Document:

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                                                                    Exhibit 10.1

                                February 1, 2002

Acorn Products, Inc.
390 West Nationwide Blvd.
Columbus, OH  43215
Attention:  Special Committee of Board of Directors

Gentlemen:

         The undersigned existing stockholders of Acorn Products, Inc. ("ACORN")
representing funds and accounts managed by TCW Special Credits and Oaktree
Capital Management, LLC (the "PRINCIPAL HOLDERS") are pleased to submit the
following preliminary proposal for a recapitalization of UnionTools, Inc. (the
"COMPANY") that provides for the purchase of newly-issued stock of Acorn by the
Principal Holders or, at the election of Acorn, a purchase of the Company by the
Principal Holders, or an entity they control, that would afford existing holders
of Acorn common stock a continuing direct or indirect equity interest in the
Company with the equivalent economic effects as described herein (the
"TRANSACTION"). Among other things, the Transaction would result in the
repayment of the Company's obligations under its existing credit agreement. We
are extremely interested in pursuing the Transaction.

         We understand that the Company is obligated under its existing credit
agreement (the "EXISTING CREDIT AGREEMENT") to deliver to the lenders under that
agreement a certified copy of a letter of intent acceptable to Acorn's board of
directors (the "ACORN BOARD") by the date hereof. We also understand that the
Acorn Board established a committee of its members (the "SPECIAL COMMITTEE") to
monitor, review, consider and negotiate the terms of a proposed transaction
between Acorn and the Principal Holders and to determine whether to recommend
such transaction for approval by the Acorn Board. We are submitting this letter
to Acorn and the Special Committee with the understanding that, even if it is
executed by Acorn, it will not obligate Acorn to consummate the transactions
contemplated hereby. Rather, it will form the basis for discussions and
negotiations between Acorn and the Special Committee, on the one hand, and the
Principal Holders, on the other, with respect to the terms of a Transaction, as
the Special Committee undertakes the responsibilities which have been delegated
to it by the Acorn Board.

         The principal terms of our preliminary proposal are outlined below:

1.       OUTLINE OF TRANSACTION. On the terms and subject to the conditions
described herein, the Principal Holders would (a) purchase for cash from Acorn
7,000,000 newly-issued shares of Acorn common stock at a price of $1.00 per
share (the "SHARE PURCHASE"), and (b) exchange all of their outstanding
participation interests in the Company's 12% Exchangeable Notes, representing
approximately $8,000,000 of principal and accrued interest as of April 30, 2002,
for approximately 8,000,000 additional shares of Acorn common stock (the "NOTE

                                      -5-
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EXCHANGE"). Acorn would advance to the Company cash in the amount of $7,000,000
that would be applied, together with borrowings under a new secured credit
facility, to repay all outstanding obligations of the Company (then due and
payable) under the Existing Credit Agreement. Following the consummation of such
transactions, the holders of Acorn common stock (other than the Principal
Holders and their affiliates) would receive rights (at the rate of 350 rights
per 100 shares of Acorn common stock held as of a record date to be established)
to purchase one share of Acorn common stock at $1.00 per share for each right
received (the "RIGHTS OFFERING"). Assuming that the number of Acorn shares of
common stock held by persons other than Principal Holders is approximately
1,800,000, then such rights offer would entitle holders (other than Principal
Holders and their affiliates) to purchase up to 6,300,000 shares of Acorn common
stock for aggregate consideration of $6,300,000. The Principal Holders would act
as stand-by purchasers to the extent that less than 3,000,000 shares are issued
upon completion of the Rights Offering.

2.       NEW CREDIT FACILITY. The new credit facility would be comprised of a
revolving loan facility, providing for advance rates of 85% against eligible
receivables and 60% of eligible inventory, and a $13 million term loan at
Closing which would be subject to a $3 million prepayment without penalty by the
Company upon completion of the Rights Offering. The new credit facility would
have a maturity of not less than three years; a weighted average LIBOR spread of
not more that 3.75%; other terms not less favorable than currently in effect
under the Existing Credit Agreement and other terms satisfactory to the
Principal Holders and Acorn.

