Document:

exv10w1

 

Exhibit 10.1

MANAGEMENT CONTINUITY AGREEMENT

	 	 	This Management Continuity Agreement (“Agreement”) is made and entered into as
of November 1, 2004, by and between Illini Corporation, an Illinois bank
holding company organized under the laws of the Illinois (“Illini”), Illini
Bank, a bank organized under the Illinois Banking Act (“Bank”), and Gaylon E.
Martin, 407 Dover Drive, Chatham, Illinois (“Officer”).

WITNESSETH

	 	 	WHEREAS, the Officer is seeking employment with Illini Corporation as
President, and is now employed with the Bank as President;
	 
	 	 	WHEREAS, Illini and Bank wish to attract and retain highly qualified executives
and to achieve this goal it is in the best interest of Illini and Bank to
secure the continued services of the Officer regardless of a change in control
of Illini, and to reward the Officer in accordance with his contributions to
Illini’s success;
	 
	 	 	WHEREAS, Illini and Officer are willing, in order to induce the Officer to
remain an employee of Illini and Bank, and to provide the Officer a measure of
security with respect to his employment with Illini in the event of a change in
control of Illini so that the Officer will be in a position to act with respect
to a possible change in control of Illini in the best interests of Illini and
its shareholders without concern as to the Officer’s own financial security,
and therefore agree that employment of the Officer shall be terminable only in
accordance with Section II herein;
	 
	 	 	WHEREAS; Illini is willing, in order to compensate the Officer fairly for the
Officer’s contribution to the prosperity of Illini, and in order to induce the
Officer to remain in employment with Illini, to agree that Officer shall be
compensated in accordance with the terms and conditions herein.
NOW, THEREFORE, Illini, Bank, and Officer agree as follows:

SECTION I. EMPLOYMENT

	 	A.	 	Term. Illini shall continue to employ Officer as its President, and Bank
shall continue to employ Officer as its President until November 1, 2008,
(the “Term”), unless terminated prior to the expiration of the Term
pursuant to Section II herein.
	 
	 	B.	 	Compensation. As compensation for services provided to Illini and Bank
by Officer pursuant to this Agreement, Illini shall pay the Officer an
annual base salary of $135,000.00. On July 1, 2005, and annually
thereafter, Officers base salary will be adjusted to equal the
75th
percentile of banks of similar asset size according to the Illinois
Community Bank salary surveys.

 

 

	 	 	 	Adjustments to Officers base salary are subject to the approval of the Board
of Directors. It is expressly understood that the annual base salary of
Officer shall be allocated between Illini and Bank in accordance to time
devoted to each position. Officer will not participate in any incentive
program except as may be awarded by the Board of Directors on an arbitrary
basis. Such other compensation and benefit plans are hereinafter referred
to collectively as the “Compensation and Benefits Plans”, and exclude any
participation or rights that Officer may have been granted or offered to
Illini stock options, which rights, to the extent that they exist, are
waived by Officer. Officer shall be paid a $600.00 monthly automobile
allowance as reimbursement for the use of his personally owned automobile
and in addition, Officer shall be reimbursed for gasoline expense incurred
in official travel.
	 
	 	C.	 	Duties. Officer shall perform such duties and functions as are assigned
to him by the bylaws of Illini or Bank, as amended or restated by the
Board of Directors of Illini or by the Board of Directors of Bank. Illini
shall provide the Officers with a description of his duties at the
inception of his employment which shall remain unchanged until such time
as changes in duties or function are approved by Illini’s or Bank’s Board
of Directors. In the event of an actual or potential Change in Control
(as defined in Section II, H) of Illini, Officer shall perform his duties
and function in a manner that is consistent with the best interest of
Illini and its shareholders, without regard to the effect that the
potential or actual Change in Control may have on the officer personally.
	 
