Exhibit 10.1

 

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November 7, 2007

 

United Industrial Corporation

AAI Corporation

124 Industry Lane

Hunt Valley, MD 21030

Attention: James H. Perry

 

Re:  Waiver Letter

 

Ladies and Gentlemen:

 

                                We refer to that certain Amended and Restated
Revolving Credit Agreement dated as of May 31, 2007 (“Credit Agreement”), by and
among AAI Corporation, a Maryland corporation (“AAI”), United Industrial
Corporation, a Delaware corporation (“UIC” and together with AAI, collectively,
the “Borrowers”), the lenders from time to time party thereto (the “Lenders”),
the other financial institutions and SunTrust Bank, in its capacity as
administrative agent for the Lenders.  Capitalized terms used herein and not
otherwise defined shall have the meanings assigned to such terms in the Credit
Agreement.

 

                                The Borrowers have informed us that Textron
Inc., a Delaware corporation (collectively, “Textron”), has agreed to acquire
all of the outstanding common stock of UIC in a tender offer (“Offer”) and to
merge subsequently Marco Acquisition Sub Inc., an indirect wholly owned
subsidiary of Textron (“Merger Sub”) with and into UIC (such merger, the
“Merger”), pursuant to an Agreement and Plan of Merger, dated as of October 7,
2007, by and among UIC, Textron and Merger Sub (the “Merger Agreement”).  We
further understand that Textron (or an affiliate of Textron) may make certain
unsecured loans to UIC in connection with the transactions contemplated in and
by the Merger Agreement (the transactions together with the loans, collectively,
the “Textron Transactions”).  We, together with the Borrowers, desire to effect
a smooth transition from the credit facility under this Credit Agreement to a
new working capital credit facility under Textron (or an affiliate of Textron).

 

                                In connection with the Textron Transactions, the
undersigned Lenders hereby waive (i) any default or Event of Default (as defined
under each of the applicable Loan Documents) under the Loan Documents which may
have occurred as a result of UIC entering into the Merger Agreement and (ii) the
provisions of the Loan Documents to permit the consummation of the Textron
Transactions, including the Offer and the Merger.  In consideration of the
foregoing, the Borrowers hereby agree (i) to a reduction of the Aggregate
Revolving Commitment Amount to $50 million effective as of the first time Merger
Sub purchases shares of UIC common stock validly tendered pursuant to the Offer
constituting at least a majority of the shares of UIC common stock then
outstanding and (ii) that (A) the Borrowers shall repay all outstanding Loans no
later than 14 days from the effective date of the Merger, and (B) the
Commitments of the Lenders shall be terminated immediately upon such payment,
and the Borrowers shall thereafter no longer be entitled to borrow, and the
Lenders shall not be required to make, any Loans.

 

                                The effectiveness of this waiver letter is
subject to the Administrative Agent’s receipt of duly executed counterparts to
this letter from each of the Borrowers and the Required Lenders.

 

                                By executing this letter, Borrowers hereby
represent and warrant that after giving effect hereto, no Default or Event of
Default has occurred and is continuing and that all of the representations and
warranties made by it in the Credit Agreement are true and correct in all
material respects.  Nothing

 

 

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herein shall be deemed to establish a course of action or a course of dealing
with respect to requests by the Borrowers for waivers or amendments of any
Default, Event of Default, covenant, term or provision of the Credit Agreement
or any other Loan Document.

 

                Except as expressly provided hereby, all of the terms and
provisions of the Credit Agreement and the other Loan Documents are and shall
remain in full force and effect.  The amendments contained herein shall not be
construed as an amendment or waiver of any other provision of the Credit
Agreement or the other Loan Documents or for any purpose except as expressly set
forth herein or a consent to any further or future action on the part of either
Borrower that would require the consent of the Administrative Agent or the
Lenders.  This waiver letter shall be construed in accordance with and governed
by the laws of the State of New York.  This waiver letter constitutes the entire
understanding of the parties hereto and supersedes any other prior or
contemporaneous negotiations or agreements with respect to the subject matter
hereof.  This waiver letter may be executed in any number of separate
counterparts, each of which shall, collectively and separately, constitute one
agreement.

 

 

Very truly yours,

 

 

 

 

SUNTRUST BANK,

 

as Administrative Agent, as Issuing Bank, as Swingline Lender and as a Lender

 

 

 

 

 

 

By

/s/ Gregory Farno

 

 

Name:

Gregory Farno

 

 

Title:

Senior Vice President

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO EXTENSION LETTER]

 

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CITIBANK, N.A.,

 

as a Lender

 

 

 

 

 

 

By

/s/ Peggy Sanders

 

 

Name:

Peggy Sanders

 

 

Title:

Vice President

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO EXTENSION LETTER]

 

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KEYBANK NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

 

 

 

 

By

 

 

 

Name:

 

 

 

Title:

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO EXTENSION LETTER]

 

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PNC BANK, NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

 

 

 

 

By

/s/ Michael J. Elehwany

 

 

Name:

Michael J. Elehwany

 

 

Title:

Vice President

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO EXTENSION LETTER]

 

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M&T BANK,

 

as a Lender

 

 

 

 

 

 

 

By

 

 

 

Name:

 

 

 

Title:

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO EXTENSION LETTER]

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BRANCH BANKING AND TRUST COMPANY,

 

as a Lender

 

 

 

 

 

 

 

 

 

By

/s/ James E. Davis

 

 

Name:

James E. Davis

 

 

Title:

Senior Vice President

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO EXTENSION LETTER]

 

 

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JPMORGAN CHASE BANK, N.A.,

 

as a Lender

 

 

 

 

 

 

 

 

 

By

/s/ Jules Panno

 

 

Name:

Jules Panno

 

 

Title:

Vice President

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO EXTENSION LETTER]

 

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WACHOVIA BANK, N.A.,

 

as a Lender

 

 

 

 

 

 

 

By

 

 

 

Name:

 

 

 

Title:

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO EXTENSION LETTER]

 

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GENERAL ELECTRIC CAPITAL CORPORATION,

 

as a Lender

 

 

 

 

 

 

 

 

 

By

/s/ Rebecca A. Ford

 

 

Name:

Rebecca A. Ford

 

 

Title:

Duly Authorized Signatory

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO EXTENSION LETTER]

 

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Acknowledged and agreed to as of

the date herein above written.

 

BORROWERS:

 

AAI CORPORATION

 

 

 

 

By

/s/ James H. Perry

 

Name:

James H. Perry

 

Title:

Vice President and CFO

 

 

UNITED INDUSTRIAL CORPORATION

 

 

 

 

By

/s/ James H. Perry

 

Name:

James H. Perry

 

Title:

Vice President, CFO & Controller

 

 

 

 

 

 

[SIGNATURE PAGE TO EXTENSION LETTER]

 

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