L-1 to  the  Agreement  hereby  is  amended  and
restated  in its  entirety  in the  form of  Exhibit  L-1  attached  hereto.

         2. Agreements.  On the Sixth Amendment  Effective Date, Borrower hereby
requests and Foothill  hereby agrees to apply  $3,000,000 of the proceeds of the
Equipment/Real  Property Term Loan to reduce the aggregate  balance of revolving
advances then outstanding as of such date.

         3.  Representations  and  Warranties.  Borrower  hereby  represents and
warrants to Foothill that (a) the execution,  delivery,  and performance of this
Amendment and of the  Agreement,  as amended by this  Amendment,  are within its
corporate powers,  have been duly authorized by all necessary  corporate action,
and are not in  contravention  of any law,  rule, or  regulation,  or any order,
judgment,  decree,  writ,  injunction,  or award of any  arbitrator,  court,  or
governmental  authority,  or of the terms of its  charter or  bylaws,  or of any
contract or undertaking to which it is a party or by which any of its properties
may be bound or affected,  and (b) this Amendment and the Agreement,  as amended
by this Amendment,  constitute  Borrower's legal, valid, and binding obligation,
enforceable against Borrower in accordance with its terms.

                                       5

<PAGE>

         4. Conditions  Precedent to Amendment.  The satisfaction of each of the
following,  unless waived or deferred by Foothill in its sole discretion,  shall
constitute conditions precedent to the effectiveness of this Amendment:

                  (a) Foothill shall have received the reaffirmation and consent
of Guarantor  attached  hereto as Exhibit A, duly executed and in full force and
effect.

                  (b) Foothill shall have received the  Equipment/Real  Property
Term Note, duly executed and in full force and effect

                  (c) Foothill  shall have received an amendment fee of $30,000,
in cash or by wire transfer of immediately available funds.

                  (d)  Foothill  shall  have  received  a  certificate  from the
Secretary of Borrower  attesting to the  incumbency and signatures of authorized
officers of Borrower and to the  resolutions  of  Borrower's  Board of Directors
authorizing  its  execution  and delivery of this  Amendment  and the other Loan
Documents  to which it is a party and  contemplated  in this  Amendment  and the
performance of this Amendment,  the Agreement as amended by this Amendment,  and
such other Loan  Documents,  and  authorizing  specific  officers of Borrower to
execute and deliver the same;

                  (e) Foothill  shall have  received  all  required  consents of
Foothill's  participants in the Obligations to Foothill's  execution,  delivery,
and performance of this Amendment, in each case duly executed, in full force and
effect, and in form and substance satisfactory to Foothill;

                  (f) The representations and warranties in this Amendment,  the
Agreement as amended by this  Amendment,  and the other Loan Documents  shall be
true and correct in all respects on and as of the date hereof, as though made on
such date (except to the extent that such  representations and warranties relate
solely to an earlier date);

                  (g) No Event of  Default  or event  which  with the  giving of
notice or  passage  of time  would  constitute  an Event of  Default  shall have
occurred  and be  continuing  on the date  hereof,  nor  shall  result  from the
consummation of the transactions contemplated herein;

                  (h) No injunction,  writ, restraining order, or other order of
any  nature  prohibiting,  directly  or  indirectly,  the  consummation  of  the
transactions  contemplated  herein shall have been issued and remain in force by
any  governmental  authority  against  Borrower,   Foothill,  or  any  of  their
Affiliates; and

                  (i) All other  documents and legal matters in connection  with
the  transactions  contemplated  by this Amendment  shall have been delivered or
executed or recorded and shall be in form and substance satisfactory to Foothill
and its counsel.

                                       6
<PAGE>

         5. Effect on Agreement.  The Agreement, as amended hereby, shall be and
remain in full  force and effect in  accordance  with its  respective  terms and
hereby is ratified and confirmed in all respects.  The execution,  delivery, and
performance  of this  Amendment  shall not operate as a waiver of or,  except as
expressly set forth herein, as an amendment,  of any right,  power, or remedy of
Foothill under the Agreement, as in effect prior to the date hereof.

         6. Miscellaneous.

                  (a) Upon the  effectiveness of this Amendment,  each reference
in the Agreement to "this Agreement",  "hereunder",  "herein", "hereof" or words
of like import  referring to the Agreement shall mean and refer to the Agreement
as amended by this Amendment.