	 	D.	 	Duty of Loyalty. The Officer shall work full-time for Illini and Bank
only, or for a subsidiary thereof, provided that:

	 	1.	 	He may also engage in charitable, civic and other similar
activities;
	 
	 	2.	 	With the consent of the Board of Directors of Illini or Bank,
he may serve as a director of a business organization not competing
with the Illini or Bank; and
	 
	 	3.	 	He may make such investment and reinvestment in business
activities as shall not require a substantial portion of his time.

	 	E.	 	Duty Not To Disclose Confidential Information. The Officer acknowledges
that his relationship with Illini is one of high trust and confidence, and
that he has access to Confidential Information, as hereinafter defined, of
Illini and Bank. The Officer shall not directly or indirectly,
communicate, deliver, exhibit or provide Confidential Information to any
person, firm, partnership, corporation, organization or entity, except as
required in the normal course of

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	 	 	 	the Officer’s duties. The duties contained in this paragraph shall be
binding upon the Officer during the time that he is employed under this
Agreement and following the termination of such employment. Such duties
will not apply to any such Confidential Information that is or becomes in
the public domain through no action on the part of the Officer, is generally
disclosed to third parties by Illini without restriction on such third
parties, or is approved for release by written authorization of the Board of
Directors of Illini or Bank. The term “Confidential Information” shall mean
any and all confidential, proprietary, or secret information relating to the
Illini’s or Bank’s business, services, customers, business operations, or
activities and any and all trade secrets, products, methods of conducting
business, information, skills, knowledge, ideas, know-how or devices used
in, developed by, or pertaining to Illini’s’ or Bank’s business and not
generally known, in whole or in part, in any trade or industry in which
Illini is engaged.

Section II. TERMINATION

	 	A.	 	Term of Agreement. This Agreement shall run for an initial term of
four years from its inception. Subject to the approval of the Board of
Directors of Illini, or unless Illini terminates for cause, or Officer
terminates in accordance with Section II, the term of this agreement
shall be from November 1, 2004 through October 31, 2008. In the event
of a termination by Illini for cause, or by the Officer under Section
II, all obligations hereunder shall terminate except as specifically set
forth in the Agreement.
	 
	 	B.	 	Voluntary Termination by Officer. The Officer may voluntarily
terminate this Agreement by providing thirty days notice to Illini, in
which event Illini shall have no further obligation to the Officer
hereunder from the date of such termination except to pay Officer earned
but unpaid salary and benefits without imposing further condition or
reduction thereof, and the Officer shall have no further obligation to
Illini hereunder except the duty to not disclose Confidential
Information in accordance with Section E.
	 
	 	C.	 	Termination by Death of Officer. In the event the Officer’s
employment with Illini is terminated due to the Officer’s death, Illini
shall have no further obligation to the Officer, his hears or legatees
hereunder from the date of such termination, except to notify Officers
heirs or legatees of earned but unpaid salary and benefits due under the
Compensation and Benefit Plans and the value, terms and condition of
vested option rights and to pay Officer’s heirs or legatees amounts due
officer hereunder without imposing further condition or reduction
thereof and the heirs and legatees of the Officer shall have no further
obligation.

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	 	D.	 	Termination by Disability of Officer. In the event of the Officer’s
employment with the Illini is terminated due the Officer’s Permanent
Disability, Illini shall have no further obligation to the Officer
hereunder from the date of such termination except to notify the
employee of and pay at the direction of Officer or persons empowered by
Officer to direct payment earned but unpaid salary and benefits due
under the Compensation and Benefit Plans without imposing further
condition or reduction thereof, and Illini shall have no further
obligation to Officer or person empowered by Officer to direct payments
due under the Agreement. For purposes of this Agreement, the term
“Permanent Disability” means a physical or mental condition of the
Officer which:

	 	1.	 	Has continued uninterrupted for six months;
	 
	 	2.	 	Is expected to continue indefinitely; and
	 
	 	3.	 	Is determined by Illini to render the Officer incapable
of adequately performing his duties.

	 	 	 	In case of dispute in applying “Permanent Disability” to a physical or
mental condition of Officer, the test of disability used by the United
States Social Security Administration for the same or similar purposes
shall be the final standard for determining the “Permanent Disability” of
the Officer.
	 
