Document:

<PAGE>

                                                                Exhibit 10.7

                                 WESTFIELD BANK

                      DIRECTORS' DEFERRED COMPENSATION PLAN

                              Adopted on
                                         ------------
                           Effective as of
                                           ------------

<PAGE>

                                TABLE OF CONTENTS
                                -----------------

                                                             Page
                                                             ----
                                    Article I

                                   Definitions

Section 1.1     Administrator .............................    1
Section 1.2     Bank ......................................    1
Section 1.3     Beneficiary ...............................    1
Section 1.4     Board .....................................    1
Section 1.5     Code ......................................    1
Section 1.6     Committee .................................    1
Section 1.7     Common Stock ..............................    1
Section 1.8     Director ..................................    1
Section 1.9     Disability ................................    1
Section 1.10    Effective Date ............................    1
Section 1.11    Exchange Act ..............................    1
Section 1.12    Fees ......................................    1
Section 1.13    Hardship ..................................    2
Section 1.14    Holding Company ...........................    2
Section 1.15    Investment Classification .................    2
Section 1.16    Memorandum Account ........................    2
Section 1.17    Participant ...............................    2
Section 1.18    Participating Company .....................    2
Section 1.19    Plan ......................................    2
Section 1.20    Retirement ................................    2

                                   Article II

                                  Participation

Section 2.1     Election to Participate ...................    2
Section 2.2     Changes in Participation ..................    3

                                   Article III

                                Deferred Amounts

Section 3.1     In General ................................    3
Section 3.2     Opening Account Balances ..................    3
Section 3.3     Adjustments to Memorandum Accounts ........    4
Section 3.4     Vesting ...................................    4

                                       (i)

<PAGE>

                                                                   Page
                                                                   ----

                         Article IV

                            Trust

Section 4.1     Establishment of Trust. ..........................   5
Section 4.2     Contributions to Trust. ..........................   5
Section 4.3     Unfunded Character of Plan. ......................   5

                          Article V
                        Distributions

Section 5.1     Distributions to Participants. ...................   6
Section 5.2     Distributions to Beneficiaries ...................   6

                         Article VI
                     Change of Control

Section 6.1     Change of Control Defined ........................   7
Section 6.2     Participants' Options upon a Change of Control ...   8

                         Article VII
                  Miscellaneous Provisions

Section 7.1     Notice and Election ..............................   9
Section 7.2     Construction and Language ........................   9
Section 7.3     Non-Alienation of Benefits .......................   9
Section 7.4     Indemnification ..................................   9
Section 7.5     Severability .....................................  10
Section 7.6     Waiver ...........................................  10
Section 7.7     Governing Law ....................................  10
Section 7.8     No Deposit Account ...............................  10
Section 7.9     Amendment and Termination ........................  10
Section 7.11    Successors and Assigns ...........................  11

                                   (ii)

<PAGE>

                                 WESTFIELD BANK
                                 --------------

                      DIRECTORS' DEFERRED COMPENSATION PLAN
                      -------------------------------------

                                    ARTICLE I
                                    ---------

                                   DEFINITIONS
                                   -----------

                  The following definitions shall apply for the purposes of this
Plan unless a different meaning is clearly indicated by the context:

                  Section 1.1  Administrator means any person, committee,
                               ------------
corporation or organization appointed by the Committee to perform the
responsibilities assigned to the Administrator hereunder.

                  Section 1.2  Bank means Westfield Bank or any successor
                               ----
thereto.

                  Section 1.3  Beneficiary  means the person or persons
                               -----------
designated by the Participant under section 5.2(b) of the Plan.

                  Section 1.4  Board means the Board of Directors of the Bank.
                               -----

                  Section 1.5  Code means the  Internal  Revenue  Code of 1986
                               ----
(including the corresponding provisions of any succeeding law).

                  Section 1.6  Committee means the Compensation Committee of the
                               ---------
Board.

                  Section 1.7  Common Stock means Shares of Common Stock of
                               ------------
Westfield Financial, Inc.

                  Section 1.8  Director means any member of the Board of
                               --------
Directors of any Participating Company who is not an employee of any
Participating Company. The term "Director" shall not include any individual to
the extent that his service is as a director emeritus or a member of an advisory
board.

