Document:

Prepared by MERRILL CORPORATION

   EXHIBIT 4.9  

The Directors

UNOVA U.K. Limited

Cincinnati Machine U.K. Limited

Intermec Technologies U.K. Limited

UNOVA, Inc.

2nd Floor Sovereign House

Vastern Road

Reading

RG1 8BT 

13
September 2001 

Dear
Sirs 

    Barclays
Bank PLC (the "Bank") is pleased to offer to provide in aggregate short term facilities of up to £14,000,000 (fourteen million pounds sterling) to UNOVA U.K.
Limited, Cincinnati Machine U.K. Limited and Intermec Technologies U.K. Limited (together the "Borrowers" and each a "Borrower") subject to the terms and conditions set out below. 

    Capitalised
words used below shall have the meanings given to them in clause 17 and elsewhere in this Facility Letter. 

    The
Schedules attached hereto form part of the terms and conditions of this Facility Letter. 

    Subject
to satisfaction of the conditions set out in clause 18 below, the Facility will be available for utilisation by the Borrowers, subject to the following terms and
conditions: 

    1.  Options
Available Within and Utilisation of the Facility 

    1.1 The
Facility may be utilised by way of the following options and in accordance with the provisions of the Schedules related thereto: 

sterling
and/or currency money market loans (the "Sterling/Currency MML") (see Schedule A) and/or bonds, guarantees and indemnities (the "Ancillary Facility") (see
Schedule B). 

    Within
the Facility, the aggregate of the liabilities due, owing or incurred thereunder shall not at any time exceed £14,000,000 (or its currency equivalent). Within the
Ancillary Facility, the aggregate of the bonds, guarantees and indemnities issued thereunder shall not at any time exceed £6,000,000 (or its currency equivalent). 

    1.2 The
sterling equivalent of the currency or currencies utilised or available to be utilised under the Facility may be calculated by the Bank at any time by reference
to the Bank's spot rate of exchange in the London Foreign Exchange Market for the sale of the relevant currency or currencies for sterling. 

    2.  Availability

    If
on the day of utilisation: 

    (a) no
Event of Default or Potential Event of Default has occurred and is continuing; and 

    (b) the
representations and warranties detailed within clause 9 below are true on such day, 

    then
the Facility is available for utilisation until the second anniversary of the date of acceptance of this letter (the "Expiry Date") and no liability or liabilities may extend
more than three months beyond the Expiry Date. 

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    Shortly before the first anniversary of the acceptance of this offer and annually thereafter the Bank agrees to consider in its absolute discretion an extension of the Expiry Date by
a further year if
requested in writing by the Borrowers. The Bank's agreement to any extension and/or change in any terms and conditions will be notified in writing to the Borrowers. 

    3.  Security
and Guarantees 

    3.1 All
indebtedness owing by the Borrowers to the Bank is to be (i) guaranteed by the cross guarantees which are to have been executed in the Bank's standard
form (with such amendments thereto as the Bank and the Borrowers may agree) by each Borrower and UNOVA, Inc. (together the "Guarantors" and each a "Guarantor") and (ii) secured by
(a) the debentures which are to have been executed in the Bank's standard form (with such amendments thereto as the Bank and the Borrowers may agree) by each Borrower and (b) legal
charges over the Properties which are to have been executed in the Bank's standard form (with such amendments thereto as the Bank and the Borrowers may agree) by UNOVA U.K. Limited and Cincinnati
Machine U.K. Limited. 

    3.2 The
Bank may from time to time require the Properties and the Trade Debtors to be professionally valued. The Borrower will pay the costs of one such valuation per
Property per annum together with the costs of any such valuation of the Properties and the Trade Debtors carried out where the Bank suspects that a Potential Event of Default has occurred and is
continuing. 

    Mandatory
Prepayment 

    Each
Borrower and UNOVA, Inc. undertakes that within 3 Business Days of receipt of the Disposal Proceeds, it shall (a) apply, or procure the application, in repayment of
outstanding liabilities under the Sterling/Currency MML, an amount equal to the Disposal Proceeds by such amount and (b) reduce and cancel the Sterling/Currency MML by an amount equal to the
aggregate open market value of each of the Properties disposed of (whether by asset sale or by sale of shares in an entity owning any such Properties) in connection with a disposal referred to in
sub-paragraph (b) of the definition of "Permitted Disposal". 

    Following
a cancellation of the Sterling/Currency MML by the amount referred to in clause 4.1, the Borrowers may request that a portion of the cancelled amount of the
Sterling/Currency MML become available for redrawing. Upon receipt of such request the Bank will enter into discussions with the Borrowers and may in its absolute discretion agree that such portion
will become available for redrawing. 

    5.  Cancellation

    Any
undrawn part of the Facility may be cancelled by the Borrowers in minimum amounts of £500,000 and multiples of £50,000 subject to the Borrowers: 

    (a) giving
the Bank not less than seven Business Days' notice in writing (such notice, once given, shall be irrevocable); and 

    (b) paying
to the Bank a cancellation fee of 1% of the amounts cancelled together with any accrued non-utilisation fee thereon if such cancellation arises
as a result of the Borrowers obtaining a replacement facility for this Facility from a bank or financial institution which is not part of the group comprising the Bank and its subsidiary undertakings. 

    The
non-utilisation fee will then cease to accrue on such cancelled amounts. Amounts which are cancelled will no longer be available for utilisation. 

    6.  Change
of Circumstances 

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    6.1 In the event of: 

    (a) any
change in applicable law, regulation or practice resulting in the Bank being subjected to any new or additional tax, levy, duty, charge, penalty, deduction or
withholding of any nature (other than tax on the Bank's overall net profits and gains), or 

    (b) any
existing requirements of any central bank, governmental, fiscal, monetary, regulatory or other authority in any applicable jurisdiction affecting the conduct of
the Bank's business being changed or any new requirements being imposed (whether or not having the force of law), including, without limitation, any resulting from the introduction or operation of the
euro and a request or requirement which affects the manner in which the Bank allocates capital resources to its commitments, including its obligations under this Facility Letter, 

    and
the result is in the sole opinion of the Bank (directly or indirectly) to increase the cost to the Bank of funding, making available or maintaining the Facility or to reduce the
amount of any payment received or receivable by the Bank or to reduce the effective return to the Bank, then the Borrowers
shall pay to the Bank on demand such sum as may be certified in writing by the Bank to the Borrowers as necessary to compensate the Bank for such increased cost or such reduction. 

    6.2 The
Borrowers may, at any time within six weeks after the date of certification from the Bank under clause 6.1, prepay all amounts outstanding under the
Facility without penalty and without incurring any cancellation fee (subject to clause 16.3(iv)), by giving not less than five Business Days' irrevocable notice to the Bank to that effect
specifying the prepayment date. The Borrowers shall be obliged to prepay to the Bank all amounts outstanding under the Facility on such date, together with all interest accrued to the date of actual
payment and all other sums due to the Bank hereunder. Unless prepayment is made within such period of six weeks, an amount equal to such increased cost or such reduction will be payable by the
Borrowers under the preceding sub-clause from the date of such certification. 