                  (b) Upon the  effectiveness of this Amendment,  each reference
in  the  Loan  Documents  to  the  "Loan  Agreement",  "thereunder",  "therein",
"thereof"  or words of like import  referring  to the  Agreement  shall mean and
refer to the Agreement as amended by this Amendment.

                  (c) Upon the  effectiveness of this Amendment,  each reference
in the Loan  Documents  to  Exhibit  L-1  shall  mean and refer to  Exhibit  L-1
attached hereto.

                  (d) Upon the  effectiveness of this Amendment,  each reference
in the Loan  Documents  to  Exhibit  E-1  shall  mean and refer to  Exhibit  E-1
attached hereto.

                  (e) This  Amendment  shall be  governed  by and  construed  in
accordance with the laws of the State of California.

                  (f)  This   Amendment   may  be  executed  in  any  number  of
counterparts,  all of which taken  together  shall  constitute  one and the same
instrument  and any of the parties  hereto may execute this Amendment by signing
any such counterpart.  Delivery of an executed  counterpart of this Amendment by
telefacsimile  shall be equally as effective as delivery of an original executed
counterpart of this Amendment.  Any party delivering an executed  counterpart of
this  Amendment  by  telefacsimile  also  shall  deliver  an  original  executed
counterpart  of this  Amendment but the failure to deliver an original  executed
counterpart shall not affect the validity, enforceability, and binding effect of
this Amendment.

                  [remainder of page intentionally left blank]

                                       7
<PAGE>

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

                                           FOOTHILL CAPITAL CORPORATION,
                                           a California corporation

                                           By____________________________

                                           Title:________________________

                                           NATIONAL-STANDARD COMPANY, an Indiana
                                           corporation

                                           By____________________________

                                           Title:________________________

                                      S-1
<PAGE>

                                    EXHIBIT A
                                    ---------

                            Reaffirmation and Consent

                  All  capitalized  terms used herein but not otherwise  defined
herein shall have the meanings ascribed to them in that certain Amendment Number
Six to Amended and Restated  Loan and Security  Agreement,  dated as of December
28, 1999 (the  "Amendment").  The  undersigned  hereby jointly and severally (a)
represent and warrant to Foothill that the execution,  delivery, and performance
of this  Reaffirmation  and  Consent  are  within  each of  their  corporate  or
organizational  powers,  have been duly authorized by all necessary corporate or
other  organizational  action, and are not in contravention of any law, rule, or
regulation,  or any order, judgment,  decree, writ, injunction,  or award of any
arbitrator,  court, or governmental authority, or of the terms of its charter or
bylaws,  or of any contract or undertaking to which either of them is a party or
by which any of their  properties may be bound or affected;  (b) consents to the
amendment of the Agreement by the Amendment;  (c) acknowledges and reaffirms its
obligations  owing to Foothill  under its  respective  guaranty  and each of the
other  Loan  Documents  to which it is party;  and (d)  agrees  that each of the
guaranties  and the other Loan  Documents to which they are parties is and shall
remain in full force and effect.  Although the undersigned have been informed of
the  matters set forth  herein and have  acknowledged  and agreed to same,  they
understand  that  Foothill has no obligation to inform it of such matters in the
future or to seek its  acknowledgement  or agreement to future  amendments,  and
nothing herein shall create such a duty.

                                           NATIONAL-STANDARD COMPANY OF CANADA,
                                           LIMITED, a Canadian corporation

                                           By ___________________________
                                           Title:________________________

                                           NATIONAL-STANDARD (PETERLEE) LIMITED,
                                           a company organized under the
                                           laws of England

                                           By ___________________________
                                           Title:________________________

                                      A-1
<PAGE>

                                   EXHIBIT L-1
                                   -----------

                 LIBOR SUPPLEMENT TO LOAN AND SECURITY AGREEMENT

                  This LIBOR  Supplement  ("Supplement")  is a supplement to the
Amended and  Restated  Loan and  Security  Agreement  between  National-Standard
Company,  an Indiana  corporation  ("Borrower") and Foothill Capital Corporation
("Foothill"), dated as of September 17, 1997 (as amended, restated, modified, or
supplemented  from  time  to  time  (including  as  of  the  date  hereof),  the
"Agreement").  This Supplement is: (a) hereby  incorporated  into the Agreement;
(b)  made a part  thereof;  and (c)  subject  to the  other  terms,  conditions,
covenants and warranties thereof.  All terms (including  capitalized terms) used
herein shall have the meanings  ascribed to them  respectively in the Agreement,
unless otherwise defined in this Supplement.