	 	E.	 	Termination by Illini Without Cause. Illini may terminate this
Agreement without cause prior to the Firm Term as hereinafter defined by
providing thirty days notice to the Officer. In such event, the Officer
shall have no further obligation to Illini hereunder, except the duty to
not disclose Confidential Information in accordance with Section I, E,
and Illini shall have no further obligation to the Officer hereunder
from the date of such termination except (i) to pay to the Officer the
salary payments described in Section I, B, in the amount in effect on
the date of termination for a period of twelve months from the date of
termination, (ii) to pay to the Officer any other benefits under the
Compensation and Benefit Plans without imposing further condition or
reduction; and provided, however, that any benefit to be provided by a
Compensation and Benefit Plan may be provided by Illini through cash or
equivalent value or through a nonqualified arrangement or arrangements
if, in the judgment of Illini, permitting the Officer to participate in
such plan after the date of termination would adversely affect the tax
status of such plan, and if, in the judgment of the Officer, any
proposed cash or

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	 	 	 	equivalent value through a nonqualified arrangement or arrangement would
not materially increase the tax liabilities of Officer under federal or
state income tax or estate tax laws.
	 
	 	F.	 	Termination by Illini With Cause. Prior to or during the Firm Term,
Illini may terminate this Agreement for Cause. For purposes of this
Agreement, Cause shall mean;

	 	1.	 	The Officer’s willful and material breach of a provision
of this Agreement; or
	 
	 	2.	 	The Officer willfully engages in illegal conduct or gross
misconduct, which materially and demonstrably injures Illini;

	 	 	 	For purposes of determining whether “Cause” exists, no act or failure to
act, on the Officer’s part shall be considered “willful” unless it is
done, or omitted to be done, by the Officer in bad faith or without
reasonable belief by the Officer that his action or omission was in the
best interest of Illini. In the event of the Officer’s termination for
Cause, Illini will have no further obligation to the Officer under the
Agreement from the date of such termination.

     G. Termination Following Change in Control. In the event there is a
Change in Control of Illini, as defined in Section H below, during the Term,
and (1) within the period commencing twelve months prior to the date of a
Change in Control and ending twelve months following the date of the Change in
Control (the “Firm Term”), the Officer’s employment hereunder is terminated by
the Illini other than for Cause, a defined in Section II, F; or (2) within the
Firm Term, the Officer resigns from his employment hereunder upon thirty days
written notice given to Illini within thirty days following a change of
control, then the Officer shall have no further obligation to Illini hereunder,
except the duty not to disclose Confidential Information in accordance with
Section I, E, and Illini shall have no further obligation to the Officer
hereunder from the date of termination except (i) to pay to the Officer the
salary payments described in Section I, B, in the amount in effect on the date
of termination, for the balance of the term of the contract, (ii) to pay to the
Officer any other benefits due under the Compensation and Benefit Plans without
imposing further condition or reduction thereof.

H. Change in Control Defined. A Change in Control of the Illini shall have
occurred:

	 	1.	 	On the fifth day preceding the scheduled expiration date of a
tender offer by,
or exchange offer by any corporation, person, other entity or group
(other than
Illini or any of its wholly owned subsidiaries), to acquire Voting
Stock of Illini
if:

	 	i.	 	After giving effect to such offer such corporation,
person, other

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	 	 	 	Entity or group would own 50% or more of the Voting Stock of the
Illini;
	 
	 	ii.	 	There shall have been filed documents with the Securities and
Exchange Commission in connection therewith (or, if no such
Filing is required, public evidence that the offer has already
commenced); and such corporation, person, other entity or
group
has secured all required regulatory approvals to own or
control
50% or more of the Voting Stock of Illini;