    6.3 Reference
to the cost of funds/sterling deposits and to the London Interbank Market shall, if such cost ceases to be market practice/ordinarily used by the Bank for
the purpose of calculating interest on facilities of this kind or such market no longer exists in comparable form, be construed as meaning the appropriate and reasonable alternative cost or source of
funds as the case may be, as determined by the Bank. 

    7.  Fees

    7.1 An
arrangement fee of £70,000 will be payable by the Borrowers to the Bank on acceptance of this offer. 

    7.2 A
non-utilisation fee at the rate of 0.5% per annum calculated on a daily basis from the date of the Borrowers' acceptance of this offer on the undrawn portion of
the Facility, will be payable to the Bank quarterly in arrears and on the Expiry Date. 

    7.3 A
renewal fee at the rate of 0.25% on the available amount of the Facility will be payable by the Borrowers to the Bank annually in advance with effect from the
first anniversary of the Borrowers' acceptance of this offer. 

    7.4 Any
fee referred to in clauses 7.1, 7.2 or 7.3 is exclusive of any VAT which might be chargeable in connection with that fee. If any VAT is so chargeable, it shall
be paid by the Borrowers to the Bank at the same time as it pays the relevant fee. 

    8.  Legal,
Valuation and other Expenses 

    Any
legal and valuation fees and expenses (including documentation fees) (including any applicable VAT) and other out of pocket expenses (including any applicable VAT) incurred by the
Bank in connection with the preparation, execution and implementation of this Facility Letter (and the 

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documents referred to herein) and the enforcement and preservation by the Bank of its rights under this Facility Letter or such documents will be reimbursed by the Borrowers on demand by the Bank on a
full indemnity basis (whether or not the Facility is drawn down) and may be debited to the Borrowers' account with the Bank without further authority from the Borrowers. Other than in connection with
enforcement or preservation, the Bank will consult with the Borrowers prior to incurring such fees and expenses and shall provide estimates to the Borrowers. 

    9.  Representations
and Warranties 

    9.1 By
accepting this Facility Letter, each Borrower makes the representations and warranties contained in (a) to (g) below, and each Guarantor makes the
representations and warranties contained in (h) below: 

    (a) it
has the necessary corporate power and authority to borrow the full amount of the Facility on the terms and conditions set out in this Facility Letter and to
perform and observe its obligations under this Facility Letter and it has obtained all necessary approvals, authorisations, consents or clearances of all governmental, judicial or regulatory bodies
and authorities required in connection with the execution, delivery and performance hereof and the carrying out of the transactions contemplated in this Facility Letter; 

    (b) there
is no law, decree or similar enactment binding on it and no provision in any corporate document, mortgage, indenture, trust deed, contract or agreement
binding on it or affecting its property which would conflict with or prevent it from borrowing under the Facility, or which would prevent it from observing any of its obligations in this Facility
Letter; 

    (c) neither
its acceptance of this offer nor the performance by it of its obligations or the exercise of any of its rights under the terms of this Facility Letter will
result in the existence of, or oblige such Borrower to create, any security interest in favour of any third party (other than the Bank) over the whole or any part of the undertaking or assets, present
or future, of such Borrower and there are no subsisting mortgages, charges or other encumbrances affecting any of the undertaking, property assets or revenues of such Borrower other than those
detailed within clause 10.1(a) below; 

    (d) it
is not in breach of any of the limits or restrictions or obligations imposed by any other agreement or instrument and no Event of Default has occurred and is
continuing; 

    (e) to
the best of its knowledge, information and belief, having made all reasonable enquiries, there are no legal or other proceedings pending or threatened before any
court, tribunal, commission or other regulatory authority involving it which are likely to be adversely determined against it and which, if adversely determined, could reasonably be expected to have a
Material Adverse Effect; 

    (f)  all
factual or financial information provided by or on its behalf to the Bank for the purpose of obtaining the Facility was true, complete and accurate in all
material respects at the time it was provided and all forecasts and opinions provided to the Bank for such purpose were honestly made on reasonable grounds after careful enquiry by such Borrower and
the most recent accounts provided by the Borrower pursuant to clause 11.1(a) below were prepared in accordance with the laws of its jurisdiction of incorporation and give a true and fair view
of the state of its affairs and disclose all liabilities and unrealised or expected losses required to be disclosed under generally accepted accounting practices; 

    (g) no
event has occurred between the date to which its latest audited consolidated accounts available to the Bank were prepared and the date on which this warranty is
given or deemed to be given which could reasonably be expected to have a Material Adverse Effect; and 

    (h) each
Guarantor has the necessary corporate power and authority to execute and observe its respective obligations under the guarantees and the security referred to
in clause 3 above which constitute that Guarantor's valid and binding obligations and no Guarantor is or would be in breach of 

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any enactment or contractual document of whatsoever nature by reason of such execution and observance and the representations set out in (d), (e), (f) and (g) of this clause 9.1
would remain true if reference therein to each Borrower included reference to each Guarantor. 

    9.2 Each
Borrower and Guarantor shall be deemed to repeat the representations and warranties contained in this clause 9 on the day of each utilisation (and in
any event at intervals not exceeding six months) by reference to the circumstances then existing. 

    10. Covenants

    10.1 By
accepting this Facility Letter, each Borrower undertakes for so long as any liability remains outstanding hereunder that, save with the prior written consent of
the Bank: 

    (a) no
Borrower nor any UK Subsidiary will create or agree to create or permit to subsist (other than to the Bank) any Encumbrance on the whole or any part of its
undertaking, property, assets or revenues, present or future, including uncalled capital, save that this restriction will not be breached by any of the following: 

    (i)  the
continuance of existing Encumbrances full details of which have been disclosed to the Bank in writing prior to the date of this Facility Letter, provided that
the maximum principal amount outstanding and secured by any such Encumbrance is not at any time increased; or 

    (ii) the
acquisition, after the date of this Facility Letter, of companies and/or properties having or being subject to existing secured borrowings, provided that the
maximum principal amount for which such Encumbrance was originally given is not at any time increased and such Encumbrance is discharged or released within 180 days after the date of such
acquisition; 

    (iii) any
Encumbrance over plant, machinery or equipment granted solely in connection with financing or operating leasing arrangements permitted under
paragraph (c) of the definition of Permitted Disposal; 

    (b) no
Borrower nor any UK Subsidiary will give any guarantee, bond or indemnity, or make available any new loan or financial accommodation to any person or increase
the amount or extend the duration or otherwise alter in any material respect the terms of any such existing loans or financial accommodation, except that this clause 10.1(b) shall not apply to
any Permitted Loan; 