3.       CONDITIONS. The obligations of the Principal Holders to consummate the
Transaction will be subject to the satisfaction of customary conditions,
including (i) the negotiation and execution of definitive agreements and related
documents contemplated by such agreement on terms satisfactory to the Principal
Holders, (ii) receipt of all necessary governmental and material third party
approvals (to be mutually identified and agreed upon) which are required to
consummate the transactions contemplated hereby, (iii) funding of the new credit
facility on terms and conditions satisfactory to the Principal Holders, (iv)
absence of a material adverse change in the financial condition, results of
operations, business, assets, properties or prospects of Acorn and Company,
taken together, including the actual or potential loss or reduction of business
with any material customer, (v) Acorn's stockholders shall have approved the
Transaction, (vi) the Principal Holders' determination in good faith that the
Company's net operating tax losses and other tax attributes will not be
adversely affected by consummation of the Transaction and/or subsequent Rights
Offering, and (vii) fees and expenses of the transaction payable by the Company
not exceeding $250,000 (inclusive of fees and expenses relating to legal,
accounting and advisory work already performed (but not yet paid) or to be
performed on behalf of Acorn, the Company, the Board of Directors and the
Special Committee). We would expect definitive documentation for the Transaction
to contain customary covenants, representations and warranties, closing
conditions and other customary terms in transactions of this type.

                                      -6-
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4.       ACCESS TO INFORMATION; PRE-CLOSING ACTIVITIES. Until this letter
agreement terminates, Acorn will afford, and will cause the Company and its
subsidiaries and its and their respective officers and agents to afford, to the
Principal Holders and their representatives, consultants, agents, lenders,
employees and investors full and complete access, during regular business hours,
to the properties, business, personnel (including outside accountants and
lawyers), and financial, legal, accounting, tax and other data and information
relating to the Company as requested by the Principal Holders or their
representatives or agents for purposes of evaluating the Transaction. Acorn
will, and will cause the Company to, conduct its business and operations in the
usual and ordinary course in accordance with good business practices between the
date of this letter and the execution of a definitive agreement.

5.       FEES AND EXPENSES. Acorn and the Principal Holders will each pay their
respective fees and expenses (including the fees and expenses of legal counsel,
investment bankers, brokers or other representatives or consultants) in
connection with the transactions contemplated hereby; provided that upon
consummation of the Transaction, Acorn or the Company will reimburse the
reasonable fees and expenses incurred by the Principal Holders in connection
with such transactions.

6.       PUBLICITY. None of the Principal Holders, Acorn or the Company, or
their respective directors, officers, employees, advisors, agents, affiliates or
representatives will make any press release or public announcement concerning
the existence of this proposal or of the transactions contemplated hereby
without the prior written approval of the other parties hereto, except as
required by law, regulation or stock exchange rule; provided that any party
required to make a press release or public announcement pursuant to law,
regulation or exchange rule shall give prior notice to the other party and a
reasonable opportunity for the other party to review and comment on such press
release or public announcement.

7.       TERMINATION; NON-EXCLUSIVE. This letter will automatically terminate
and be of no further force and effect upon the first to occur of (i) delivery by
the Special Committee to the undersigned of a notice of termination, (ii) the
execution of a definitive agreement, or (iii) the date which is 45 days from the
date hereof, unless the parties hereto mutually agree to an extension hereof.
Notwithstanding the foregoing, the obligations of the parties pursuant to
paragraphs 5 and 6 and this paragraph 7 hereof will survive any such termination
of this letter. For the avoidance of doubt, the parties acknowledge that this
letter agreement does not restrict in any manner the right or ability of Acorn
or the Company to engage in discussions, directly or indirectly, with any third
party with respect to any transaction which conflict with or be an alternative
to the Transaction. Moreover, the obligations of the Principal Holders pursuant
to the terms of this letter shall be several and not joint as among such
holders.