                  1.       Definitions.  The   following  terms  shall  have the
meanings set forth below:

                  "Adjusted   Net  LIBOR  Rate"   means,   as  of  any  date  of
determination,  the  Regular  Adjusted  Net  LIBOR  Rate  (or,  after  the first
adjustment  to the  Regular  Adjusted  Net LIBOR  Rate as set forth  below,  the
Adjusted  Net  LIBOR  Rate)  in  effect   immediately  prior  to  such  date  of
determination,  as adjusted  pursuant to the table set forth below  according to
the Interest  Coverage  Ratio of Borrower for the four (4) fiscal quarter period
then ended:
<TABLE>
<S>                                                  <C>
==============================================================================================================================
If the Interest Coverage Ratio for the four (4)      Then,  effective  during the period  commencing 45 days after the end of
fiscal quarter period then ended is:                 the  Measurement  Period  then ended and ending 45 days after the end of
                                                     the next  Measurement  Period,  the new  Adjusted  Net LIBOR  Rate shall
                                                     equal:
===================================================  =========================================================================
from and after June 1, 2000, greater than            the Lowest Adjusted Net LIBOR Rate
4.80:1.00;
---------------------------------------------------  -------------------------------------------------------------------------

                                       3

<PAGE>

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

less than or equal to 4.80:1.00, and greater than    the Minimum Adjusted Net LIBOR Rate.
4.00:1.00;
---------------------------------------------------  -------------------------------------------------------------------------
less than or equal to  4.00:1.00, and greater than   the then extant Adjusted Net LIBOR Rate.
or equal to 2.50:1.00;
---------------------------------------------------  -------------------------------------------------------------------------
less than 2.50:1.00;                                  the Maximum Adjusted Net LIBOR Rate.
==============================================================================================================================

</TABLE>

                  "Business  Day"  means a  day on  which  banks  in  California
are  open  for the  transaction  of business.

                  "Business  Day in London"  means a day which is a Business Day
and a day on which  banks in London,  England  are open for the  transaction  of
banking business.

                  "Funding Losses" has  the  meaning set forth in   Section 3(b)
hereof.

                  "Interest  Period" means,  with respect to that portion of the
Loans  bearing  interest at the  Adjusted  Net LIBOR Rate, a period of one month
duration;  provided,  however,  that: (a) if any Interest Period would otherwise
end on a day which shall not be a Business Day in London,  such Interest  Period
shall be  extended to the next  succeeding  Business  Day in London,  subject to
clauses  (c)-(e)  below;  (b) interest shall accrue from and including the first
day of each  Interest  Period to, but  excluding,  the day on which any Interest
Period expires; (c) any Interest Period which would otherwise end on a day which
is not a  Business  Day in  London  shall be  extended  to the  next  succeeding
Business  Day in London  unless  such  Business  Day in London  falls in another
calendar  month,  in which case such Interest Period shall on the next preceding
Business Day in London;  (d) with respect to an Interest  Period which begins on
the last  Business  Day in  London of a  calendar  month ( or on a day for which
there is no  numerically  corresponding  day in the calendar month at the end of
such Interest Period), the Interest Period shall end on the last Business Day in
London of the  calendar  month  which is one  month  after the date on which the
Interest  Period began, as applicable and (e) Borrower may not elect an Interest
Period which will end after the Maturity Date.

                  "LIBOR Deadline" has the  meaning  set forth  in  Section 3(a)
hereof.

                  "LIBOR Option" has the meaning set forth in Section 2 hereof.

                  "Loan" or "Loans" means Borrower's advances or term loans made
by Foothill in Dollar denominations to Borrower under Sections 2.1 or 2.3 of the
Agreement.

                  "Lowest  Adjusted  Net  LIBOR  Rate"  means a rate:  (a)  with
respect to all Obligations  other than (i) undrawn L/Cs and L/C Guarantees,  and
(ii) the Obligations evidenced by the Equipment/Real  Property Term Note and the
New  Equipment  Term

                                        4

<PAGE>

Note,  equal to 2.0  percentage  points  above the Net LIBOR Rate;  and (b) with
respect to the Obligations  evidenced by the  Equipment/Real  Property Term Note
and the New Equipment Term Note,  equal to 2.25 percentage  points above the Net
LIBOR Rate.

                  "Maturity Date" means, at the time of selection of an Interest
Period, the last day of the then current term of the Agreement.