	 	2.	 	If the shareholders of Illini approve a definitive agreement to
merger or
consolidate Illini with or into another corporation in a transaction
in which neither
Illini nor any of its wholly owned subsidiaries will be the
surviving corporation,
or to sell or otherwise dispose of all or substantially all of the
Illini’s assets to any
corporation, person, other entity or group (other than Illini or any
of its wholly
owned subsidiaries), and such definitive agreement is consummated;

	 	i.	 	(c) If any corporation, person, other entity or
group (other than Illini or
any of its wholly owned subsidiaries) becomes the Beneficial Owner (as
that term is defined in the Securities and Exchange Commission’s Rule
13d-3 under the Securities Exchange Act of 1934) of stock representing
50% or more of the Voting Stock of Illini; or
	 
	 	ii.	 	(d) If during any period of two consecutive years Continuing Directors
cease to comprise a majority of Illini’s Board of Directors.

	 	3.	 	The term “Continuing Director’ means:

	 	i.	 	Any member of the Board of
Directors of Illini at the
Beginning of any period of two consecutive years; and
	 
	 	ii.	 	Any person who subsequently becomes a member of the Board
of Directors of the Illini, if:

(i) Such person’s nomination for election or election
to the
Board of Directors of Illini or Illini is recommended
or approved
by resolution of a majority of the Continuing
Directors; or

(ii) Such a person is included a nominee in a proxy
statement
of the Illini distributed when a majority of the Board
of Directors

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of Illini or Illini consists of Continuing Directors.

	 	4.	 	“Voting Stock” means those shares of Illini entitled to vote
generally in the
election of directors.

I. Termination of Related Offices. The parties agree that in the event
Officer’s employment
by Illini is terminated for any reason, Officer will immediately resign from
all other positions
or offices held with Illini, including any directorships with Illini, or any
subsidiaries thereof.

Section III. MISCELLANEOUS

A. Assignment of Officer’s Rights. The Officer may not assign, pledge or
otherwise transfer
any of the benefits of this Agreement either before or after termination of
employment, and any
purported assignment, pledge or transfer of any payment to be made by “Illini”
hereunder
shall be subject to the claims of creditors of the Officer.

B. Agreements Binding on Successor. This Agreement shall be binding and inure
to the
benefit of the parties hereto and their respective successors, assign, personal
representatives,
heirs, legatees and beneficiaries.

C. Notices. Any notice required or desired to be given under this Agreement
shall be deemed
given if in writing and sent by first class mail to the Officer or Illini, at
his or its address as
set forth above, or to such other address of which either the Officer or Illini
shall notify the
other in writing.

D. Waiver of Breach. The waiver by either party of a breach of any provision
of this
Agreement shall not operate or be construed as a waiver of any subsequent
breach by either the Officer or Illini.

E. Intellectual Property Rights. Officer shall have sole and exclusive rights
over any
intellectual property created by him while employed under this Agreement, and
shall not
be subject to claims by Illini of rights they may have under equity or statute
arising from
Officer’s employment with Illini.

F. Entire Agreement. This Agreement contains the entire understanding of the
parties
and supersedes prior agreements between Office and Illini. It may be modified
or
amended only by an agreement in writing signed by the party against whom
enforcement
of any change or amendment is sought.

G. Severability of Provisions. If for any reason any paragraph, term or
provision of this
Agreement is held to be invalid or unenforceable, all other valid provisions
herein shall

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remain in full force and effect and all paragraphs, terms and provisions of
this Agreement
shall be deemed to be several in nature. An Offer of Employment containing
various
special terms and conditions of the Officer’s employment was made between
Illini and
Officer and is attached to this Agreement and incorporated hereinto by this
reference.

H. Governing Law. This Agreement is made in, and shall be governed by, the
laws of
the State of Illinois.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year first set forth above.