                                      -7-
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8.       COUNTERPARTS; OTHER. This letter may be executed in two or more
counterparts (any of which may be by facsimile signature), all of which taken
together will constitute one binding agreement among the parties hereto and
their successors and assigns. This letter shall be governed by the substantive
laws (and not the law of conflicts) of the State of Delaware.

                                    * * * * *

                                      -8-
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         We look forward to the opportunity to discuss our proposal with you at
your earliest convenience.

                                   Sincerely,

                                   By: /s/ Matthew Barrett
                                      ----------------------------------------
                                   Matthew Barrett, as Authorized Signatory of
                                   The Entities Set forth on the Attached
                                   Schedule A

                                   By: /s/ Vincent Cebula
                                      ----------------------------------------
                                   Vincent Cebula, Managing Director of
                                   Oaktree Capital Management, LLC, in its
                                   Capacity as General Partner of OCM
                                   Principal Opportunities Fund, L.P.

ACCEPTED AND AGREED as of
February 1, 2002

ACORN PRODUCTS, INC.

By: /s/ A. Corydon Meyer
   --------------------------------------------------

Its: President and CEO
    -------------------------------------------------

                                      -9-
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               SCHEDULE A TO LETTER AGREEMENT OF FEBRUARY 1, 2002

TCW SPECIAL CREDITS FUND IIIB

TCW SPECIAL CREDITS TRUST IIIB

THE COMMON FUND FOR BOND INVESTMENTS, INC.

DELAWARE STATE EMPLOYEES' RETIREMENT FUND

WEYERHAEUSER COMPANY MASTER RETIREMENT TRUST (TCW)

TCW SPECIAL CREDITS TRUST

TCW SPECIAL CREDITS TRUST IV

TCW SPECIAL CREDITS TRUST IV-A

TCW SPECIAL CREDITS FUND IV

TCW SPECIAL CREDITS PLUS FUND

                                      -10-<PAGE>
                                                                    Exhibit 4(a)

                 SEVENTH AMENDMENT TO CREDIT AND LOAN AGREEMENT
                 ----------------------------------------------

         THIS SEVENTH AMENDMENT (the "Amendment"), effective as of January 18,
2002, is made to that certain Credit and Loan Agreement, dated as of August 7,
1998, as the same was amended by that certain First Amendment to Credit
Agreement and Loan Agreement, dated as of October 6, 1998, that certain Second
Amendment to Credit and Loan Agreement, dated as of February 9, 1999, that
certain Third Amendment to Credit and Loan Agreement, dated as of June 23, 2000,
that certain Fourth Amendment to Credit and Loan Agreement, dated as of August
24, 2000, that certain Fifth Amendment to Credit and Loan Agreement dated as of
July 13, 2001, and that certain Sixth Amendment to Credit and Loan Agreement
dated as of December 27, 2001 (the "Sixth Amendment") (collectively, the "Loan
Agreement"), by and among TRANSMATION, INC., an Ohio corporation (the
"Borrower"), THE LENDERS PARTY THERETO FROM TIME TO TIME (the "Lenders") and
KEYBANK NATIONAL ASSOCIATION, a national banking association, as Agent (in such
capacity, together with its successors in such capacity, the "agent").

                                    RECITALS:
                                    ---------

         WHEREAS, the Borrower has requested that certain changes and
modifications be made to the Loan Agreement in connection with the sale of
certain assets of Borrower to HUGHES CORPORATION ("Hughes") and the Lenders are
agreeable to making the same in accordance with the terms and conditions set
forth herein, commencing as of the effective date first written above.

         NOW, THEREFORE, in consideration of the promises and of the mutual
covenants herein contained, the receipt and sufficiency of which are hereby
mutually acknowledged, and intending to be legally bound hereby, the parties
hereto agree as follows:

         1. DEFINITIONS; REFERENCES. All capitalized terms used and not
otherwise defined in this Amendment shall have the meanings ascribed to such
terms in the Loan Agreement. All Section, Subsection and Paragraph references
shall be to Sections, Subsections and Paragraphs of the Loan Agreement.