    (c) no
Borrower nor any UK Subsidiary will sell, transfer or otherwise dispose of the whole or any part of its undertaking, property, assets or revenues, whether by a
single transaction or a number of transactions relating to assets the value of which, when aggregated with the value of all other sales, transfers or disposals of assets made by each Borrower and its
UK Subsidiaries in the same accounting reference period, would exceed £3,000,000, calculated at the higher of market value or net book value (such aggregate figure being proportionately
reduced or increased for any such period which is less than 360 days or more than 370 days), except that this clause 10.1(c) shall not apply to any Permitted Disposal; 

    (d) no
Borrower nor any UK Subsidiary will make any material investment in shares, securities or debentures (whether secured or unsecured) of a company or in a
business. For the purpose of this clause 10.1(d) "material" shall mean an amount in excess of £1,000,000 (gross cost), or the equivalent in other currencies, in the case of a single
transaction or an amount which, when aggregated with all other investments made by each Borrower and its UK Subsidiaries in the same accounting reference period,
exceeds £1,000,000 (gross cost), or the equivalent in other currencies (such figure being proportionately reduced or increased for any such period which is less than 360 days or
more than 370 days); 

    (e) each
Borrower shall maintain and procure that each of its Subsidiaries maintains adequate insurance on and in relation to its business and assets with reputable
underwriters or insurance 

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companies which are financially sound and having a rating of at least A+ or better by Best Rating Guide against such risks to the extent usual for persons carrying on a business such as that carried
on by such Borrower or (as the case may be) such Subsidiary; 

    (f)  each
Borrower will forthwith, upon becoming aware of it, inform the Bank of any litigation, arbitration or administration proceeding pending or, to the best of its
knowledge, information and belief, threatened against any Borrower or any Subsidiary which could reasonably be expected to have a Material Adverse Effect; 

    (g) each
Borrower will forthwith, upon becoming aware of it, inform the Bank of the occurrence of any Event of Default or Potential Event of Default and also inform the
Bank of any steps taken or proposed to be taken to remedy or mitigate the effect of any such event; 

    (h) no
Borrower will declare or pay any dividend or make any distribution to its shareholders in respect of any accounting reference period without the Bank's prior
written consent, which shall not be unreasonably withheld or delayed if (i) at the times that such dividend is both declared and paid, or such distribution is made, there are no outstanding
drawings under the Sterling/Currency MML and (ii) the Operating Cashflow of such Borrower is positive for such accounting reference period; 

    (i)  (other
than Permitted Loans) no Borrower will make any loans or advances to, or enter into any management, consultancy, sale or other agreement of whatever kind
with its Parent or any other Subsidiary of its Parent except on arms' length terms for good commercial reasons or in the ordinary course of business and no material amendment shall be made to any such
loan, advance or agreement existing at the date hereof which would cause such loan, advance or agreement to infringe this clause 10.1(i); 

    (j)  each
Borrower's obligations under this Facility Letter shall at all times rank at least pari passu with all other
present and future unsecured and unsubordinated indebtedness of such Borrower, except for any liabilities which would be accorded preferential ranking by statute in a winding-up; 

    (k) the
claims of the Bank against each Borrower under this Facility Letter shall at all times rank prior to the claims of all other Borrowers and Subsidiaries against
such Borrower; and 

    (l)  no
Borrower will make, and or procure that any of its Subsidiaries will make, any material change in the scope or nature of its business which would constitute a
material change in the business of the Borrowers taken as a whole. 

    10.2 By
accepting this Facility Letter, each Borrower undertakes for so long as any liability remains outstanding hereunder that, save with the prior written consent of
the Bank, the amount of outstanding drawings hereunder shall not at any time exceed: 

    70%
of the value of the Properties; or 

    66%
of the face value of the Eligible Trade Debtors of Landis Lund (a division of UNOVA U.K. Limited); or 

    (c) 50%
of the face value of the Eligible Trade Debtors of Lamb (a division of UNOVA U.K. Limited); or 

    (d) a
percentage of the face value of the Eligible Trade Debtors of Cincinnati Machine U.K. Limited to be determined by the Bank; or 

    (e) a
percentage of the face value of the Eligible Trade Debtors of Intermec Technologies U.K. Limited to be determined by the Bank. 

    In
the case of the Properties such value shall be determined from time to time on an open market value basis by professional valuers acceptable to the Bank. 

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    11. Information 

    11.1 Each
Borrower undertakes to provide to the Bank: 

    copies
of its audited consolidated accounts (including profit and loss account and balance sheet) as soon as they are available and not later than 180 days from the end of each
accounting reference period together with its quarterly unaudited management accounts as soon as available and within 60 days of the end of each financial quarter except the final quarter which
is to be received within 90 days; 

    (b) copies
of its monthly aged trade debtor analysis as soon as available and within 30 days of the end of each calendar month; 

    (c) copies
of any circular issued to its shareholders or holders of loan capital at the same time as received by its shareholders or holders of loan capital; and 

    within
7 days following request (unless otherwise agreed by the Bank), any other information which the Bank may reasonably request from time to time. 

    11.2 UNOVA, Inc.
undertakes to provide to the Bank: 

    copies
of its audited consolidated accounts (including profit and loss account and balance sheet) as soon as they are available and not later than 90 days from the end of each
accounting reference period together with its quarterly unaudited management accounts as soon as available and within 60 days of the end of each financial quarter except the final quarter which
is to be received within 90 days; 

    a
copy of each covenants compliance certificate delivered to Co-Agents under Section 5.2(d) of the US Facility Agreement, at the same time as delivered to such
Co-Agents; and 

    (c) within
7 days following request (unless otherwise agreed by the Bank), any other information which the Bank may reasonably request from time to time. 

    11.3 In
the event of any Borrower adopting any proposed change in accounting principles for the purposes of its audited consolidated accounts from those on the basis of
which its most recent audited consolidated accounts as at the date of this Facility Letter were prepared, then, if the Bank is of the opinion that any such change materially affects any of the
financial covenants detailed in clause 10.2 above, it shall be entitled to require such financial covenants to be amended in such manner as it may
deem appropriate to reflect such change (but so as to place no more onerous obligation on the Borrowers than the existing financial covenants as if no such change in accounting principles had
occurred). 

    12. Payments

    12.1 All
payments by each Borrower, whether of principal, interest or otherwise, shall be made to the Bank (or such other bank as the Bank may specify from time to
time) for value on the due date by such times and in such funds as the Bank may specify as being customary at the time for settlement of transactions in the relevant currency in the place for payment,
without set-off or counterclaim and free of any deduction or withholding for or on account of tax unless such Borrower is compelled by law to make such a payment subject to the deduction
or withholding of tax. 