	 	 	 	 	 
	ILLINI CORPORATION	 	          (OFFICER)
	ILLINI BANK	 	 
	By:

	 	/s/ Thomas A. Black
	 	/s/ Gaylon E. Martin
	

	 	

	 	

	Its: Chairman	 	Date: November 9, 2004
	Date: November 1, 2004	 	 

8<PAGE>

                                                                    EXHIBIT 10.1

                                SECOND AMENDMENT
                             TO DEBTOR-IN-POSSESSION
                                CREDIT AGREEMENT

            This SECOND AMENDMENT TO DEBTOR-IN-POSSESSION CREDIT AGREEMENT (this
"AMENDMENT") is dated as of November 19, 2004 and entered into by and among
INTERMET CORPORATION, a Georgia corporation ("COMPANY"), THE SUBSIDIARIES OF
COMPANY LISTED ON THE SIGNATURE PAGES HEREOF AS BORROWERS (collectively, Company
and such Subsidiaries of Company are "BORROWERS" and each a "BORROWER"), THE
BANK OF NOVA SCOTIA, as Administrative Agent for the Lenders ("ADMINISTRATIVE
AGENT") and as a Lead Lender, DEUTSCHE BANK TRUST COMPANY AMERICAS, as
Collateral Agent and Co-Agent for the Lenders ("COLLATERAL AGENT") and as a Lead
Lender, and the undersigned Lenders, and is made with reference to that certain
Debtor-In-Possession Revolving Credit Agreement dated as of October 22, 2004 (as
amended, supplemented or otherwise modified to the date hereof, the "CREDIT
AGREEMENT"), by and among Borrowers, the Lenders, Administrative Agent and
Collateral Agent. Capitalized terms used herein without definition shall have
the same meanings herein as set forth in the Credit Agreement.

                                    RECITALS

            WHEREAS, Borrowers, Lead Lenders and the undersigned Lenders desire
to amend the Credit Agreement on the terms and conditions set forth below;

            NOW, THEREFORE, in consideration of the premises and agreements,
provisions and covenants herein contained, the parties hereto agree as follows:

SECTION 1. AMENDMENTS TO THE CREDIT AGREEMENT

      1.1   AMENDMENTS TO SUBSECTION 1.1.

            A. Subsection 1.1 of the Credit Agreement is hereby amended by
inserting the following definitions in appropriate alphabetical order:

                  "SECOND AMENDMENT" means that certain Second Amendment to
            Debtor-In-Possession Credit Agreement dated as of November 19, 2004
            by and among Borrowers, Agents, Lead Lenders and the Lenders party
            thereto.

                  "SECOND AMENDMENT EFFECTIVE DATE" has the meaning assigned to
            that term in the Second Amendment.

            B. Subsection 1.1 of the Credit Agreement is hereby further amended
by deleting the definition of "Incremental Commitment Effective Date" contained
therein in its entirety and substituting therefor the following:

                                       1
<PAGE>

                  "INCREMENTAL COMMITMENT EFFECTIVE DATE" means the earliest
            time as of which all conditions set forth in subsection 4.2 shall
            have been deemed satisfied or otherwise waived in accordance with
            the last paragraph of such subsection; provided, however, that
            solely for purposes of each of the definition of "Budget",
            subsection 6.1(xvi) and subsection 7.1(iv), each reference to
            "Incremental Commitment Effective Date" shall mean the date on which
            Borrowers shall have delivered the documents (in form and substance
            satisfactory to each Agent in its sole discretion) required to be
            delivered under clause (a) of the second sentence of subsection
            6.16.