                  Section 1.9  Disability means a condition of total incapacity,
                               ----------
mental or physical, for further service as a Director, which the Committee shall
have determined on the basis of competent medical evidence is likely to be
permanent.

                  Section 1.10 Effective Date means                          .
                               --------------       -------------------------

                  Section 1.11 Exchange Act means the Securities Exchange Act of
                               ------------
1934, as amended (including the corresponding provisions of any succeeding law).

                  Section 1.12 Fees means, with respect to any Director,
                               ----
compensation payable for services as a member of the Board of Directors of a
Participating Company, including annual retainer fees, regular meeting fees,
special meeting fees and committee meeting fees.

<PAGE>
                                       -2-

                  Section 1.13 Hardship means a condition described in Section
                               --------
2.2(b).

                  Section 1.14 Holding Company means Westfield Financial, Inc.
                               ---------------
or any successor thereto.

                  Section 1.15 Investment Classification means a hypothetical
                               -------------------------
investment classification established by the Committee, pursuant to section
3.3(a), in which a Participant's Memorandum Account shall be deemed to be
invested for purposes of crediting or charging earnings, losses, appreciation or
depreciation with respect to the Participant's Memorandum Account, in accordance
with Section 3.3(c).

                  Section 1.16 Memorandum Account means, with respect to a
                               ------------------
Participant, an account maintained by the Bank to which is credited the amount
of the Participant's deferred Fees together with any earnings and appreciation
thereon, and against which are charged any losses, depreciation or distributions
thereof, pursuant to section 3.3 and Articles V and VI.

                  Section 1.17 Participant means a Director or former Director
                               -----------
who has a Memorandum Account under the Plan.

                  Section 1.18 Participating Company means the Bank, the Holding
                               ---------------------
Company, Westfield Mutual Holding Company (including any successor thereto) and
any other company which, with the prior approval of the Bank, may adopt this
Plan.

                  Section 1.19 Plan means the Westfield Bank Directors' Deferred
                               ----
Compensation Plan.

                  Section 1.20 Retirement means a Participants' termination of
                               ----------
service as a Director at or after attaining age 72.

                                   ARTICLE II
                                   ----------

                                  PARTICIPATION
                                  -------------

                  Section 2.1  Election to Participate.
                               -----------------------

                  Any Director of a Participating Company may elect to become a
Participant in the Plan by submitting to the Administrator a written election to
defer receipt of all or a specified part of his Fees. Such election shall be
made on or before the last day of any calendar year and shall be effective for
the calendar year following the calendar year in which such election is made and
all subsequent calendar years unless a change in participation is elected
pursuant to section 2.2. Notwithstanding the foregoing sentence, an initial
election made by a Director and filed with the Administrator during the thirty
(30) day period immediately following the date the Director first becomes
eligible to participate in the Plan may be effective for Fees earned on or after
an earlier date designated by the Director that is after the last day of the
calendar month in which such election is filed with the Administrator.

<PAGE>
                                       -3-

                  Section 2.2 Changes in Participation.
                              ------------------------

                  (a) An election by a Director pursuant to section 2.1 shall
continue in effect until termination of service as a Director; provided,
however, that the Director may, by written election filed with the
Administrator, increase or decrease the portion of his Fees to be deferred or
discontinue such deferral altogether. Such election shall be effective with
respect to Fees earned after the calendar year in which such election is filed
with the Administrator; provided, however, that if such election provides for
the decrease or discontinuance of the Director's deferral of Fees and is made on
account of a Hardship, as defined in section 2.2(b), such election shall be
effective with respect to Fees earned after the last day of the calendar month
in which such election is filed. In the event that a Participant ceases to be a
Director or in the event that a Director ceases to defer receipt of his Fees,
the balance in his Memorandum Account shall continue to be adjusted in
accordance with Article III. A Director who has filed a written election to
cease deferring receipt of his Fees may thereafter again file an election to
defer receipt of all or any portion of his Fees pursuant to section 2.1,
effective for the calendar year subsequent to the calendar year in which he
files the new election.