                  "Maximum  Adjusted  Net  LIBOR  Rate"  means a rate:  (a) with
respect to all Obligations  other than (i) undrawn L/Cs and L/C Guarantees,  and
(ii) the Obligations evidenced by the Equipment/Real  Property Term Note and the
New Equipment  Term Note,  equal to 2.75  percentage  points above the Net LIBOR
Rate; and (b) with respect to the  Obligations  evidenced by the  Equipment/Real
Property Term Note and the New Equipment Term Note, 3.00 percentage points above
the Net LIBOR Rate.

                  "Minimum  Adjusted  Net  LIBOR  Rate"  means a rate:  (a) with
respect to all Obligations  other than (i) undrawn L/Cs and L/C Guarantees,  and
(ii) the Obligations evidenced by the Equipment/Real  Property Term Note and the
New Equipment  Term Note,  equal to 2.25  percentage  points above the Net LIBOR
Rate; and (b) with respect to the  Obligations  evidenced by the  Equipment/Real
Property Term Note and the New  Equipment  Term Note,  equal to 2.50  percentage
points above the Net LIBOR Rate.

                  "Net LIBOR Rate" means, for any Interest Period,  the rate per
annum (rounded upwards,  if necessary,  the next 1/16 of 1%) determined pursuant
to the following formula:

                  Net                        =               LIBOR Rate
                  LIBOR Rate                           1 - Reserve Percentage

                  For purposes  hereof,  "LIBOR Rate" means the one month London
Interbank  Offered Rate set in London two (2)  Business  Days in London prior to
the  commencement  of each  Interest  Period  as  published  in The Wall  Street
Journal.

                  "Regular  Adjusted  Net  LIBOR  Rate"  means a rate:  (a) with
respect to all Obligations  other than (i) undrawn L/Cs and L/C Guarantees,  and
(iii) the Obligations evidenced by the Equipment/Real Property Term Note and the
New Equipment  Term Note,  equal to 2.50  percentage  points above the Net LIBOR
Rate; and (b) with respect to the  Obligations  evidenced by the  Equipment/Real
Property Term Note and the New  Equipment  Term Note,  equal to 2.75  percentage
points above the Net LIBOR Rate.

                  "Reserve  Percentage"  means,  on  any  day,  that  percentage
(expressed  as a decimal)  prescribed  by the Board of  Governors of the Federal
Reserve System (or any successor or any other banking authority to which federal
or state  chartered  banks are subject,  including any board or  governmental or
administrative  agency of the United States or any other  jurisdiction  to which
banks are subject),  for determining the reserve requirement  (including without
limitation any basic, supplemental,  marginal or emergency

                                       5

<PAGE>

reserves)  which is or would be applicable to deposits of United States  Dollars
in a non-United States or an international banking office of a bank used to fund
a loan  subject to an Net LIBOR Rate or any loan made with the  proceeds of such
deposit.  The Net LIBOR Rate shall be adjusted on and as of the effective day of
any change in the Reserve Percentage.

                  2.  Interest and  Interest  Payment  Dates.  In lieu of having
interest  charged at the rate set forth in Section  2.5(a)(i) of the  Agreement,
Borrower  shall have the option  (the  "LIBOR  Option")  to have  interest  on a
portion of its Loans be charged at the Adjusted Net LIBOR Rate. Interest on that
portion of the Loans bearing  interest at the Adjusted Net LIBOR Rate ("Adjusted
Net LIBOR Rate Loans") shall be payable on the last day of each month and on the
last day of each  Interest  Period and may,  at  Foothill's  option,  be charged
directly to  Borrower's  loan account  maintained  by Foothill.  Interest at the
Adjusted Net LIBOR Rate shall be calculated for each month (or portion  thereof)
based on the number of days  elapsed  and a year of three  hundred  sixty  (360)
days.  On and  after  the  date  of any  Event  of  Default  or  termination  or
non-renewal of the  Agreement,  interest on all  outstanding  Adjusted Net LIBOR
Rate Loans  shall  accrue at the rate set forth in Section  2.5(b)(i)(z)  of the
Agreement  from the date of such Event of Default or  termination or non-renewal
until the end of the Interest Period,  and all such interest accruing  hereunder
shall  thereafter be payable on demand.  Upon expiration of the Interest Period,
or earlier at Foothill's  option following an Event of Default or termination or
non-renewal  of  the  Agreement,   and  until  Borrower's  subsequent  permitted
exercise,  if any,  of the LIBOR  Option,  all Loans  shall  accrue  interest in
accordance with Section 2.5(b)(i)(y) of the Agreement. In no event shall charges
constituting  interest,  payable by Borrower under this  Supplement,  exceed the
rate  permitted  under  any  applicable  law or  regulation,  and if any part or
provision of this Supplement is in  contravention of any such law or regulation,
such part or provision shall be deemed amended to conform thereto.

