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Exhibit 4.2    
  

 
 

FIRST AMENDMENT TO CREDIT AGREEMENT    
  

        This First Amendment to Credit Agreement (this "Amendment"), dated as of March 1, 2002, is by and among
various financial institutions parties hereto (collectively, the "Lenders"), Bank of America, N.A., as administrative and collateral agent for the
Lenders (in its capacity as administrative and collateral agent, the "Agent"), and UNOVA, Inc., a Delaware corporation (the  "Parent"), UNOVA
Industrial Automation Systems, Inc., a Delaware corporation, Intermec Technologies Corporation, a Washington corporation,
R & B Machine Tool Company, a Michigan corporation, J.S. McNamara Company, a Michigan corporation, M M & E, Inc., a Nevada corporation, Intermec IP Corp., a Delaware corporation,
and UNOVA IP Corp., a Delaware corporation (the Parent and each such corporation is individually hereinafter referred to as a "Borrower" and the Parent
together with all such corporations are hereinafter collectively referred to as the "Borrowers"). 

 
 

R E C I T A L S:    
  

        A.    WHEREAS,
the Borrowers, the Lenders, the Agent and Heller Financial, Inc., as syndication agent for the Lenders
executed that certain Credit Agreement dated as of July 12, 2001 (as amended from time to time, the "Credit Agreement") pursuant to which the
Lenders have agreed to make available to the Borrowers a revolving line of credit for loans and letters of credit (collectively, the "Loans"); 

        B.    WHEREAS,
the Borrowers have also requested that the Lenders and the Agent agree to amend the Credit Agreement in certain respects and the Lenders and the Agent have
agreed to such request in accordance with the terms hereof. 

        NOW,
THEREFORE, in consideration of the premises, and in order to induce the Lenders and the Agent to amend the Credit Agreement pursuant to the terms hereof, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

        1.    Recitals.    The foregoing Recitals are accurate and are incorporated herein and made a part hereof. 

        2.    Definitions.    Unless otherwise defined herein, all capitalized terms and phrases used in this Amendment shall
have the respective meanings ascribed to them in the Credit Agreement. 

        3.    New Defined Terms.    The following Defined Terms are hereby added to Annex
A-Defined Terms of the Credit Agreement in appropriate alphabetical order: 

        "Fixed Charge Test Period" means a period of four consecutive fiscal quarters ended on the last day of each fiscal quarter commencing on
or after January 1, 2003 (except with respect to any fiscal quarter ending on or before September 30, 2003, in which case the calculation shall be measured on a cumulative basis for the
period commencing on January 1, 2003 and ending on March 31, 2003, June 30, 2003 and September 30, 2003, respectively). 

        "Free Cash Flow" means, with respect to any applicable Free Cash Flow Test Period (i) EBITDA for such Free Cash Flow Test Period  minus (ii) Fixed Charges for
such Free Cash Flow Test Period. 

        "Free Cash Flow Test Period" means each of the periods commencing January 1, 2002 and ending on March 31, 2002,
June 30, 2002, September 30, 2002 and December 31, 2002, respectively." 

        4.    Amendment to Section 5.2(d).    Section 5.2(d) of
the Credit Agreement is hereby amended by inserting the phrase "and in Sections 7.25A and 7.25B"
immediately following the phrase "set forth in Sections 7.22 through 7.25" appearing in said Section. 

1

 

        5.    Amendment to Section 7.22.    Section 7.22 of the
Credit Agreement entitled "Fixed Charge Coverage Ratio" is hereby deleted in its entirety and the following is substituted in lieu thereof: 

        "7.22    Fixed Charge Coverage Ratio.

        (a)  The
Parent and its Subsidiaries will maintain a Fixed Charge Coverage Ratio of not less than .90 to 1.00 for the six (6) month period ended December 31,
2001 measured as of December 31, 2001. If the Parent and its Subsidiaries fail to maintain a Fixed Charge Coverage Ratio of not less than .90 to 1.00 for the six (6) month period ended
December 31, 2001, or if Borrowers fail to deliver timely the annual Financial Statements for the period ended December 31, 2001, pursuant to  Section 5.2(a), Borrowers shall immediately
pay to Agent for the pro rata benefit of the Lenders, a Fixed Charge Coverage Ratio Deficiency Fee of
$375,000 concurrently with earlier of the date Borrowers deliver, or are obligated to deliver, the Financial Statements required pursuant to Section 5.2(a)  to Co-Agents for the period ended
December 31, 2001 (which fee will be refunded if the applicable Financial Statements when delivered to and approved by
Co-Agents reflect a Fixed Charge Coverage Ratio of not less than .90 to 1.00 for such period). If Borrowers timely deliver such Financial Statements and the Fixed Charge Coverage Ratio
reflected therein is not less than .75 to 1.00 and Borrowers continuously maintain daily Availability of at least $25,000,000 from December 31, 2001 through the date the Financial Statements
for the period ending March 31, 2002 are delivered to Co-Agents, no Event of Default shall be deemed to have occurred solely as a result of the failure of the Parent and its
Subsidiaries to comply with the first sentence of this Section 7.22(a). If the Financial Statements delivered by Borrowers pursuant to  Section 5.2(a) to Agent for the period ended December 31, 2001, reflect a Fixed Charge Coverage Ratio (i) less than .75 to 1.00
measured for the six (6) month period ended as of December 31, 2001, or (ii) equal to or greater than .75 to 1.00 but less than .90 to 1.00 and Borrowers fail to maintain daily
Availability of at least $25,000,000 for each day from December 31, 2001 through the date the Financial Statements for the period ending March 31, 2002 are delivered to
Co-Agents, then in either such case under this Section 7.22(a)(i) or (a)(ii),
an Event of Default shall be deemed to have occurred. 