    12.2 If
a Borrower is compelled by law to make any such deduction or withholding, or the Bank is compelled by law to make any payment in respect of tax (other than tax
on overall net income), in each case from or in respect of any amount payable or paid by such Borrower hereunder, such Borrower will pay to the Bank such additional amount as is required to ensure
that the Bank receives and retains (free from any liability in respect of any such deduction or withholding) a net amount equal to the full amount which it would have received if no such deduction,
withholding or payment had been made. 

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    12.3 All taxes required by law to be deducted or withheld by a Borrower from any amounts payable or paid hereunder shall be paid by such Borrower to the appropriate
authority within the time allowed for such payment under applicable law and such Borrower shall, within 30 days of the payment being made, deliver to the Bank evidence reasonably satisfactory
to the Bank (including all relevant tax receipts) that the payment has been duly remitted to the appropriate authority. 

    12.4 The
Bank shall be entitled to adjust the dates for the making of payments under the Facility, and the duration of interest periods, where in the Bank's opinion it
is necessary to do so in order to comply with the practice from time to time prevailing in the London Interbank Market or any other financial market relevant for the purposes of the Facility. 

    13. Events
of Default 

    In
the event of: 

    (a) failure
by any Borrower to make any repayment of principal, or payment of interest or other money, under this Facility Letter on its due date unless such failure is
caused solely by technical or administrative delays and repayment or payment is made within three Business Days of the due date; or 

    (b) (i) a
breach by any Borrower in the performance of any of its obligations under clauses 9, 10.1 (other than under (e) or (f) thereof) or 11;
or 

    (ii) a
breach by any Borrower in the performance of any of its obligations under clause 10.2, if such breach (if sufficient funds are available for drawing under
the US Facility or are otherwise available to UNOVA, Inc. and/or its Subsidiaries to remedy such breach) shall continue unremedied for three Business Days; or 

    (iii) a
breach by any Borrower in the performance of its obligations under clauses 10.1 (e) or (f), of this Facility Letter if such breach (if capable of remedy)
shall continue unremedied for 7 days; or 

    (iv) a
breach by any Borrower or any Guarantor in the performance of any other obligations, covenants or undertakings under this Facility Letter or any guarantee and/or
security held by the Bank for the Facility and such breach (if capable of remedy) shall continue unremedied for 21 days; or 

    (c) any
approval, authorisation, consent or clearance which is required either to ensure that this Facility Letter and the security and the guarantees referred to in
clause 3 above are valid, binding and enforceable or to enable the obligations thereby created to be duly performed, ceasing to be in full force and effect or it becoming unlawful for the
Borrower or any other person to perform all or any of its obligations under this Facility Letter or under any security or guarantee referred to in clause 3 above, or any such document not being
or ceasing to be legal, valid and binding on it; or 

    (d) a
petition being presented, an order being made or a meeting being convened or an effective resolution being passed, for winding up any Borrower or
UNOVA, Inc. (or any Subsidiary where such action could reasonably be expected to have a Material Adverse Effect) (except for the purpose of a reconstruction or amalgamation while solvent on
terms previously approved in writing by the Bank), or a petition being presented or an order being made for the administration of any Borrower or UNOVA, Inc. (or any Subsidiary where such
action could reasonably be expected to have a Material Adverse Effect); or 

    (e) an
encumbrancer taking possession or an administrator, liquidator, provisional liquidator, receiver, manager, trustee, sequestrator or similar officer being
appointed of all or any of the assets of any Borrower or UNOVA, Inc. (or any Subsidiary where such action could reasonably be expected to have a Material Adverse Effect); or 

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    (f)  a distress, execution, attachment or other legal process being levied, enforced or sued out against any of the assets of any Borrower or UNOVA, Inc. (or any
Subsidiary where such action could reasonably be expected to have a Material Adverse Effect) and not being discharged or paid in full within five Business Days; or 

    (g) any
Borrower or UNOVA, Inc. (or any Subsidiary where such action could reasonably be expected to have a Material Adverse Effect) suspending payment of its
debts or being unable to pay its debts as they fall due, or being deemed, under Section 123 of the Insolvency Act 1986, to be unable to pay its debts; or 

    (h) any
Borrower or UNOVA, Inc. (or any Subsidiary where such action could reasonably be expected to have a Material Adverse Effect) proposing or entering into a
voluntary arrangement (within the meaning of Section 1 of the Insolvency Act 1986) or taking or being subjected to any proceedings under any law, or commencing negotiations with one or more of
its creditors, for the readjustment, rescheduling or deferment of its debts generally, or proposing or entering into any general assignment or composition with or for the benefit of its creditors; or 

    (i)  control
of any Borrower or UNOVA, Inc. passing or having passed, whether by virtue of any agreement, offer, scheme or otherwise, to any person or persons
(including institutions or companies), either acting individually or in concert, without the prior written consent of the Bank, ("control" having the meaning ascribed to it in relation to a body
corporate by Section 840 of the Income and Corporation Taxes Act 1988) provided that an intra-group re-organisation will not give rise to a breach of this
clause 13(i) so long as each Borrower remains a wholly-owned Subsidiary of UNOVA, Inc. (whether directly or indirectly); or 

    (j)  any
Borrower, UNOVA, Inc. or any Subsidiary ceasing or threatening to cease to carry on all or a substantial part of its business or operations, or selling,
transferring or otherwise disposing of the whole or a substantial part of its undertaking or assets, whether by a single transaction or a number of transactions, where such cessation could reasonably
be expected to have a Material Adverse Effect, without the prior written consent of the Bank; or 

    (k) any
default shall occur under any agreement or instrument under or pursuant to which any other financial indebtedness of UNOVA, Inc. or any of the Borrowers
(A) the individual outstanding principal amount of which exceeds $5,000,000 (or its currency equivalent) or (B) the aggregate principal amount of which exceeds $5,000,000 (or its
currency equivalent), and such default shall continue for more than the period of grace (if any) therein specified, if the effect thereof (with or without the giving of notice or lapse of time or
both) is:- 

    (X) to
accelerate, or to permit the holders of any such financial indebtedness to accelerate, the maturity of any such financial indebtedness; or 

    (Y) to
result in any such financial indebtedness being declared due and payable or be required to be prepaid (other than by regularly scheduled required prepayments)
prior to the stated maturity thereof; 

    (provided
always that for the purposes of this clause 13(k), the making of a demand for repayment under the Overdraft Facility Letter shall not constitute a breach of this
clause 13(k), nor an Event of Default or Potential Event of Default hereunder, if such demand is satisfied in full within 7 days of the making thereof, whether by the making of a
utilisation under this Facility Letter or otherwise); or 

    (l)  there
occurs an event having a Material Adverse Effect; or 

    (m) the
cessation for any reason of any consent, authorisation, licence and/or exemption which is required to enable any Borrower, Subsidiary or any Guarantor to carry
on all or any material part of its business, or the taking by any governmental, regulatory or other authority of any action in relation to 