                  3.       LIBOR Election.

                  (a) Borrower  may, at any time prior to an Event of Default or
termination  or  non-renewal  of the  Agreement,  exercise  the LIBOR  Option by
notifying  Foothill prior to 3:00 p.m. (Boston time) at least three (3) Business
Days in London prior to the  commencement  of the proposed  Interest Period (the
"LIBOR  Deadline").  Notice of  Borrower's  election  of the LIBOR  Option for a
permitted  portion of the Loans and an Interest Period pursuant to the Section 3
shall be made by delivery to Foothill of an LIBOR  Notice in the form of Exhibit
1 hereto via facsimile  teletransmission  received by Foothill  before the LIBOR
Deadline, or by telephonic notice received by Foothill before the LIBOR Deadline
(to be confirmed by facsimile  teletransmission  to Foothill of the LIBOR Notice
to be  received by Foothill  prior to 5:00 p.m.  (Boston  time) on the same day;
provided,  however,  that Borrower's  failure to deliver such  confirming  LIBOR
Notice shall not affect the applicability of such rate if Borrower's election is
implemented by Foothill.

                                       6

<PAGE>

                  (b) Each  LIBOR  Notice  pursuant  to this  Section 3 shall be
irrevocable  and binding on Borrower.  In connection with the Adjusted Net LIBOR
Rate Loan,  Borrower shall indemnify  Foothill against any loss, cost or expense
incurred by  Foothill  as a result of any  failure to fulfill,  on or before the
date specified in the LIBOR Notice,  the applicable  conditions set forth herein
or the termination  prior to the end of an Interest Period of the  applicability
of interest at the Adjusted Net LIBOR Rate,  as provided  hereunder,  including,
without limitation,  any loss (including loss of anticipated  profits),  cost or
expense  incurred by reason of the  liquidation or  reemployment  of deposits or
other funds acquired or committed to be acquired by Foothill or its participants
to fund the requested  Adjusted Net LIBOR Rate Loans which,  as a result of such
failure,  are not so employed on such date (such  losses,  costs,  and expenses,
collectively "Funding Losses").

                  (c)  Borrower  shall  have not more than  three  (3)  Interest
Periods in  existence at any given time.  Borrower  may only  exercise the LIBOR
Option  for  Adjusted  Net LIBOR Rate  Loans of at least  Five  Million  Dollars
($5,000,000)  and integral  multiples  of One Million  Dollars  ($1,000,000)  in
excess thereof. The maximum amount of Adjusted Net LIBOR Rate Loans at any given
time  shall not exceed  eighty  percent  (80%) of the  projected  average  daily
balance  of the Loans for the  Interest  Period in  question  as  determined  by
Foothill, based upon information furnished by Borrower, but without creating any
obligation  on  Foothill's  part to make any Loans  available  other than on the
terms and conditions set forth in the Agreement.

                  4.       Prepayments.

                  (a)  Borrower  may elect to prepay any Adjusted Net LIBOR Rate
Loans only on the last day of the applicable Interest Period,  provided, that in
the  event  of the  prepayment  of  any  such  Loans,  including  any  automatic
prepayment through the required  application by Foothill of proceeds of Accounts
and other Collateral received by Foothill,  on a date other that the last day of
an Interest Period for any reason, including,  without limitation,  acceleration
pursuant to Section  4(b) hereof or pursuant to the  Agreement,  Borrower  shall
indemnify  Foothill for Funding  Losses which may arise in connection  with such
payment.  Notwithstanding  anything to the  contrary  contained  herein,  if the
outstanding Loans are reduced below the balance of the outstanding  Adjusted Net
LIBOR Rate Loans by virtue of automatic prepayment from proceeds of Accounts and
other collateral,  then Foothill will  automatically make an advance to Borrower
so that the outstanding Loans will equal the outstanding Adjusted Net LIBOR Rate
Loans so long as  Borrower  has  sufficient  borrowing  availability  under  the
formulas set forth in the Agreement  and subject to the reserves and  applicable
sublimits thereunder.