        (b)  The
Parent and its Subsidiaries will maintain a Fixed Charge Coverage Ratio as of the end of the last fiscal quarter during each Fixed Charge Test Period that occurs
from January 1, 2003 through June 30, 2004 of not less than the respective ratio set forth below (provided, however, that there shall be
no requirement to maintain the Fixed Charge Coverage Ratio as of the end of the last fiscal quarter during any Fixed Charge Test Period unless for any 30 consecutive, calendar day period that began or
ended (or began and ended) during the last fiscal quarter within such Fixed Charge Test Period (i) average Availability was less than $50,000,000 and (ii) Aggregate Revolver Outstandings
exceeded $10,000,000):  

	Fixed Charge Test Period Ended
 
	 	Fixed Charge

Coverage Ratio
	 
	March 31, 2003	 	.650 : 1.00	 
	June 30, 2003	 	.675 : 1.00	 
	September 30, 2003	 	.675 : 1.00	 
	December 31, 2003	 	.700 : 1.00	 
	March 31, 2004	 	.750 : 1.00	 
	June 30, 2004	 	.750 : 1.00	"

        6.    Amendment to Section 7.23.    Section 7.23 of the
Credit Agreement entitled "Minimum EBITDA" is hereby deleted in its entirety and the following is substituted in lieu thereof: 

"7.23    Minimum EBITDA.    The Borrowers shall generate EBITDA of not less than $0 during the fiscal quarter ended
December 31, 2001." 

2

 

        7.    Amendment to Section 7.24.    Section 7.24 of the
Credit Agreement entitled "Minimum Tangible Net Worth" is hereby deleted in its entirety and the following is substituted in lieu thereof: 

"7.24    Minimum Tangible Net Worth.    The Parent and its Subsidiaries will maintain Tangible Net Worth as of the end of each month
during the periods set forth below of not less than the respective amount set forth below opposite each such period: 

	Month
 
	 	Amount
	 
	November 30, 2001 through December 31, 2001	 	$	310,000,000	 
	January 31, 2002 through June 30, 2004	 	 	245,000,000	"

        8.    Amendment to Section 7.25.    Section 7.25 of the
Credit Agreement entitled "Capital Expenditures" is hereby deleted in its entirety and the following is substituted in lieu thereof: 

"7.25    Capital Expenditures.    Capital Expenditures of the Parent and its Subsidiaries shall not exceed the respective amount for
the respective periods set forth below: 

	Calendar Year
 
	 	Maximum Capital Expenditures

	2001	 	$	20,000,000
	2002	 	 	30,000,000
	2003	 	 	35,000,000
	2004	 	 	40,000,000

The
limitations on Capital Expenditures set forth above are cumulative limitations for the respective calendar year, measured quarterly. Capital Expenditures permitted hereunder and not used during
any calendar year may be carried over into a subsequent calendar year in an amount of up to $10,000,000. For purposes of the foregoing calculation, proceeds of the sale of obsolete, fully depreciated
or replaced Equipment and proceeds of casualty losses or condemnation proceedings affecting Equipment that are used by the Borrowers for the purpose of Capital Expenditures shall be deducted from the
calculation of Capital Expenditures for this covenant." 

        9.    Section 7.25A.    A new Section 7.25A is hereby
added to the Credit Agreement immediately following Section 7.25 as follows: 

"7.25A    Free Cash Flow.    The Parent and its Subsidiaries will maintain Free Cash Flow as of each date set forth below for the
applicable Free Cash Flow Test Period ending on such date of an amount not more negative than the respective amount set forth below opposite such date (provided, however,  that there shall be no
requirement to maintain Free Cash Flow as of any such date unless during any 30 consecutive, calendar day period that began or ended (or began and ended)
during the fiscal quarter ended as of such date (i) average Availability was less than $50,000,000 and (ii) Aggregate Revolver Outstandings exceeded $10,000,000): 

	Date
 
	 	Free Cash Flow
	 
	March 31, 2002	 	($	27,500,000	)
	June 30, 2002	 	($	36,500,000	)
	September 30, 2002	 	($	45,500,000	)
	December 31, 2002	 	($	47,000,000	)"

        10.    Section 7.25B.    A new Section 7.25B is hereby
added to the Credit Agreement immediately following Section 7.25A as follows: 

"7.25B    Minimum Availability.    The Borrowers shall have Availability of at least $30,000,000 at all times during the term of
this Agreement." 