                  (b) For purposes of Section 2.2(a), a Directors' election to
decrease or discontinue his deferral of Fees shall be deemed to be made on
account of a Hardship if the Committee has determined, in its sole discretion,
that such change is made on account of an unanticipated immediate and heavy
financial need of the Director and is necessary to satisfy such financial need.

                                   ARTICLE III
                                   -----------

                                DEFERRED AMOUNTS
                                ----------------

                  Section 3.1 In General.
                              ----------

                  The Administrator shall maintain a separate Memorandum Account
for each Participant. Credits, charges, and other adjustments to each
Participant's Memorandum Account shall be made in accordance with this Article
III. Neither the Bank nor any Participating Company shall fund its liability for
the balances credited to a Memorandum Account, but each shall reflect its
liability for such balances on its books. The Holding Company may, on such terms
and conditions as it may, in its discretion, establish, agree to assume the
liability for the payment of that portion of a Participant's Memorandum Account
attributable to service for the Bank or other Participating Companies.

                  Section 3.2 Opening Account Balances.
                              ------------------------

                  The opening balance of the Memorandum Account of any other
Participant as of the Effective Date shall be $0.

<PAGE>
                                       -4-

                  Section 3.3 Adjustments to Memorandum Accounts.
                              ----------------------------------

                  (a)   The Committee shall establish from time to time, in its
discretion, one or more Investment Classifications for the purpose of adjusting
each Participant's Memorandum Account to reflect an amount of earnings, losses,
appreciation or depreciation, as appropriate with respect to the Investment
Classification or Investment Classifications in which the Participant's
Memorandum Account is deemed to be invested. The initial Investment
Classification shall be the highest rate on a certificate of deposit available
at the Bank during the calendar year.

                  (b)   Each Participant shall, by written notice given in such
form and manner as the Administrator may prescribe, direct that his deferred
Fees be deemed to be invested in one or more of the Investment Classifications.
Once during each calendar quarter, a Participant may also request, by written
notice given in such form and manner as the Administrator may prescribe, that
all or a portion of his Memorandum Account that has been deemed to be invested
in one or more of the Investment Classifications be deemed to be liquidated and
the proceeds deemed to be invested in one or more of the other Investment
Classifications, if any.

                  (c)   The Memorandum Account established for each Participant
shall be adjusted from time to time, but in no event less frequently than
monthly to reflect:

                  (i)   credits for deferred Fees;

                  (ii)  credits reflecting income,  dividends and appreciation
attributable to the appropriate  Investment Classifications;

                  (iii) charges for losses or depreciation attributable to the
appropriate Investment Classifications; and

                  (iv)  charges for payments to the Participant or his
Beneficiary.

                  Section 3.4 Vesting.
                              -------

                  All amounts credited to a Participant's Memorandum Account
shall be 100% vested at all times.

<PAGE>
                                       -5-

                                   ARTICLE IV
                                   ----------

                                      TRUST
                                      -----

                  Section 4.1 Establishment of Trust.
                              ----------------------

                  The Bank may establish a trust fund which may be used by the
Bank to accumulate funds to satisfy its liabilities to Participants under the
Plan; provided, however, that the assets of such trust shall be subject to the
claims of the creditors of the Bank in the event that it is determined that the
Bank is insolvent or that grounds exist for the appointment of a conservator or
receiver of the Bank; and provided, further, that the trust agreement shall
contain such terms, conditions and provisions as shall be necessary to cause the
Bank to be considered the owner of the trust fund for federal, state or local
income tax purposes with respect to deferred Fees or other amounts contributed
to the trust fund or any income attributable to the investments of the trust
fund. The Bank shall pay all costs and expenses incurred in establishing and
maintaining such trust and the Plan. Any payments made to a Participant or
Beneficiary from a trust established under this Section 4.1 shall offset
payments which would otherwise be payable by the Bank in the absence of the
establishment of such trust.

                  Section 4.2 Contributions to Trust.
                              ----------------------

                  If a trust is established in accordance with section 4.1, the
Bank shall make contributions to such trust in such amounts and at such times as
may be specified by the Committee.