      1.2   AMENDMENT TO SUBSECTION 4.2.

            Subsection 4.2 of the Credit Agreement is hereby amended by deleting
clause (iii) of the last paragraph of such subsection in its entirety and
substituting therefor the following:

            "(iii) Borrowers and Lenders hereby agree that (a) Borrowers shall
            be required to satisfy of all the conditions set forth in
            subsections 4.2A through 4.2K (other than subsection 4.2C) and
            subsection 4.2M on a date that is after the First Amendment
            Effective Date but prior to the 11th day after the First Amendment
            Effective Date and (b) failure to satisfy such conditions as
            required under clause (a) shall be an immediate Event of Default on
            such 11th day (it being understood and agreed that for purposes of
            this clause (iii), each reference to "Incremental Commitment
            Effective Date" in subsections 4.2A through 4.2K and the reference
            to "Closing Date" in subsection 4.2J shall be deemed to refer to the
            date on which all the conditions set forth in such subsections shall
            have been satisfied pursuant to this clause (iii)), provided,
            however, that the Mortgages required under subsection 4.2H of the
            Credit Agreement for Lynchburg Foundry Company's property at 1605 W.
            Main in Radford, VA and Ganton Technologies Inc.'s property in
            Addison, Illinois shall be required to be delivered to Collateral
            Agent on or prior to 5:00 p.m. New York City time on December 31,
            2004 (and any earlier date of delivery required in this paragraph
            shall not apply);".

      1.3   AMENDMENT TO SUBSECTION 4.3.

            Subsection 4.3B of the Credit Agreement is hereby amended by (i)
adding immediately prior to the ";" at the end of clause (iii) thereof the
phrase ", and shall not have been reversed, vacated or otherwise modified after
the entry thereof without prior written consent of each Agent and the Requisite
Lenders", and (ii) deleting clause (viii)(e) of such subsection and renumbering
clause (viii)(f) of such subsection as clause (viii)(e).

      1.4   AMENDMENT TO SUBSECTION 4.5.

            Subsection 4.5B of the Credit Agreement is hereby amended by (i)
adding immediately prior to the ";" at the end of clause (iii) thereof the
phrase ", and shall not have been reversed, vacated or otherwise modified after
the entry thereof without prior written consent of each Agent and the Requisite
Lenders", and (ii) deleting clause (v)(e) of such subsection and renumbering
clause (v)(f) of such subsection as clause (v)(e).

                                       2
<PAGE>

      1.5   AMENDMENT TO SUBSECTION 6.16.

            Subsection 6.16 of the Credit Agreement is hereby amended by adding
at the end thereof the following new sentence:

            "Notwithstanding anything to the contrary in this Agreement or in
            any limited waiver to this Agreement executed prior to the Second
            Amendment Effective Date, (a) the documents described in subsection
            4.2C (including Borrowers' business plan for the Chapter 11 Cases in
            form and substance satisfactory to each Agent in its sole
            discretion) shall be required to be delivered to Agents prior to
            5:00 p.m. New York City time on December 31, 2004 (and any earlier
            date of required delivery for such documents shall not apply); (b)
            the required daily transfer of amounts on deposit in Borrowers' Cash
            Management System described in subsection 4.1J and subsection 6.11
            shall not require such daily transfer from accounts with Standard
            Federal Bank N.A., Comerica Bank and Bank One, N.A. to the extent
            Borrowers' funds on deposit with such banks do not exceed
            $1,000,000, $500,000 and $250,000, respectively; and (c) the Control
            Agreements required from Standard Federal Bank National Association,
            Comerica Bank, Bank One, N.A., Bank of America, N.A., and U.S. Bank,
            N.A. pursuant to subsection 6.16 shall be required to be delivered
            to Collateral Agent prior to 5:00 p.m. New York City time on
            December 6, 2004 (and any earlier date of required delivery for such
            Control Agreements shall not apply); provided, that Collateral Agent
            may extend such date in writing.".

      1.6   AMENDMENT TO SUBSECTION 8.3.

            Subsection 8.3 of the Credit Agreement is hereby amended by (i)
adding immediately prior to the reference to "6.11" contained therein the word
"or" and (ii) adding immediately after the reference to "6.11" contained therein
the phrase ", clause (iii) of the last paragraph of subsection 4.2, the second
sentence of subsection 6.16".