3

 

        11.    Amendment to
Section 9.1(c)(i).    Section 9.1(c)(i) of the Credit Agreement is hereby amended by inserting the
phrase "or in Sections 7.25A and 7.25B" immediately following the phrase "7.9  through 7.29" appearing in said Section. 

        12.    Amendment Fee.    To induce the Agent and the Lenders to execute this Amendment, the Borrowers have agreed to
pay to the Agent for the benefit of the Lenders or, at the option of the Co-Agents, for the benefit of the Lenders executing this Amendment within the time period specified by the Agent, a
fee (the "Amendment Fee") pursuant to that certain letter agreement of even date herewith between the Agent and the Borrowers. Payment of the Amendment
Fee is a condition precedent to the effectiveness of this Amendment. The Borrowers acknowledge that upon execution of this Amendment by the Agent, the Borrowers and the Required Lenders, the Amendment
Fee shall constitute part of the Obligations and shall be fully earned regardless of whether all other conditions precedent to effectiveness of this Amendment are satisfied. The Amendment Fee shall be
nonrefundable. 

        13.    Acknowledgment of the Borrowers.    Each Borrower hereby acknowledges and agrees that: (a) such Borrower
has no defense, offset or counterclaim with respect to the payment of any sum owed to the Lenders or the Agent under the Loan Documents, or with respect to the performance or observance of any
warranty or covenant contained in the Credit Agreement or any of the other Loan Documents; and (b) the Lenders and the Agent have performed all obligations and duties owed to such Borrower
through the date hereof. 

        14.    Representations and Warranties of the Borrowers.    To induce the Lenders and the Agent to amend the Credit
Agreement, each Borrower represents and warrants to the Lenders and the Agent that: 

        (a)    Compliance with Credit Agreement.    On the date hereof, such Borrower is in compliance with all of the terms
and provisions set forth in the Credit Agreement (as modified by this Amendment) and no Default or Event of Default has occurred and is continuing; 

        (b)    Representations and Warranties.    On the date hereof after giving effect to this Amendment, the
representations and warranties set forth in Article 6 of the Credit Agreement are true and correct with the same effect as though such
representations and warranties had been made on the date hereof, except to the extent that such representations and warranties expressly relate to an earlier date; 

        (c)    Corporate Authority.    Such Borrower has full power and authority to consummate this Amendment, and to make
the borrowings under the Credit Agreement, and has full power and authority to incur and perform the obligations provided for under the Credit Agreement and this Amendment, all of which have been duly
authorized by all proper and necessary corporate action. No consent or approval of stockholders or of any public authority or regulatory body which has not been obtained is required as a condition to
the validity or enforceability of this Amendment; 

        (d)    Amendment as Binding Agreement.    This Amendment and the Credit Agreement (as modified by this Amendment)
constitute the valid and legally binding obligations of such Borrower fully enforceable against each Borrower in accordance with their respective terms (subject to the effects of bankruptcy,
insolvency, reorganization, moratoriums or other similar laws affecting the rights and remedies of creditors generally); and 

        (e)    No Conflicting Agreements.    The execution and performance by such Borrower of this Amendment, and the
borrowing by the Borrowers under the Credit Agreement (as modified by this Amendment), will not (i) to the best knowledge of such Borrower, violate any provision of law, any order of any court
or other agency of government, or the Articles of Incorporation or Bylaws of such Borrower; or (ii) violate any material indenture, contract, agreement or other instrument to which such
Borrower is a party, or by which any of its property is bound, or be in 

4

 

conflict with, result in a breach of or constitute (with due notice and or lapse of time) a default under, any such indenture, contract, agreement or other instrument; or (iii) result in the
creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of such Borrower, other than in favor of the Lenders and the Agent. 

        15.    Effectiveness of this Amendment.    The amendments set forth above shall become effective as of the date of
this Amendment only upon the satisfaction of the following conditions precedent: 

        Receipt of Documents.    The Agent shall have received all of the following, each (in the case of documents) duly executed and
dated the date of execution hereof, in form and substance satisfactory to the Agent: 

	(i)
	this
Amendment duly executed by the Agent, the Borrowers and the Required Lenders;

	(ii)
	payment
of the Amendment Fee;

	(iii)
	evidence
acceptable to Agent that the Term Debt Lender has modified the documents evidencing and securing the Term Debt Loan in a manner consistent
with this Amendment and otherwise on terms and conditions reasonably acceptable to Agent;

	(iv)
	an
opinion of the Borrowers' general counsel or outside counsel, or a combination of both, in form and substance acceptable to the Agent;

	(v)
	true,
complete and accurate copies, duly certified by an officer of the appropriate Borrower, of all documents evidencing any necessary corporate action,
resolutions, consents and governmental approvals, if any, required for the execution, delivery and performance of this Amendment and any
amendment relating to the Term Debt Loan, and any other document, instrument or agreement executed or delivered in connection therewith by such Borrower, including without limitation, those relating
to or executed by the Term Debt Lender concurrently with or in connection with this Amendment; and

	(vi)
	such
other instruments, documents, waivers and consents as the Lenders may reasonably request prior to the execution by the Required Lenders of this
Amendment. 