                  (b) In the event that the  aggregate  amount  with  respect to
which the Borrower has exercised the LIBOR Option  exceeds  eighty percent (80%)
of the amount of Loans actually  outstanding  at any time,  then, in addition to
all other rights and remedies of Foothill,  Foothill may, at its option, require
that such Adjusted Net LIBOR Rate Loans cease to accrue interest at the Adjusted
Net LIBOR  Rate.  In such  event,  the  Adjusted  Net

                                       7

<PAGE>

LIBOR  Rate  Loans will bear  interest  as  provided  in  Section  2.5(a)(i)  or
2.5(b)(i)(y), as the case may be, of the Agreement, and Borrower shall indemnify
Foothill for Funding Losses which may arise in connection  with the  termination
of applicability of interest at the Adjusted Net LIBOR Rate.

                  5.       Special Provisions Applicable to Net LIBOR Rate.

                  (a)  The Net  LIBOR  Rate  may be  automatically  adjusted  by
Foothill on a prospective basis to take into account the additional or increased
cost to Foothill of maintaining any necessary  reserves for Eurodollar  deposits
or increased  costs due to change in applicable law occurring  subsequent to the
commencement of the then applicable  Interest Period,  including but not limited
to changes in tax laws  (except  changes of general  applicability  in corporate
income tax laws) and changes in the reserve requirements imposed by the Board of
Governors  of the  Federal  Reserve  System (or any  successor),  excluding  the
Reserve  Percentage,  that increase or would increase the costs of funding loans
bearing  interest at the Adjusted Net LIBOR Rate.  Foothill  shall give Borrower
notice of such a  determination  and  adjustment  and Borrower may, by notice to
Foothill:  (i) require Foothill to furnish to Borrower a statement setting forth
the basis for adjusting such Net LIBOR Rate and the method for  determining  the
amount of such adjustment;  and/or (ii) repay the Adjusted Net LIBOR Rate Loans,
or  portions  thereof,  with  respect  to which  such  adjustment  is  made,  as
appropriate.

                  (b) In the event that any change in  circumstances or any law,
regulation,  treaty or directive, or any change therein or in the interpretation
of  application  thereof,  shall  at any time  after  the  date  hereof,  in the
reasonable opinion of Foothill,  make it unlawful or impractical for Foothill to
fund or  maintain  an Adjusted  Net LIBOR Loan or to  continue  such  funding or
maintaining,  or to determine or charge interest rates at the Adjusted Net LIBOR
Rate,  Foothill shall give notice of such  circumstances to the Borrower and (i)
in the case of any Adjusted Net LIBOR Rate Loans which are outstanding, the date
specified  in  Foothill's  notice  shall  be  deemed  to be the  last day of the
Interest  Period of such  Adjusted Net LIBOR Rate Loans,  and interest  upon the
Adjusted Net LIBOR Loans then outstanding shall thereafter accrue as provided in
Section  2.5(a)(i) or  2.5(b)(i)(y),  as the case may be, of the Agreement,  and
(ii)  Foothill  shall not be  obligated  to permit  Borrower  to elect the LIBOR
Option  as to any Loans  until  Foothill  determines  that it would no longer be
unlawful or impractical to do so.

                  6. No Requirement of Matched Funding. Notwithstanding anything
to  the  contrary  contained  in  this  Supplement,  neither  Foothill  nor  any
participant is required to actually acquire United States dollar deposits on the
London  Interbank  Market to fund or otherwise  match fund any Loans as to which
interest accrues at the Adjusted Net LIBOR Rate.  Provisions of Section 4 of the
Supplement  shall apply as if Foothill and/or its  participants had match funded
any Loans as to which  interest is accruing  at the  Adjusted  Net LIBOR Rate by
acquiring  United States dollar deposits in the London Interbank Market for each
Interest  Period in the amount of the  Adjusted  Net LIBOR Rate  Loans.

                                       8

<PAGE>

Funding  Losses of Foothill  under this  Supplement  shall include the aggregate
Funding Losses of Foothill and its  participants  in the Adjusted Net LIBOR Rate
Loans.

                  IN WITNESS  WHEREOF,  this  Supplement has been executed as of
December 28, 1999.

                                    NATIONAL-STANDARD COMPANY, an Indiana
                                    corporation

                                    By________________________________

                                    Title______________________________

                                    FOOTHILL CAPITAL CORPORATION, a California
                                    corporation

                                    By________________________________

                                    Title______________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]