                  Section 4.3 Unfunded Character of Plan.
                              --------------------------

                  Notwithstanding the establishment of a trust pursuant to
section 4.1, the Plan shall be unfunded. Any liability of the Bank or another
Participating Company to any person with respect to benefits payable under the
Plan shall be based solely upon such contractual obligations, if any, as shall
be created by the Plan, and shall give rise only to a claim against the general
assets of the Bank or such Participating Company. No such liability shall be
deemed to be secured by any pledge or any other encumbrance on any specific
property of the Bank or a Participating Company.

<PAGE>
                                       -6-

                                    ARTICLE V
                                    ---------

                                  DISTRIBUTIONS
                                  -------------

                  Section 5.1 Distributions to Participants.
                              -----------------------------

                  (a) Upon a Participant's termination of service as a Director
due to Retirement or Disability, or upon the Participant's attainment of age
[__], an amount equal to the balance in such Participant's Memorandum Account
shall be paid in cash to the Participant in either (i) a lump sum payment or,
(ii) in the Committee's sole discretion, in equal annual or semi-annual
installment payments over a period not to exceed sixty (60) months. In the event
payment is to be made in installments, each installment shall be equal to the
balance credited to the Participant's Memorandum Account as of the last day of
the month ending immediately prior to the date as of which payment is to be
made, divided by the number of installment payments remaining to be paid
(including the payment then being computed). Any portion of the balance credited
to the Participant's Memorandum Account with respect to which a payment has not
been made shall continue to be adjusted pursuant to section 3.3, in accordance
with the Investment Classifications in which the Participant's Memorandum
Account is deemed to be invested, until a distribution with respect to such
amount has been made.

                  (b) Distributions shall be made, or commence, within 30 days
of the date the Participant becomes entitled to payment pursuant to this section
5.1.

                  Section 5.2 Distributions to Beneficiaries.
                              ------------------------------

                  (a) A Participant may designate a Beneficiary by filing a
written notice with the Administrator, in such form and manner as the
Administrator may prescribe, prior to his death. A Participant who has
designated a Beneficiary may change or revoke such designation prior to the
Participant's death by means of a similar written instrument.

                  (b) In the event that a Participant dies before receiving
payment of his entire Memorandum Account, payment of the value of the deceased
Participant's Memorandum Account shall be made in a lump sum to his Beneficiary.
If no Beneficiary shall have been designated or if any such designation shall be
ineffective, or in the event that no designated Beneficiary survives the
Participant, payment of the value of the Participant's Memorandum Account shall
be made to the Participant's personal representative, or if no personal
representative is appointed within 6 months of the Participant's death, to his
surviving spouse, or if he has no surviving spouse, to his then living
descendants, per stirpes, in the same manner and at the same time as the
Participant's Memorandum Account would have been paid to the Participant had he
lived.

<PAGE>
                                       -7-

                                   ARTICLE VI
                                   ----------

                                CHANGE OF CONTROL
                                -----------------

                  Section 6.1 Change of Control Defined.
                              -------------------------

                  A Change of Control shall be deemed to have occurred upon the
happening of any of the following events:

                  (a) in the case of a Director of the Holding Company, approval
by the stockholders of the Holding Company of a transaction that would result in
the reorganization, merger or consolidation of the Holding Company with one or
more other persons, other than a transaction following which:

                  (i) at least 51% of the equity ownership interests of the
         entity resulting from such transaction are beneficially owned (within
         the meaning of Rule 13d-3 promulgated under the Exchange Act) in
         substantially the same relative proportions by persons who, immediately
         prior to such transaction, beneficially owned (within the meaning of
         Rule 13d-3 promulgated under the Exchange Act) at least 51% of the
         outstanding equity ownership interests in the Holding Company; and

                  (ii)at least 51% of the securities entitled to vote generally
         in the election of directors of the entity resulting from such
         transaction are beneficially owned (within the meaning of Rule 13d-3
         promulgated under the Exchange Act) in substantially the same relative
         proportions by persons who, immediately prior to such transaction,
         beneficially owned (within the meaning of Rule 13d-3 promulgated under
         the Exchange Act) at least 51% of the securities entitled to vote
         generally in the election of directors of the Holding Company;