        16.    Effect on Credit Agreement.    Except as specifically amended hereby, the terms and provisions of the Credit
Agreement and the other Loan Documents are in all other respects ratified and confirmed and remain in full force and effect. No reference to this Amendment need be made in any notice, writing or other
communication relating to the Credit Agreement and the other Loan Documents, any such reference to the Credit Agreement and the other Loan Documents to be deemed a reference thereto as respectively
amended by this Amendment. All references to the Credit Agreement and the other Loan Documents in any document, instrument or agreement executed in connection with the Credit Agreement and the other
Loan Documents shall be deemed to refer to the Credit Agreement and the other Loan Documents as respectively amended hereby. 

        17.    Fees and Expenses.    The Borrowers hereby agree to pay all out-of-pocket expenses
incurred by the Agent in connection with the preparation, negotiation and consummation of this Amendment, and all other documents related hereto, including, without limitation, the reasonable fees and
expenses of the Lenders' counsel. 

        18.    Successors.    This Amendment shall be binding upon and inure to the benefit of the Borrowers, the Lenders, the
Agent and their respective successors and assigns. 

        19.    Governing Law.    This Amendment shall be construed in accordance with and governed by the laws of the State of
New York, without regard to the conflict of laws principles thereof. 

5

 

        20.    Counterparts.    This Amendment may be executed in the original or by telecopy in any number of counterparts,
each of which shall be deemed original and all of which taken together shall constitute one and the same Amendment. 

(SIGNATURE PAGES FOLLOW) 

6

 

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

	 	 	BORROWERS:
	

 	
 	

UNOVA, INC.,

a Delaware corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	

UNOVA INDUSTRIAL AUTOMATION

SYSTEMS, INC., a Delaware corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	

INTERMEC TECHNOLOGIES

CORPORATION, a Washington corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	

R & B MACHINE TOOL COMPANY,

a Michigan corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

7

 

	

 	
 	

J.S. McNAMARA COMPANY,

a Michigan corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	

M M & E, INC.,

a Nevada corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	

INTERMEC IP CORP.,

a Delaware corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	

UNOVA IP CORP.,

a Delaware corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	

AGENT:
	

 	
 	

BANK OF AMERICA, N.A.
	

 	
 	

By:	
 	

/s/  SCOTT S. WARD      

	 	 	Name:	 	Scott S. Ward

	 	 	Title:	 	Vice President

8

 

	

 	
 	

LENDERS:
	

 	
 	

BANK OF AMERICA, N.A.,

as a Lender
	

 	
 	

By:	
 	

/s/  SCOTT S. WARD      

	 	 	Name:	 	Scott S. Ward

	 	 	Title:	 	Vice President

	

 	
 	

HELLER FINANCIAL, INC.
	

 	
 	

By:	
 	

/s/  ELIZABETH MANNING      

	 	 	Name:	 	Elizabeth Manning

	 	 	Title:	 	Senior Vice President

	

 	
 	

THE CIT GROUP/BUSINESS CREDIT, INC.
	

 	
 	

By:	
 	

/s/  DALE GEORGE      

	 	 	Name:	 	Dale George

	 	 	Title:	 	Vice President

	

 	
 	

CONGRESS FINANCIAL

CORPORATION (WESTERN)
	

 	
 	

By:	
 	

/s/  PAUL F DODWELL      

	 	 	Name:	 	Paul F. Dodwell

	 	 	Title:	 	Vice President

9

 

	

 	
 	

GMAC BUSINESS CREDIT, LLC

	

 	
 	

By:	
 	

/s/  JOHN BUFF      

	 	 	Name:	 	John Buff

	 	 	Title:	 	Managing Director

	

 	
 	

GMAC COMMERCIAL CREDIT, LLC
	

 	
 	

By:	
 	

/s/  FRANK IMPERATO      

	 	 	Name:	 	Frank Imperato

	 	 	Title:	 	Senior Vice President

	

 	
 	

PNC BANK, NATIONAL ASSOCIATION

	

 	
 	

By:	
 	

/s/  SUNNIE M. KIM      

	 	 	Name:	 	Sunnie M. Kim

	 	 	Title:	 	Asst. Vice President

	

 	
 	

COMERICA BANK

	

 	
 	

By:	
 	

/s/  KEITH NICHOLS      

	 	 	Name:	 	Keith Nichols

	 	 	Title:	 	Vice President

10

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Exhibit 4.2

FIRST AMENDMENT TO CREDIT AGREEMENT

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Exhibit 4.8    
  

 
 