         2. REVOLVING CREDIT LOANS.

         (a) Paragraph (iii) of Subsection (a) of Section 2.01 and all previous
amendments thereto of the Loan Agreement is amended to read in its entirety as
follows:

             (iii) Notwithstanding anything to the contrary in the foregoing
paragraphs (i) and (ii), and subject to downward adjustment pursuant to
Paragraph 5 of this Amendment, at no time during the term of this Agreement
shall the aggregate amount of the Lenders Revolving Credit Commitment, or the
aggregate of outstanding Revolving Credit Loans plus the aggregate undrawn face
amount of all issued and outstanding Letters of Credit (as hereinafter set
forth), exceed $9,500,000.00 (the "Revolving Credit Facility Limit").

<PAGE>

         3. REVOLVING CREDIT LOAN BORROWING FORMULA ("BORROWING FORMULA").

         (a) Paragraph (v) of Subsection (a) of Section 2.01 of the Loan
Agreement is replaced in its entirety with the following:

             (v) Notwithstanding any of the provisions of Subsection (a) of
Section 2.01 and any previous amendments thereto, the principal amount
outstanding under the Revolving Credit Loans shall, at no time, exceed the sum
of (X) eighty (80%) percent of the amount of Eligible Accounts Receivable
(hereafter defined) on the date of determination and (Y) fifty (50%) percent of
the amount of Eligible Inventory (hereafter defined). No advance shall be made
if its making would cause the aggregate unpaid balance of all advances
outstanding under the Revolving Credit Loans to exceed $9,500,000.00 (subject to
downward adjustment pursuant to Paragraph 5 of this Amendment). The Borrower
shall provide to the Agent, with a copy to each Lender, on a monthly basis, a
written borrowing base certificate certifying the amount of Eligible Accounts
Receivable, Eligible Inventory, outstanding balance of the Revolving Credit
Loans and available amount for advance under the Borrowing Formula.

         As used herein, Eligible Accounts Receivable and Eligible Inventory
shall have the following meanings:

         "Eligible Accounts Receivable" means an Account Receivable owing to
Borrower which, unless the Bank shall otherwise in its sole discretion agree,
meets with the following specifications at the time it comes into existence and
continues to meet the same until it is collected in full:

         (a) The Account Receivable is due and payable not more than thirty (30)
days after the date of invoice therefore, and is not more than ninety (90) days
past due;

         (b) The Account Receivable arose from the performance of services or
sale of products by the Borrower;

         (c) The Account Receivable is not subject to any prior assignment,
claim, lien or security interest and the Borrower will not make any further
assignment thereof or create any further security interest therein nor permit
the Borrower's rights therein to be reached by attachment, levy, garnishment or
other judicial process;

         (d) The net value of an Account Receivable after allowable set off,
credit, or adjustment by the Account Debtor;

         (e) Accounts Receivable shall not include: (i) amounts owed to Borrower
from any Subsidiary of Borrower; (ii) amounts due the Borrower from officers,
shareholders or employees; (iii) amounts carried on the books and records of the
Borrower as an intercompany or divisional receivable; (iv) the total receivables
owed by any Account Debtor having more than ten percent (10%) of its
indebtedness to the Borrower ninety (90) days or more past due from the date of
the invoice (excluding retainages); (v) any Account Receivable which the Bank
has reasonably determined in good faith is unsatisfactory; and (vi) retainages.

<PAGE>

         (f) The term "Account Receivable" shall include all accounts, accounts
receivable, contract rights for the payment of money, chattel paper, and all
other obligations and receivables now owned or hereafter acquired by the
Borrower, whether now existing or hereafter arising.

         (g) The term "Account Debtor" includes the buyer or lessee of services
or products from the Borrower.

         (h) The term "Eligible Inventory" shall include raw materials and
completed products, but shall not include any work in progress.