9

 

any Borrower, Subsidiary or any Guarantor (whether or not having the force of law) which, in any such case, could reasonably be expected to have a Material Adverse Effect; or 

    (n) any
Guarantor giving or purporting to give notice to determine its liability under any guarantee referred to in clause 3 above; or 

    (o) any
event occurring in relation to any Borrower under the laws of any other applicable jurisdiction which has an effect substantially similar to any of the events
specified in this clause 13; or 

    (p) any
representation or warranty made by any Borrower or UNOVA, Inc. under this Facility Letter or for the purpose of obtaining the Facility, being incorrect
in any material respect as at the date on which it is made or deemed to be made, 

    then
whilst any such Event of Default is continuing, all moneys owing under the Facility shall become repayable forthwith upon written demand by the Bank at any time and no further
utilisation may be made under the Facility. The Bank may, at any time after such demand call for payment of full cash cover for all outstanding liabilities under the Ancillary Facility. At any time
whilst an Event of Default is continuing the Bank may enforce its rights to appoint an administrative receiver or other enforcement rights under any security provided by the Borrowers in connection
with this Facility and may make demand of any Guarantor. 

    The
Bank reserves the right, at any time following a demand under this clause, to purchase with sterling any currency necessary to convert any amounts outstanding under the Facility
together with interest accrued thereon, to sterling whereupon the Borrowers shall then become liable to pay the Bank forthwith the relevant sterling amounts, together with all costs and expenses
incurred by the Bank. 

    14. Interest
on an Overdue Amount 

    14.1 Any
money payable under this Facility Letter which is not paid when due by the Borrowers shall bear interest on a daily basis from the due date to the date of
actual payment. Such interest shall be calculated by reference to successive default interest periods of such duration as the Bank may from time to time select, except that the first such period
relating to any overdue amount in respect of the Sterling/Currency MML shall be such as to mature at the end of the interest period current at the time when such amount became due. 

    14.2 Interest
shall be charged at the rate per annum determined by the Bank to be equal to 1% above the rate which would otherwise have been applicable to such overdue
amount under the provisions of the relevant Schedule if such amount had been non-overdue principal (except that in the case of any amount that does not have an applicable interest rate hereunder the
rate charged shall be 3% per annum over the Bank's Base Rate current from time to time). Interest so accrued shall be due on demand or (in the absence of demand) on the last day of the default
interest period in which it accrued and, if unpaid, shall be compounded on the last day of that and each successive interest period. Interest shall be charged and compounded on this basis both before
and after any judgement obtained under this Facility Letter. 

    15. Assignment
and Transfer 

    15.1 No
Borrower may assign or transfer any of its rights or obligations under or in respect of this Facility Letter. 

    The
Bank may, at any time, assign and/or transfer all or any of its rights, benefits and/or obligations in respect of the Facility, in whole or in part, to any person or persons and
may, subject to obtaining customary undertakings protecting the confidentiality of such information, disclose to any actual or prospective assignee or transferee (or to any other person (i) in
connection with an actual or proposed securitisation of all or any part of the Bank's loan assets from time to time or (ii) who may otherwise enter or propose to enter into contractual
relations with the Bank in relation hereto) any 

10

 

information relevant to the Facility in the Bank's possession relating to the Borrowers and the Subsidiaries and any related security or guarantee. Other than in connection with an actual or
prospective securitisation referred to in (i), the Bank shall obtain the Borrowers' prior written consent to any assignment or transfer (such consent not to be unreasonably withheld or delayed). 

    16. Miscellaneous

    16.1 All
notifications or determinations given or made by the Bank under this Facility Letter shall be conclusive and binding on each Borrower, except in any case of
manifest error. 

    16.2 No
delay or omission by the Bank in exercising any right or power under this Facility Letter shall impair such right or power, and any single or partial exercise
of it shall not preclude any other right or power. The rights and remedies of the Bank under this Facility Letter are cumulative and not exclusive of any right or remedy provided by law. 

    16.3 Each
Borrower shall indemnify the Bank on demand (without prejudice to the Bank's other rights) for any expense, loss or liability incurred by the Bank in
consequence of (i) any failure by any Borrower to borrow in accordance with a notice of drawing given by it to the Bank, or (ii) any default or delay by any Borrower in the payment of
any amount when due under this Facility Letter, or (iii) the occurrence or continuance of any event referred to in clause 13 above, or (iv) all or part of the Facility being
prepaid or repaid for any reason otherwise than on the maturity of the then current interest period including, without limitation, any loss (other than loss of margin), expense or liability sustained
or incurred by the Bank in any such event in liquidating or re-deploying funds acquired or committed to fund, make available or maintain the Facility (or any part of it). 

    16.4 Any
sum of money at any time standing to the credit of any Borrower with the Bank in any currency upon any account or otherwise may be applied by the Bank, at any
time after the occurrence of an Event of Default (without notice to the Borrower), in or towards the payment or discharge of any indebtedness now or subsequently owing to the Bank by such Borrower and
the Bank may use any such money to purchase any currency or currencies required to effect such application. 

    16.5 If,
for any reason, any amount payable under this Facility Letter is paid or is recovered in a currency (the "other currency") other than that in which it is
required to be paid (the "contractual currency"), then, to the extent that the payment to the Bank (when converted at the then applicable rate of exchange) falls short of the amount unpaid under this
Facility Letter, the Borrower shall, as a separate and independent obligation, fully indemnify the Bank on demand against the amount of the shortfall. For the purposes of this clause the expression
"rate of exchange" means the rate at which the Bank is able as soon as practicable after receipt to purchase the contractual currency in London with the other currency. 

    16.6 If
the UK moves to the third stage of EMU, the Bank shall be entitled to make such changes to this Facility Letter as it reasonably considers are necessary to
reflect the changeover to the euro (including, without limitation, the rounding (up or down) of fixed monetary amounts to convenient fixed amounts in the euro and amending any provisions to reflect
the market conventions for a facility of the kind contemplated in this Facility Letter). 