SECOND AMENDMENT TO LOAN AGREEMENT    
  

        This SECOND AMENDMENT TO LOAN AGREEMENT (this "Amendment") is
dated as of March 1, 2002 and entered into by and among UNOVA, INC., a Delaware corporation (the  "Parent"), UNOVA
INDUSTRIAL AUTOMATION SYSTEMS, INC., a Delaware corporation,  INTERMEC TECHNOLOGIES CORPORATION, a Washington corporation, R&B MACHINE TOOL
COMPANY, a Michigan
corporation, J.S. MCNAMARA COMPANY, a Michigan corporation, M M & E, INC., a Nevada
corporation, INTERMEC IP CORP., a Delaware corporation, and UNOVA IP CORP., a Delaware corporation (each
individually, a "Borrower," and collectively, the "Borrowers") and the Lenders listed on the signature
pages hereof (collectively, the "Lenders"). 

        WHEREAS, the Borrowers, the Lenders, and Special Value Investment Management, LLC, as administrative and collateral agent for the Lenders
(in its capacity as administrative and collateral agent, the "Agent") entered into that certain Loan Agreement, dated as of July 12, 2001, as
amended by that certain First Amendment to Loan Agreement dated as of August 15, 2001 (said agreement, as so amended, being the "Loan Agreement";
capitalized terms used in this Amendment without definition shall have the meanings given such terms in the Loan Agreement); 

        WHEREAS, the Borrowers have requested certain amendments be made to the Loan Agreement; and 

        WHEREAS, the Majority Lenders have consented to such request, all on the terms set forth herein; 

        NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein, the Borrowers and the Majority Lenders agree
as follows: 

        1.    AMENDMENTS TO LOAN AGREEMENT.    

        Subject
to the terms set forth in this Amendment and in reliance on the representations and warranties of the Borrowers set forth in this Amendment, the Loan Agreement hereby is amended
as follows: 

        (a)  Section 3.1(c)
of the Loan Agreement hereby is amended by deleting the reference to "Adjusted Applicable Prepayment Premium" set forth therein and substituting
therefor "Applicable Prepayment Premium". 

        (b)  Section 5.2(d)
of the Loan Agreement hereby is amended by inserting the phrase "and Sections 7.31 and  7.32" immediately following the phrase "set forth in Sections 7.22 through  7.25" appearing in said Section. 

        (c)  Section 7.22
of the Loan Agreement hereby is amended and restated in its entirety as follows: 

"7.22    Fixed Charge Coverage Ratio.

        (a)  The
Parent and its Subsidiaries will maintain a Fixed Charge Coverage Ratio not less than .90 to 1.00 for the six (6) month period ended December 31, 2001.
If the Parent and its Subsidiaries fail to maintain a Fixed Charge Coverage Ratio not less than .90 to 1.00 for the six (6) month period ended December 31, 2001, or if Borrowers fail to
deliver timely the annual Financial Statements for the period ended December 31, 2001, pursuant to Section 5.2(a), Borrowers shall immediately pay to Agent for the pro rata benefit of
the Lenders, a Fixed Charge Coverage Ratio Deficiency Fee of $375,000 concurrently with earlier of the date Borrowers deliver, or are obligated to deliver, the Financial Statements required pursuant
to Section 5.2(a) to Agent for the period ended December 31, 2001 (which fee will be refunded if the applicable Financial Statements when delivered to and approved by 

1

 

Agent reflect a Fixed Charge Coverage Ratio not less than .90 to 1.00 for such period). If Borrowers timely deliver such Financial Statements and the Fixed Charge Coverage Ratio reflected therein is
not less than .75 to 1.00 and Borrowers continuously maintain daily Availability of at least $25,000,000 from December 31, 2001 through the date the Financial Statements for the period ending
March 31, 2002 are delivered to Agent, no Event of Default shall be deemed to have occurred solely as a result of the failure of the Parent and its Subsidiaries to comply with the first
sentence of this Section 7.22(a). If the Financial Statements delivered by Borrowers pursuant to Section 5.2(a) to Agent for the period ended December 31, 2001 reflect a Fixed
Charge Coverage Ratio (i) less than .75 to 1.00 measured for the six (6) month period ended as of December 31, 2001 or (ii) equal to or greater than .75 to 1.00 but less
than .90 to 1.00 and Borrowers fail to maintain daily Availability of not less than $25,000,000 for each day from December 31, 2001 through the date the Financial Statements for the period
ending March 31,
2002 are delivered to Agent, then in either such case under this Section 7.22(a)(i) or (a)(ii), an Event of Default shall be deemed to have occurred. 