         4. APPLICATION OF SALES PROCEEDS. Assuming $2,885,026.00 of proceeds
received by the Borrower in connection with the sale of assets to Hughes (the
"Sale"), of the $2,660,026.00 received at the closing, the proceeds shall be
applied as follows:

               Pay down Term Loan A, $1,313,426.00;
               Pay down Revolving Credit Note, $1,131,600.00;
               Estimated transaction costs $215,000.00.*

         * In the event that the documented transaction costs are less
         than $215,000.00, Borrower will use this amount to pay down Term
         Loan A.

         Notwithstanding anything contained herein to the contrary, it is the
understanding of the parties that all of the gross proceeds of the Sale, less
the transition costs of up to $215,000.00, shall be applied to reduce
indebtedness under the Loan Agreement.

         5. REDUCTION OF CREDIT LIMIT. In the event that the tax costs from the
transaction referenced in the Sixth Amendment are less than $630,000.00, the
$9,500,000.00 total Revolving Credit Facility Limit shall be permanently reduced
dollar for dollar, by the difference between $630,000.00 and the actual taxes
owing and relating to that transaction. Similarly, if the Lease Obligations as
defined in the Sixth Amendment are less than $500,000.00, the $9,500,000.00
Revolving Credit Facility Limit shall be permanently reduced, dollar for dollar,
by the difference between $500,000.00, and the actual costs; provided, however,
in no event shall the maximum total Revolving Credit Facility Limit be reduced
below $8,900,000.00, except that the Revolving Credit Facility Limit may be
further reduced, without limitation, in the event that Borrower enters into a
transaction whereby assets are sold outside of the ordinary course of business.

         6. CONDITIONS TO ENTERING INTO AMENDMENT.

         The obligation of each Lender to enter into this Agreement and to make
Loans on the date hereof is subject to the satisfaction of the following
conditions precedent, in addition to the conditions precedent set forth in
Section 4.02 of the Loan Agreement:

               FEES, EXPENSES, ETC. All fees and other compensation to be paid
               to the Agent or the Lenders pursuant hereto, and pursuant to any
               other

<PAGE>

               written agreement on or prior to the date hereof shall have been
               paid or received, and all invoiced expenses incurred by the Agent
               pursuant hereto shall have been paid.

         7. CERTAIN REPRESENTATIONS. Borrower represents and warrants to the
Agent and each Lender as follows:

               (a) All Conditions contained in Section 4.02 of the Loan
          Agreement have been satisfied in all material respects except as
          otherwise specifically set forth herein.

               (b) Borrower's Articles of Incorporation and By-Laws provided to
          Agent on August 7, 1998 have not been amended or repealed.

         8. MISCELLANEOUS. This Amendment is entered into pursuant to and in
accordance with Section 9.03 of the Loan Agreement. This Amendment may be
executed in counterparts, each of which shall be deemed an original and all of
which together shall constitute one and the same instrument. The parties agree
that they will cooperate in signing and delivering any documents necessary to
effectuate the terms of this Agreement. Except as expressly modified or amended
herein, the Loan Agreement and each of the other Loan Documents to which the
Borrower is a party is hereby restated, ratified and confirmed and shall remain
in full force and effect.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly
authorized, have caused this Seventh Amendment to Credit and Loan Agreement to
be duly executed and delivered as of the date first above written.

                                               TRANSMATION, INC.

                                      By:  /s/ Peter J. Adamski
                                         ---------------------------------------
                                      Name:    Peter J. Adamski
                                           -------------------------------------
                                      Title:   Vice President - Finance and CFO
                                            ------------------------------------

                                               KEYBANK NATIONAL ASSOCIATION,
                                               as Agent and a Lender

                                      By: /s/ Timothy J. Poyton
                                         ---------------------------------------
                                              Timothy J. Poyton

                                               LENDERS:

                                               CITIZENS BANK OF MASSACHUSETTS,
                                               F.K.A. STATE STREET
                                               BANK AND TRUST COMPANY

                                      By:   /s/ T.D. Opie
                                         ---------------------------------------
                                      Name:   T.D. Opie
                                           -------------------------------------
                                      Title:  Vice President
                                            ------------------------------------

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