    17. Interpretation

    17.1 In
this Facility Letter, unless the context otherwise requires: 

    "Best
Rating Guide" means the rating guide published in the US under the name "Best Rating Guide"; 

    "Business
Day" means a day on which the relevant London financial markets and the Bank are ordinarily open to effect transactions of the kind contemplated in this Facility Letter and,
if a payment falls due under this Facility Letter, also a day on which banks in the principal financial centre for the 

11

 

relevant currency (as determined by the Bank) are open for dealings in such currency and if a payment is to be made in euros, on which such payment system as the Bank chooses is operating for the
transfer of funds for the same day value; 

    "Co-
Agents" has the meaning given to it in the US Facility Agreement; 

    "Disposal
Proceeds" means the gross proceeds received in respect of a disposal referred to in sub-paragraph (b) of the definition of "Permitted Disposal" less the
amount of any present and future taxes payable with respect to any gain resulting from such disposal, and all third party costs, fees and expenses properly incurred in arranging and effecting such
disposal; 

    "Eligible
Trade Debtors" means, at any time in respect of any Borrower or any division of any Borrower, the unencumbered book debts of such Borrower as appearing in its books at such
time but excluding: 

    (a) each
debt due to such Borrower from any of its Subsidiaries, 

    (b) each
debt which has not been paid within 90 days (unless otherwise agreed by the Bank) after the date of the original invoice relating thereto, 

    (c) each
debt which is not (i) due from a debtor incorporated in the European Union, Switzerland, Norway, The United States of America or Canada, or
(ii) due from a wholly owned Subsidiary (wherever situate, subject to compliance by the Bank with applicable laws, regulations and the Bank's internal compliance policies) of, BMW AG,
Daimler-Chrysler AG, Fiat S.p.A., Ford Motor Company, General Motors Corporation, Renault S.A., Peugeot S.A. or Volkswagen AG in each case subject to periodic review by the Bank, or
(iii) guaranteed or insured by the Export Credits Guarantee Department or other UK Government department or agency, 

    each
debt due from Cyltec LLC, and 

    (e) each
debt in respect of retention monies due (forming all or part of any invoiced amount); 

    "EMU"
means Economic and Monetary Union as contemplated in the Treaty establishing the European Community, as amended from time to time; 

    "Encumbrance"
includes any mortgage, charge, pledge, lien (other than a lien arising solely by operation of law in the ordinary course of business and securing amounts not more than
90 days overdue for payment), assignment by way of security, hypothecation, security interest or other agreement or arrangement which results in (or has substantially the same commercial effect
as) the creation of security (but excluding title retention agreements or arrangements entered into in the ordinary course of trading and not otherwise falling within this definition) and any rigt 

    "Event
of Default" means any event or circumstance referred to in clause 13; 

    "Expiry
Date" has the meaning given to it in clause 2; 

    "Facility"
means the facility made available under this Facility Letter (as reduced from time to time in accordance with its provisions); 

    "financial
indebtedness" means, without duplication, all liabilities, obligations and indebtedness of any Borrower, of any kind or nature, now or hereafter owing, arising, due or
payable, howsoever evidenced, created, incurred, acquired or owing, whether primary, secondary, direct, contingent, fixed or otherwise, consisting of indebtedness for borrowed money or the deferred
purchase price of property, excluding trade payables but including (a) all obligations and liabilities of any person secured by any Encumbrance on any Borrower's or Guarantor's property, even
though such Borrower or Guarantor shall not have assumed or become liable for the payment thereof; provided, however, that all such obligations and liabilities which are limited in recourse to such
property shall be included in financial indebtedness only to the extent of the book value of such property as would be shown on a balance 

12

 

sheet of such Borrower or Guarantor prepared in accordance with either UK or US generally accepted accounting standards (as applicable to the entity in question); (b) all obligations or
liabilities created or arising under any finance lease or conditional sale or other title retention agreement with respect to property used or acquired by any Borrower or Guarantor, even if the rights
and remedies of the lessor, seller or lender thereunder are limited to repossession of such property; provided, however, that all such obligations and liabilities which are limited in recourse to such
property shall be included in financial indebtedness only to the extent of the book value of such property as would be shown on a balance sheet of such Borrower or Guarantor prepared in accordance
with either UK or US generally accepted accounting standards (as applicable to the entity in question); (c) all obligations and liabilities under guarantees; and (d) the present value
(discounted at the greater of Bank of America N.A.'s "prime rate" or 0.50% above US Federal Funds Rate) of lease payments due under synthetic leases; 

    "indebtedness"
includes any obligation for the payment or repayment of money, whether actual or contingent, present or future, secured or unsecured, and whether incurred as principal
or surety or otherwise; 

    "Material
Adverse Effect" means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties or condition (financial or otherwise)
of the Borrowers and Guarantors taken as a whole; (b) a material impairment of the ability of the Borrowers and the Guarantors taken as a whole to perform under the Facility Letter and any
guarantee or security provided in connection with the Facility Letter; or (c) a material adverse effect on the legality, validity,
binding effect or enforceability against any Borrower or any Guarantor of this Facility Letter or any such guarantee or security; 

    "month"
means a period starting on one day in a calendar month and ending on the corresponding day in the next calendar month or, if that is not a Business Day, on the next Business
Day unless that falls in another calendar month in which case it shall end on the preceding Business Day, save that where a period starts on the last Business Day in a month or there is no
corresponding day in the month in which the period ends, that period shall end on the last Business Day in the later month; 

    "Operating
Cashflow" means, in relation to any accounting reference period of any Borrower, such Borrower's Total Operating Profit plus amounts charged to depreciation and
amortisation, capital receipts from the disposals of assets and funds received from equity subscription and capital issues minus corporation tax paid and capital expenditure plus or minus movements in
working capital (each as shown in such Borrower's audited financial statements delivered to the Bank in accordance with clause 11.1 for such accounting reference period); 

    "Overdraft
Facility Letter" means the facility letter dated 7 August 2001 (as amended or extended or replaced from time to time) from the Bank to the Borrowers providing for an
overdraft facility of up to £1,000,000; 

    "Parent"
means a parent undertaking of a Borrower within the meaning of Section 258 of the Companies Act 1985; 

    "Permitted
Disposal" means (a) any sale of current assets in the ordinary course of trading by any Borrower or any Subsidiary, (b) a disposal which is referred to in the
letter from UNOVA, Inc. to the Bank dated no later than the date hereof and is made in accordance with the terms of that letter, (c) any disposal to which the Bank has consented (such
consent not to be unreasonably withheld or delayed) of plant, machinery or equipment made solely in connection with a Borrower entering into operating or finance leasing arrangements or (d) any
other disposal by any Borrower or any Subsidiary agreed in writing from time to time between the Borrowers and the Bank; 

13

 

    "Permitted Loan" means any guarantee, bond, indemnity, loan or financial accommodation which either: 

    forms
trade credit in the normal course of business, or 

    (b) is
made to any direct or indirect Subsidiary of UNOVA Inc. incorporated in Germany or Sweden, (each an "Approved Affiliate") either (i) from the
proceeds of any utilisation under the Sterling/Currency MML and does not exceed £5,000,000 when aggregated with all other loans or financial accommodation made by each Borrower and each UK
Subsidiary to an Approved Affiliate from the proceeds of any utilisation under the Sterling/Currency MML or (ii) not from the proceeds of any utilisation under the Sterling/Currency MML; 

    "person"
shall be construed as a reference to any person, firm, company, corporation, government, state or agency of a state or any association or partnership (whether or not having
separate legal personality) of two or more of the foregoing; 

    "Potential
Event of Default" means any event or circumstance which, with the giving of notice, lapse of time or fulfilment of any other condition, would be an Event of Default; 

    "Properties"
means the leasehold and freehold industrial units and offices at (i) Hampstead Avenue, Mildenhall, Suffolk (described and demised by a conveyance dated 14
April 1988 between Lamb-Sceptre Engineering Limited (1) and Litton U.K. Limited (2)), (ii) Eastburn Works, Skipton Road, Cross Hills, Keighly, West Yorkshire (title
no. WYK393531), (iii) Kingsbury Road, Erdington, Birmingham (title no's WM542569, WM542383, WM711536, WM542336, WM645192). 