        (b)  The
Parent and its Subsidiaries will maintain a Fixed Charge Coverage Ratio as of the end of the last fiscal quarter during each Fixed Charge Test Period that occurs
from January 1, 2003 through June 30, 2004 of not less than the respective ratio set forth below (provided, however, that there shall be no requirement to maintain the Fixed Charge
Coverage Ratio as of the end of the last fiscal quarter during any Fixed Charge Test Period unless for any 30 consecutive, calendar day period that began or ended (or began and ended) during the last
fiscal quarter within such Fixed Charge Test Period (i) average Availability was less than $50,000,000 and (ii) Aggregate Revolver Outstandings exceeded $10,000,000): 

	Fixed Charge Test Period Ended
 
	 	Fixed Charge Coverage Ratio
	 
	March 31, 2003	 	.650 : 1.00	 
	June 30, 2003	 	.675 : 1.00	 
	September 30, 2003	 	.675 : 1.00	 
	December 31, 2003	 	.700 : 1.00	 
	March 31, 2004	 	.750 : 1.00	 
	June 30, 2004	 	.750 : 1.00	"

        (d)  Section 7.23
of the Loan Agreement hereby is amended and restated in its entirety as follows: 

"7.23    Minimum EBITDA.    The Borrowers shall generate EBITDA of not less than $0 during the fiscal quarter ended
December 31, 2001." 

        (e)  Section 7.24
of the Loan Agreement hereby is amended and restated in its entirety as follows: 

"7.24    Minimum Tangible Net Worth.    The Parent and its Subsidiaries will maintain Tangible Net Worth as of the end of each month
during the periods set forth below of not less than the respective amount set forth below opposite each such period: 

	Month
 
	 	Amount
	 
	November 30, 2001 through December 31, 2001	 	$	310,000,000	 
	January 31, 2002 through June 30, 2004	 	 	245,000,000	"

2

 

        (f)    Section 7.25
of the Loan Agreement hereby is amended and restated in its entirety as follows: 

"7.25    Capital Expenditures.    Capital Expenditures of the Parent and its Subsidiaries shall not exceed the respective amount for
the respective periods set forth below: 

	Calendar Year
 
	 	Maximum Capital Expenditures

	2001	 	$	20,000,000
	2002	 	 	30,000,000
	2003	 	 	35,000,000
	2004	 	 	40,000,000

The
limitations on Capital Expenditures set forth above are cumulative limitations for the respective calendar year, measured quarterly. Capital Expenditures permitted hereunder and not used during
any calendar year may be carried over into a subsequent calendar year in an amount of up to $10,000,000. For purposes of the foregoing calculation, proceeds of the sale of obsolete, fully depreciated
or replaced Equipment and proceeds of casualty losses or condemnation proceedings affecting Equipment that are used by the Borrowers for the purpose of Capital Expenditures shall be deducted from the
calculation of Capital Expenditures for this covenant." 

        (g)  Article 7
of the Loan Agreement hereby is amended by inserting the following new Sections 7.31 and 7.32 immediately following Section 7.30 appearing in
said Article: 

"7.31    Free Cash Flow.    The Parent and its Subsidiaries will maintain Free Cash Flow as of each date set forth below for the
applicable Free Cash Flow Test Period ending on such date of an amount not less than (i.e., not more negative than) the respective amount set forth
below opposite such date (provided, however, that there shall be no requirement to maintain Free Cash Flow as of any such date unless during any 30 consecutive, calendar day period that began or ended
(or began and ended) during the fiscal quarter ended as of such date (i) average Availability was less than $50,000,000 and (ii) Aggregate Revolver Outstandings exceeded $10,000,000): 

	Date
 
	 	Free Cash Flow
	 
	March 31, 2002	 	($	27,500,000	)
	June 30, 2002	 	($	36,500,000	)
	September 30, 2002	 	($	45,500,000	)
	December 31, 2002	 	($	47,000,000	)

7.32    Minimum Availability.    The Borrowers shall have Availability of at least $30,000,000 at all times during the term of this
Agreement." 

        (h)  Section 9.1(c)(i) of
the Loan Agreement hereby is amended by inserting the phrase "and 7.31 and 7.32" immediately following the phrase "7.9 through 7.29"
appearing in said Section. 

        (i)    Annex
A to the Loan Agreement hereby is amended by deleting therefrom the defined term "Adjusted Applicable Prepayment Premium". 

        (j)    The
definition of "Applicable Prepayment Premium" set forth in Annex A to the Loan Agreement hereby is amended and restated in its entirety as follows: 

"Applicable Prepayment Premium" means an amount equal to (a) in the case of a prepayment in an aggregate amount not in excess of $5,000,000
resulting from the sale or other disposition of the Headquarters Property, 1.50% times the principal amount of the Term Loan to be prepaid, and (b) in all other cases, 3.0% times the principal
amount of the Term Loan to be prepaid. 