                  (b) in the case of a Director of the Holding Company, the
acquisition of all or substantially all of the assets of the Holding Company or
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 20% or more of the outstanding securities of Holding Company
entitled to vote generally in the election of directors by any person or by any
persons acting in concert, or approval by the stockholders of the Holding
Company of any transaction which would result in such an acquisition; or

                  (c) in the case of a Director of the Holding Company, a
complete liquidation or dissolution of the Holding Company, or approval by the
stockholders of the Holding Company of a plan for such liquidation or
dissolution; or

                  (d) in the case of a Director of the Holding Company, the
occurrence of any event if, immediately following such event, at least 50% of
the members of the board of directors of the Holding Company do not belong to
any of the following groups:

<PAGE>
                                       -8-

                  (i)  individuals  who were members of the board of directors
         of the Holding Company on the date on which such Director first became
         a Participant; or

                  (ii) individuals who first became members of the board of
         directors of the Holding Company after such date either:

                       (A) upon election to serve as a member of the board
                  of directors of the Holding Company by affirmative vote of
                  three-quarters of the members of such board, or of a
                  nominating committee thereof, in office at the time of such
                  first election; or

                       (B) upon election by the stockholders of the Holding
                  Company to serve as a member of the board of directors of the
                  Holding Company, but only if nominated for election by
                  affirmative vote of three-quarters of the members of the board
                  of directors of the Holding Company, or of a nominating
                  committee thereof, in office at the time of such first
                  nomination;

         provided, however, that such individual's election or nomination did
         not result from an actual or threatened election contest (within the
         meaning of Rule 14a-11 of Regulation 14A promulgated under the Exchange
         Act) or other actual or threatened solicitation of proxies or consents
         (within the meaning of Rule 14a-11 of Regulation 14A promulgated under
         the Exchange Act) other than by or on behalf of the board of directors
         of the Holding Company;

                  (e)  in the case of any Participant who is or was a Director
of the Bank or a Participating Company other than the Bank or the Holding
Company, an event that would be described in section 6.1(a), (b), (c) or (d) if
the name of the Bank or such other Participating Company were substituted for
the words "Holding Company" therein.

In no event, however, shall a Change of Control be deemed to have occurred as a
result of any acquisition of securities or assets of the Holding Company, the
Bank or any Participating Company, or any subsidiary of any of them, by the
Holding Company, the Bank or any Participating Company, or any subsidiary of any
of them, or by any employee benefit plan maintained by any of them. For purposes
of this section 6.1 the term "person" shall have the meaning assigned to it
under sections 13(d)(3) or 14(d)(2) of the Exchange Act.

                  Section 6.2 Participants' Options upon a Change of Control
                              ----------------------------------------------

                  In the event of a Change of Control, the Memorandum Account
maintained for a Participant shall continue to be held by the Administrator and
distributed in accordance with the terms of the Plan; provided, however, that
the Participant may, by written notice delivered to the Administrator no later
than 60 days after the occurrence of the Change of Control, direct the Bank, the
Holding Company or any other Participating Companies or their respective
successors to distribute the value of his Memorandum Account in a lump sum
payment within 30 days after receipt of the Participant's written direction. In
the event that a Participant does not make such election, his

<PAGE>
                                       -9-

Memorandum Account shall continue to be maintained and adjusted in accordance
with the terms of the Plan.

                                   ARTICLE VII
                                   -----------

                            MISCELLANEOUS PROVISIONS
                            ------------------------

                  Section 7.1 Notice and Election.
                              -------------------

                  The Committee shall provide a copy of this Plan and the
resolutions of adoption to each Director together with a form on which the
Director may notify the Committee of his election whether to become a
Participant, which letter, if he so elects, he may complete, sign and return to
the Committee.

                  Section 7.2 Construction and Language.
                              -------------------------

                  Wherever appropriate in the Plan, words used in the singular
may be read in the plural, words in the plural may be read in the singular, and
words importing the masculine gender shall be deemed equally to refer to the
feminine or the neuter. Any reference to an Article or section shall be to an
Article or section of the Plan, unless otherwise indicated. The headings of
Articles and sections are included solely for convenience of reference. If there
is any conflict between such headings and the text of the Agreement, the text
shall control.