    "$"
means the lawful currency of the US; 

    "Sterling"
and "£" means the lawful currency for the time being of the UK; 

    "Subsidiary"
means a subsidiary undertaking of a Borrower within the meaning of Section 258 of the Companies Act 1985; 

    "Total
Operating Profit" means, in relation to any accounting reference period of any Borrower, such Borrower's total operating profit for continuing operations, acquisitions (as a
component of continuing operations) and discontinued operations (as set out in Financial Reporting Standard No. 3) but ignoring any exceptional items (each as shown in such Borrower's audited
financial statements delivered to the Bank in accordance with clause 11.1 for such accounting reference period); 

    "Trade
Debtors" means the value of the Eligible Trade Debtors of each of Cincinnati Machine U.K. Limited, Intermec Technologies U.K. Limited, Lamb Technicon (a division of UNOVA U.K.
Limited) and Landis Lund (a division of UNOVA U.K. Limited); 

    "UK"
means the United Kingdom of Great Britain and Northern Ireland; 

    "UK
Subsidiary" means any Subsidiary of the Borrower which is incorporated in the United Kingdom; 

    "US"
means the United States of America; 

    "US
Facility" means the facility made available under the US Facility Agreement; 

    "US
Facility Agreement" means a syndicated facility agreement dated 12 July 2001 between (inter alia) UNOVA, Inc. and others as borrowers, Bank of America N.A. and
Heller Financial, Inc. and others as lenders and/or agents (as amended, restated, extended or supplemented from time to time); and 

    "VAT"
means value added tax or any similar tax substituted for it from time to time. 

14

 

    17.2 References to any statutory provision includes any amended or re-enacted version of such provision with effect from the date on which it comes into
force. 

    17.3 Save
where the context otherwise requires, any expression in this Facility Letter importing the singular shall include the plural and vice versa. 

    17.4 References
to a time of the day are references to the time in London. 

    17.5 It
is expressly stipulated that in the event of any conflict or inconsistency between the terms of any guarantee or security required to be delivered in connection
with the Facility Letter pursuant to clause 18.3 below, and the terms of this Facility Letter (as amended, replaced or extended from time to time) the terms of the Facility Letter (as so
amended, replaced or extended) shall prevail. It is also agreed, that no demand under the Overdraft Facility Letter shall (unless at the time of, or subsequent to, such demand an Event of Default is
continuing) give the Bank the right to make demand on any
Guarantor or enforce the Encumbrances created under the said security if such demand is satisfied in full within 7 days of the making thereof. 

    17.6 So
long as any amount remains outstanding under this Facility, it is expessly stipulated that clause 6(b) of the Bank's standard form of debenture referred
to in clause 3.1 of this Facility Letter shall be deemed to have been deleted, clause 6(d) thereof shall be deemed amended by the insertion of "which are necessary and useful in the
conduct of its business" after "thereof" on the second line and by the insertion of the words "(ordinary wear and tear excepted)" at the end of clause 6(d) and that clause 14 of the
Bank's standard form of Guarantee referred to in clause 3.1 of this Facility Letter shall be deemed amended by the insertion of the words "(which shall be exercised in good faith using its
reasonable credit judgement)" after the word "discretion"on the 18th line thereof and by the deletion of the word "absolute" on such line. 

    18. Conditions
Precedent 

    The
Facility will become available to the Borrowers for drawing only upon receipt by the Bank of the following in form and substance satisfactory to the Bank: 

    (a) this
Facility Letter as required under clause 21 below; 

    (b) a
certified true copy of a resolution of each Borrower's Board of Directors and the Board of Directors of UNOVA, Inc: 

    (i)  accepting
the Facility and this offer on the terms and conditions stated within this Facility Letter; 

    (ii) authorising
a specified person, or persons, to countersign and return to the Bank the enclosed duplicate of this Facility Letter; 

    (iii) authorising
the Bank to accept instructions and confirmations in connection with the Facility signed in accordance with the Bank's signing mandate current from
time to time, and to accept instructions in connection with drawings under the Sterling/Currency MML and, by telephone from any person specifically authorised to give such telephone instructions; and 

    (iv) containing
confirmed specimens of the signatures of those officers referred to in (ii) and (iii) above, if not already known to the Bank; and 

    (c) the
debentures, legal charges and guarantees referred to in clause 3 above duly executed by the chargors and guarantors specified in such clause together
with such other documents relating thereto as the Bank may require and shall have specified prior to the date of this letter including (i) a board resolution from each of the Guarantors
approving the execution, delivery and performance of the guarantees and security referred to in clause 3.1 to which it is a party and the terms and conditions thereof, authorising a specified
person or persons to sign any documents to be delivered by it in 

15

 

relation thereto, (ii) confirmed specimen signatures of such authorised persons and (iii) a legal opinion from the U.S. legal counsel to UNOVA, Inc. 

    19. Governing
Law and Jurisdiction 

    19.1 This
Facility Letter shall be governed by and construed in accordance with English law. 

    Each
Borrower and UNOVA, Inc. hereby irrevocably submit, for the exclusive benefit of the Bank, to the jurisdiction of the High Court of Justice in England (but without
prejudice to the right of the Bank to commence proceedings against the Borrower in any other jurisdiction) and irrevocably waives any objections on the ground of venue or forum non conveniens or any
similar grounds. 

    Without
prejudice to any other mode of service allowed under any relevant law, 

    UNOVA, Inc.
irrevocably appoints UNOVA U.K. Limited as its agent for service of process in relation to any proceedings before the English courts in connection with this
Facility Letter; and 

    agrees
that the failure by a process agent to notify UNOVA, Inc. of the process will not invalidate the proceedings concerned. 

    20. Notices

    Every
notice, request or other communication shall: 

    (a) be
in writing delivered personally or by prepaid first class letter or facsimile transmission; 

    (b) be
deemed to have been received by the Borrowers and UNOVA, Inc., in the case of a letter when delivered personally or 48 hours after it has been sent
by first class post or, in the case of facsimile transmission, at the time of transmission with a facsimile transmission report or other appropriate evidence (provided that if the date of transmission
is not a Business Day it shall be deemed to have been received at the opening of business on the next Business Day); and 

    (c) be
sent (i) to the Borrowers and UNOVA, Inc. at the address stated at the beginning of this Facility Letter and (ii) to the Bank at the address
stated at the beginning of this Facility Letter, or to such other address in England as may be notified in writing by the relevant party to the other. 