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        (k)  Annex
A to the Loan Agreement hereby is amended by inserting the following new defined terms in the proper alphabetical order: 

"Aggregate Revolver Outstandings" means, as of any date of determination, the sum of (a) the unpaid balance of revolving loans, (b) the
aggregate amount of revolving loans requested by the Borrowers but not yet advanced, (c) one hundred percent (100%) of the aggregate undrawn face amount of all outstanding letters of credit,
and (d) without duplication the aggregate amount of any unpaid reimbursement obligations in respect of letters of credit, in each case, as determined by reference to the Revolving Credit
Agreement. 

"Availability" has the meaning given to such term in the Revolving Credit Agreement. 

"Fixed Charge Test Period" means a period of four consecutive fiscal quarters ended on the last day of each fiscal quarter commencing on or after
January 1, 2003 (except with respect to any fiscal quarter ending on or before September 30, 2003, in which case the calculation shall be measured on a cumulative basis for the period
commencing on January 1, 2003 and ending on March 31, 2003, June 30, 2003 and September 30, 2003, respectively). 

"Free Cash Flow" means, with respect to any applicable Free Cash Flow Test Period (i) EBITDA for such Free Cash Flow Test Period minus
(ii) Fixed Charges for such Free Cash Flow Test Period. 

"Free Cash Flow Test Period" means each of the periods commencing January 1, 2002 and ending on March 31, 2002, June 30, 2002,
September 30, 2002 and December 31, 2002, respectively. 

        2.    ACKNOWLEDGEMENT OF BORROWERS.    Each Borrower hereby acknowledges and agrees that: (a) such Borrower has
no defense, offset or counterclaim with respect to the payment of any sum owed to the Lenders or the Agent under the Loan Documents, or with respect to the performance or observance of any warranty or
covenant contained in the Loan Agreement or any of the other Loan Documents; and (b) the Lenders and the Agent have performed all obligations and duties owed to such Borrower through the date
hereof. 

        3.    REPRESENTATIONS AND WARRANTIES OF THE BORROWERS.    To induce the Lenders to amend the Loan Agreement, each
Borrower represents and warrants to the Lenders and the Agent that: 

        (a)    Compliance with Loan Agreement.    On the date hereof, such Borrower is in compliance with all of the terms and
provisions set forth in the Loan Agreement (as modified by this Amendment) and no Default or Event of Default has occurred and is continuing; 

        (b)    Representations and Warranties.    On the date hereof after giving effect to this Amendment, the
representations and warranties set forth in Article 6 of the Loan Agreement are true and correct with the same effect as though such representations and warranties had been made on the date
hereof, except to the extent that such representations and warranties expressly relate to an earlier date; 

        (c)    Corporate Authority.    Such Borrower has full power and authority to consummate this Amendment, and to make
the borrowings under the Loan Agreement, and has full power and authority to incur and perform the obligations provided for under the Loan Agreement and this Amendment, all of which have been duly
authorized by all proper and necessary corporate action. No consent or approval of stockholders or of any public authority or regulatory body which has not been obtained is required as a condition to
the validity or enforceability of this Amendment; 

        (d)    Amendment as Binding Agreement.    This Amendment and the Loan Agreement (as modified by this Amendment)
constitute the valid and legally binding obligations of such Borrower 

4

 

fully enforceable against each Borrower in accordance with their respective terms (subject to the effects of bankruptcy, insolvency, reorganization, moratoriums or other similar laws affecting the
rights and remedies of creditors generally); and 

        (e)    No Conflicting Agreements.    The execution and performance by such Borrower of this Amendment, and the
borrowing by the Borrowers under the Loan Agreement (as modified by this Amendment), will
not (i) to the best knowledge of such Borrower, violate any provision of law, any order of any court or other agency of government, or the Articles of Incorporation or Bylaws of such Borrower;
or (ii) violate any material indenture, contract, agreement or other instrument to which such Borrower is a party, or by which any of its property is bound, or be in conflict with, result in a
breach of or constitute (with due notice and or lapse of time) a default under, any such indenture, contract, agreement or other instrument; or (iii) result in the creation or imposition of any
lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of such Borrower, other than in favor of the Lenders and the Agent. 

        4.    EFFECTIVENESS OF THIS AMENDMENT.    The amendments set forth above shall become effective as of the date of this
Amendment only upon the satisfaction of the following conditions precedent: 

        Receipt of Documents.    The Lenders and the Agent shall have received all of the following, each (in the case of documents)
duly executed and dated the date of execution hereof, in form and substance satisfactory to the Agent: 

	(i)
	this
Amendment duly executed by the Borrowers and the Majority Lenders;

	(ii)
	evidence
acceptable to Agent that the Revolving Credit Agreement has been modified in a manner consistent with this Amendment or otherwise on terms and
conditions reasonably acceptable to Agent;

	(iii)
	an
opinion of the Borrowers' general counsel or outside counsel, or a combination of both, in form and substance acceptable to the Agent;

	(iv)
	true,
complete and accurate copies, duly certified by an officer of the appropriate Borrower, of all documents evidencing any necessary corporate
action, resolutions, consents and governmental approvals, if any, required for the execution, delivery and performance of this Amendment and any amendment relating to the Revolving Credit Agreement,
and any other document, instrument or agreement executed or delivered in connection therewith by such Borrower, including without limitation, those relating to or executed by the lenders party to the
Revolving Credit Agreement concurrently with or in connection with this Amendment; and

	(v)
	such
other instruments, documents, waivers and consents as the Lenders may reasonably request prior to the execution by the Majority Lenders of this
Amendment. 