SECTION 2. BORROWER'S REPRESENTATIONS AND WARRANTIES

            In order to induce the Lead Lenders and the Lenders to enter into
this Amendment and to amend the Credit Agreement in the manner provided herein,
Borrowers represent and warrant to each Lead Lender and Lender that the
following statements are true, correct and complete:

      2.1   CORPORATE POWER AND AUTHORITY. Each Borrower has all requisite
corporate power and authority to enter into this Amendment and to carry out the
transactions contemplated by, and perform its obligations under, the Credit
Agreement as amended by this Amendment (the "AMENDED AGREEMENT").

      2.2   AUTHORIZATION OF AGREEMENTS. The execution and delivery of this
Amendment has been duly authorized by all necessary action on the part of each
Borrower and the performance of the Amended Agreement has been duly authorized
by all necessary action on the part of each Borrower.

                                       3
<PAGE>

      2.3   NO CONFLICT. The execution and delivery by each Borrower of this
Amendment and the performance by each Borrower of the Amended Agreement do not
and will not (i) violate any provision of any law or any governmental rule or
regulation applicable to any Borrower or any of its Subsidiaries, or the
Organizational Documents of any Borrower or any of its Subsidiaries or any
order, judgment or decree of the Bankruptcy Court of any other Government
Authority binding on any Borrower or any of its Subsidiaries, (ii) conflict
with, result in a breach of or constitute (with due notice or lapse of time or
both) a default under any Contractual Obligation of any Borrower or any of its
Subsidiaries or any applicable order of the Bankruptcy Court, (iii) result in or
require the creation or imposition of any Lien upon any of the properties or
assets of any Borrower or any of its Subsidiaries (other than Liens created
under any of the Loan Documents in favor of Collateral Agent on behalf of the
Lenders), or (iv) require any approval of stockholders or any approval or
consent of any Person under any Contractual Obligation of any Borrower or any of
its Subsidiaries.

      2.4   GOVERNMENTAL CONSENTS. The execution and delivery by each Borrower
of this Amendment and the performance by each Borrower of the Amended Agreement
do not and will not require any Governmental Authorization.

      2.5   BINDING OBLIGATION. This Amendment has been duly executed and
delivered by each Borrower, and each of this Amendment and the Amended Agreement
is the legally valid and binding obligations of each Borrower enforceable
against each Borrower in accordance with its respective terms.

      2.6   INCORPORATION OF REPRESENTATIONS AND WARRANTIES FROM CREDIT
AGREEMENT. The representations and warranties contained in Section 5 of the
Credit Agreement are and will be true, correct and complete in all material
respects on and as of the Second Amendment Effective Date (as hereinafter
defined) to the same extent as though made on and as of that date, except to the
extent such representations and warranties specifically relate to an earlier
date, in which case they were true, correct and complete in all material
respects on and as of such earlier date.

      2.7   ABSENCE OF DEFAULT. As of the date hereof after giving effect
hereto, there exists no Event of Default or Potential Event of Default under the
Credit Agreement.

      2.8   FINAL BORROWING ORDER. The Final Borrowing Order is in full force
and effect and has not been stayed by the Bankruptcy Court or any other court of
competent jurisdiction and has not been reversed, vacated or otherwise modified
after the entry thereof.

SECTION 3. CONDITIONS TO EFFECTIVENESS

            Section 1 of this Amendment shall become effective on the date (such
date being referred to herein as the "SECOND AMENDMENT EFFECTIVE DATE") on which
(i) Agents shall have received duly executed copies of this Amendment from each
Borrower, each Lead Lender and Requisite Lenders and (ii) the provisions of the
last paragraph of subsection 4.2 (as amended by this Amendment) that are
required to be satisfied prior to the 11th day after the First Amendment
Effective Date shall have been satisfied.