    All
communications by the Borrowers and UNOVA, Inc. shall be effective only on actual receipt by the Bank. 

    21. Acceptance

    If
each of the Borrowers and UNOVA, Inc. wish to accept this offer, this Facility Letter and the enclosed duplicate should be signed below by an authorised officer on its
behalf and the signed duplicate returned to the Bank. This offer will remain available until 30 September 2001, after which it will lapse if not accepted. 

Yours
faithfully

for and on behalf of

BARCLAYS BANK PLC 

JOHN
DAVEY

RELATIONSHIP DIRECTOR 

Accepted
on the terms and conditions stated herein, 

For
and on behalf of 

16

 

UNOVA U.K. Limited 

by
/s/ Michael E. Keane 

Date
September 13, 2001 

Cincinnati
Machine U.K. Limited 

by
/s/ Michael E. Keane 

Date
September 13, 2001 

Intermec
Technologies U.K. Limited 

by
/s/ Michael E. Keane 

Date
September 13, 2001 

UNOVA, Inc.

by
/s/ Elmer C Hull Jr. 

Date
September 13, 2001 

17

 

SCHEDULE A  

    Sterling/Currency
MML 

    The
Sterling/Currency MML includes the option not only to draw by way of short term loans in sterling, but also for the Borrowers to draw by way of short term loans in US Dollars and
euro if freely transferable and convertible into sterling and available to the Bank in the relevant amount for the relevant period in the normal course of business in the London Interbank Market. The
Bank shall be the sole arbiter of the availability of such currencies. 

    The
Sterling/Currency MML may be drawn in one or more amounts each drawing to be a minimum amount of £500,000 (or the equivalent thereof in other currencies) and multiples
of £50,000 (or the equivalent thereof in other currencies) thereafter for periods of a minimum seven days up to a maximum of 12 months at the Borrower's option or other mutually
agreed period but no drawing should be made for an interest period with a maturity date of more than three months beyond the Expiry Date. 

    When
wishing to draw under the Sterling/Currency MML, the Borrower should telephone the Bank's dealers at Global Treasury Services ("GTS") on 0345-231160 on or shortly
before the Business Day on which funds are required, stating the currency and the amount of the drawing, the period required and giving instructions for payment of the funds. In the event these
instructions do not stipulate that the funds must be credited to the Borrower's current account with the Bank's branch at 210 High Street, Hounslow, Middlesex TW3 1DL (the "Branch") such instructions
must be confirmed by letter to the Branch at the earliest opportunity. 

    Unless
otherwise agreed between the Borrower and GTS, the interest rate on each drawing will be the aggregate of the Bank's margin of 3% per annum plus LIBOR (to be conclusively
determined by the Bank and dependent upon the conditions prevailing in the London financial markets) and any mandatory costs to compensate the Bank for the cost resulting from the imposition from time
to time under the Bank of England Act 1998 and/or by the Bank of England and/or the Financial Services Authority (the "FSA") (or other United Kingdom governmental authorities or agencies) of a
requirement to place non-interest bearing cash ratio deposits or Special Deposits (whether interest bearing or not) with the Bank of England and/or pay fees to the FSA calculated by
reference to liabilities used to fund the sum) for the period of drawing. 

    Interest
will be payable without deduction at the maturity of each drawing, and calculated on the basis of actual days elapsed over a 365 day year for sterling drawings and a
360 day year for currency drawings (or if market practice differs, in accordance with the normal market practice for the relevant currency). 

    Each
drawing, together with interest thereon, will be repaid on its maturity date in the currency in which such drawing is outstanding in accordance with the provisions of
clause 12 of this Facility Letter. 

18

 

SCHEDULE B  

    Guarantees,
Bonds and Indemnities 

    The
Bank is prepared to consider issuing guarantees, bonds and indemnities on behalf of any Borrower in respect of normally accepted and commercial transactions, up to a limit of
£6,000,000 (six million pounds) subject to prior agreement with the Bank and receipt of the necessary counter indemnities. 

    Commission
at the rate of 1% per annum of the principal amount of each outstanding guarantee, bond and indemnity will be payable by the relevant Borrower to the Bank, quarterly in
advance. 

    The
outstanding guarantees in an amount of up to £4,500,000 issued by the Bank prior to the date hereof on behalf of UNOVA U.K. Limited shall be deemed not to be issued
under this Ancillary Facility provided that such guarantee remains fully cash collateralised at all times. 

19<Page>

                                                                     EXHIBIT 4.1

                          CERTIFICATE OF AMENDMENT TO THE
                 AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
                                       OF
                             ALLEGIANCE TELECOM, INC.
                              *      *      *      *

         The undersigned, being the Secretary of Allegiance Telecom, Inc., a
corporation duly organized and existing under and by virtue of the General
Corporation Law of the State of Delaware (the "Corporation"), DOES HEREBY
CERTIFY as follows:

         FIRST: The Board of Directors of the Corporation adopted the
resolution set forth below proposing an amendment to the Amended and Restated
Certificate of Incorporation of the Corporation (the "Amendment") and directed
that the Amendment be submitted to the stockholders of the issued and
outstanding shares of capital stock of the Corporation entitled to vote
thereon for its consideration and approval:

         RESOLVED, that the Amended and Restated Certificate of Incorporation
         of the Corporation be, and hereby is, amended in accordance with
         Section 242 of the Delaware General Corporation Law by replacing Part
         A of ARTICLE IV thereof with the following:

               "Part A. General. The maximum number of shares of capital stock
               that the Corporation is authorized to have outstanding at any
               one time is 751,000,000 shares, consisting of: (i) 1,000,000
               shares of Preferred Stock, par value $0.01 per share (the
               "Preferred Stock"); and (ii) 750,000,000 shares of Common
               Stock, par value $0.01 per share (the "Common Stock")."

         SECOND: That the Certificate of Amendment has been approved by the
Corporation pursuant to a resolution of its Board of Directors and duly
adopted by the majority of the shares outstanding entitled to vote thereon.

         THIRD: The Certificate of Amendment was duly adopted in accordance
with the provisions of Sections 242 and 222 of Delaware General Corporation
Law.

         FOURTH: That the Certificate of Amendment shall become effective on
the date this Certificate of Amendment is duly filed with the Secretary of
State of the State of Delaware.

         IN WITNESS WHEREOF, the undersigned does hereby declare and certify
under penalties of perjury that this Certificate of Amendment to the Amended
and Restated Certificate of Incorporation of the Corporation is the act and
deed of the Corporation and the facts stated herein are true, and accordingly
has hereunto set his hand this 27 day of August, 2001.

                              ALLEGIANCE TELECOM, INC.,
                              a Delaware corporation
                              By:     /s/ Mark B. Tresnowski
                                        Mark B. Tresnowski,
                                      Senior Vice President, General Counsel
                                      and Secretary

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