        5.    EFFECTS ON LOAN AGREEMENT.    Except as specifically amended hereby, the terms and provisions of the Loan
Agreement and the other Loan Documents are in all other respects ratified and confirmed and remain in full force and effect. No reference to this Amendment need be made in any notice,
writing or other communication relating to the Loan Agreement and the other Loan Documents, any such reference to the Loan Agreement and the other Loan Documents to be deemed a reference thereto as
respectively amended by this Amendment. All references to the Loan Agreement and the other Loan Documents in any document, instrument or agreement executed in connection with the Loan Agreement and
the other Loan Documents shall be deemed to refer to the Loan Agreement and the other Loan Documents as respectively amended hereby. 

        6.    FEES AND EXPENSES.    The Borrowers hereby agree to pay all out-of-pocket expenses
incurred by the Agent in connection with the preparation, negotiation and consummation of this 

5

 

Amendment, and all other documents related hereto, including, without limitation, the reasonable fees and expenses of the Agent's counsel. 

        7.    SUCCESSORS.    This Amendment shall be binding upon and inure to the benefit of the Borrowers, the Lenders, the
Agent and their respective successors and assigns. 

        8.    GOVERNING LAW.    This Amendment shall be construed in accordance with and governed by the laws of the State of
New York, without regard to the conflict of laws principles thereof. 

        9.    COUNTERPARTS.    This Amendment may be executed in the original or by telecopy in any number of counterparts,
each of which shall be deemed original and all of which taken together shall constitute one and the same Amendment. 

[Signature pages follow]

6

 

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

	 	 	"PARENT"
	

 	
 	

UNOVA, INC., a Delaware corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	
"BORROWERS"
	

 	
 	

UNOVA, INC., a Delaware corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	

UNOVA INDUSTRIAL AUTOMATION SYSTEMS, INC.,

a Delaware corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	

INTERMEC TECHNOLOGIES

CORPORATION, a Washington corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	

R & B MACHINE TOOL COMPANY, a Michigan corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

7

 

	

 	
 	

UNOVA IP CORP., a Delaware corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	

J.S. MCNAMARA COMPANY, a Michigan corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	

M M & E, INC., a Nevada corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

	

 	
 	

INTERMEC IP CORP., a Delaware corporation
	

 	
 	

By:	
 	

/s/  ELMER C. HULL, JR.      

	 	 	Name:	 	Elmer C. Hull Jr.

	 	 	Title:	 	VP & Treasurer

8

 

	 	 	"LENDERS"
	

 	
 	

SPECIAL VALUE BOND FUND, LLC
	

 	
 	

By:	
 	

/s/  MARK K. HOLDSWORTH      

	 	 	Name:	 	Mark K. Holdsworth

	 	 	Title:	 	Member

	

 	
 	

SPECIAL VALUE BOND FUND II, LLC
	

 	
 	

By:	
 	

/s/  MARK K. HOLDSWORTH      

	 	 	Name:	 	Mark K. Holdsworth

	 	 	Title:	 	Member

	

 	
 	

MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
	 	 	By:	 	David L. Babson & Company Inc.,

as Investment Adviser
	

 	
 	

By:	
 	

/s/  KATHLEEN LYNCH      

	 	 	Name:	 	Kathleen Lynch

	 	 	Title:	 	Member

	

 	
 	

MASSMUTUAL HIGH YIELD PARTNERS II LLC
	 	 	By:	 	HYP Management, Inc.

as Managing Member
	

 	
 	

By:	
 	

/s/  KATHLEEN LYNCH      

	 	 	Name:	 	Kathleen Lynch

	 	 	Title:	 	Member

	

 	
 	

TRINITY UNIVERSAL INSURANCE

COMPANY
	

 	
 	

By:	
 	

/s/  ERIC J. DRANT      

	 	 	Name:	 	Eric J. Drant

	 	 	Title:	 	Director and Assistant Treasurer

9

 

	

 	
 	

UNITED INSURANCE COMPANY OF

AMERICA
	

 	
 	

By:	
 	

/s/  ERIC J. DRANT      

	 	 	Name:	 	Eric J. Drant

	 	 	Title:	 	Director and Assistant Treasurer

	

 	
 	

THE RELIABLE LIFE INSURANCE

COMPANY
	

 	
 	

By:	
 	

/s/  ERIC J. DRANT      

	 	 	Name:	 	Eric J. Drant

	 	 	Title:	 	Director and Assistant Treasurer

10

QuickLinks

Exhibit 4.8

SECOND AMENDMENT TO LOAN AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]