                                       4
<PAGE>

SECTION 4. ACKNOWLEDGEMENT AND CONSENT

            Each Borrower hereby acknowledges that such Borrower has read this
Amendment and consents to the terms hereof and further hereby confirms and
agrees that, notwithstanding the effectiveness of this Amendment, the
obligations of such Borrower under each of the Loan Documents to which such
Borrower is a party shall not be impaired and each of the Loan Documents to
which such Borrower is a party are, and shall continue to be, in full force and
effect and are hereby confirmed and ratified in all respects.

SECTION 5. MISCELLANEOUS

      5.1   REFERENCE TO AND EFFECT ON THE CREDIT AGREEMENT AND THE OTHER LOAN
            DOCUMENTS.

            A. On and after the Second Amendment Effective Date, each reference
in the Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or
words of like import referring to the Credit Agreement, and each reference in
the other Loan Documents to the "Credit Agreement", "thereunder", "thereof" or
words of like import referring to the Credit Agreement shall mean and be a
reference to the Amended Agreement.

            B. Except as specifically amended by this Amendment, the Credit
Agreement and the other Loan Documents shall remain in full force and effect and
are hereby ratified and confirmed.

            C. The execution, delivery and performance of this Amendment shall
not constitute a waiver of any provision of, or operate as a waiver of any
right, power or remedy of any Agent or any Lender under, the Credit Agreement or
any of the other Loan Documents.

      5.2   FEES AND EXPENSES. Each Borrower acknowledges that all costs, fees
and expenses as described in subsection 10.2 of the Credit Agreement incurred by
Administrative Agent and Collateral Agent and their respective counsel
(including, without limitation, O'Melveny & Myers LLP and Wachtell, Lipton,
Rosen & Katz) with respect to this Amendment and the documents and transactions
contemplated hereby shall be for the account of Borrowers.

      5.3   HEADINGS. Section and subsection headings in this Amendment are
included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purpose or be given any substantive effect.

      5.4   APPLICABLE LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT
LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

      5.5   COUNTERPARTS. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and

                                       5
<PAGE>

delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument; signature pages may be detached from
multiple separate counterparts and attached to a single counterpart so that all
signature pages are physically attached to the same document.

                [Remainder of this page intentionally left blank]

                                       6
<PAGE>

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

            BORROWERS:

                                            INTERMET CORPORATION

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            ALEXANDER CITY CASTING COMPANY, INC.

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            CAST-MATIC CORPORATION

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            COLUMBUS FOUNDRY, L.P.

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            DIVERSIFIED DIEMAKERS, INC.

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                      S-1
<PAGE>

                                            GANTON TECHNOLOGIES INC.

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            INTERMET HOLDING COMPANY

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            INTERMET ILLINOIS, INC.

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            INTERMET INTERNATIONAL, INC.

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            INTERMET U.S. HOLDING, INC.

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            IRONTON IRON, INC.

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                      S-2
<PAGE>

                                            LYNCHBURG FOUNDRY COMPANY

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            NORTHERN CASTINGS CORPORATION

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            SUDBURY, INC.

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            SUDM, INC.

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            TOOL PRODUCTS, INC.

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                      S-3
<PAGE>

                                            WAGNER CASTINGS COMPANY

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                            WAGNER HAVANA, INC.

                                            By: /s/ Alan J. Miller
                                                -------------------
                                                Name: Alan J. Miller
                                                Title:  Vice President

                                      S-4
<PAGE>

AGENTS AND LENDERS:

                              THE BANK OF NOVA SCOTIA,
                              as Administrative Agent and as a Lead Lender and a
                              Lender

                              By:/s/ Ronald Dooley
                                 --------------------
                                 Name: Ronald Dooley
                                 Title: Director

                              DEUTSCHE BANK TRUST COMPANY AMERICAS,
                              as Collateral Agent and as a Lead Lender and a
                              Lender

                              By:/s/ Frank Fazio
                                 --------------------
                                 Name: Frank Fazio
                                 Title: Director

                                      S-5

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