                  Section 7.3 Non-Alienation of Benefits.
                              --------------------------

                  The right to receive a benefit under the Plan shall not be
subject in any manner to anticipation, alienation or assignment, nor shall
rights be liable for or subject to debts, contracts, liabilities or torts.

                  Section 7.4 Indemnification.
                              ---------------

                  Each Participating Company shall indemnify, hold harmless and
defend its Directors, Participants, and their Beneficiaries against their
reasonable costs, including legal fees, incurred by them or arising out of any
action, suit or proceeding in which they may be involved, as a result of their
efforts, in good faith, to defend or enforce terms of the Plan.

<PAGE>
                                       -10-

                  Section 7.5 Severability.
                              ------------

                  A determination that any provision of the Plan is invalid or
unenforceable shall not affect the validity or enforceability of any other
provision hereof.

                  Section 7.6 Waiver.
                              ------

                  Failure to insist upon strict compliance with any of the
terms, covenants or conditions of the Plan shall not be deemed a waiver of such
term, covenant or condition. A waiver of any provision of the Plan must be made
in writing, designated as a waiver, and signed by the party against whom its
enforcement is sought. Any waiver or relinquishment of any right or power
hereunder at any one or more times shall not be deemed a waiver or
relinquishment of such right or power at any other time or times.

                  Section 7.7 Governing Law.
                              -------------

                  The Plan shall be construed, administered and enforced
according to the laws of the Commonwealth of Massachusetts without giving effect
to the conflict of laws principles thereof, except to the extent that such laws
are preempted by the federal laws of the United States.

                  Section 7.8 No Deposit Account.
                              ------------------

                  Nothing in this Plan shall be held or construed to establish
any deposit account for any Participant or any deposit liability on the part of
the Bank or any other financial institution which is a Participating Company.
Participants' rights hereunder shall be equivalent to those of a general
unsecured creditor.

                  Section 7.9 Amendment and Termination.
                              -------------------------

                  (a) The Bank reserves the right, in its sole and absolute
discretion, at any time and from time to time, by action of the Board, to amend
the Plan in whole or in part. In no event, however, shall any such amendment
adversely affect the right of any Participant or Beneficiary to receive any
benefits accrued under the Plan on or before the later of the date on which such
amendment is adopted or the date on which it is made effective, without such
Participants or Beneficiary's consent.

                  (b) The Bank also reserves the right, in its sole and absolute
discretion, by action of the Board, to terminate the Plan. In such event, no
additional Fees shall be deferred from and after the later of the date on which
a resolution terminating the Plan is duly adopted by the Board or the effective
date of such termination, but benefits under the Plan shall continue to be
payable at the time and in the manner provided herein.

<PAGE>
                                      -11-

                  Section 7.10 Successors and Assigns
                               ----------------------

                  The provisions of the Plan will inure to the benefit of and be
binding upon the Participants and their respective legal representatives and
testate or intestate distributes, and each Participating Company and their
respective successors and assigns, including any successor by merger or
consolidation or a statutory receiver or any other person or firm or corporation
to which all or substantially all of the assets and business of any
Participating Company may be sold or otherwise transferred.<PAGE>
                              SEVENTH AMENDMENT TO
                      AMENDED AND RESTATED CREDIT AGREEMENT

         This Seventh Amendment to Amended and Restated Credit Agreement (this
"Amendment") is entered into effective as of May 9, 2001 between Bank One,
Michigan, fka NBD Bank ("Bank One"), PNC Bank, National Association
(collectively with Bank One, the "Banks"), with Bank One as agent for the Banks
(the "Agent"), Owosso Corporation ("Owosso"), Ahab Investment Company, DWZM,
Inc., Motor Products-Owosso Corporation, Snowmax Incorporated, Motor
Products-Ohio Corporation, GBMC, Inc., Stature Electric, Inc., Owosso Motor
Group, Inc., Astro Air Coils, Inc., f/k/a Astro Air Acquisition Corporation,
Cramer Company, f/k/a M.H. Rhodes, Inc., and Ahab International Investment
Company, f/k/a Astro Air UK, Limited (collectively, the "Borrowers").

                                    RECITALS

         This Amendment is based on the following recitals ("Recitals"), which
are incorporated into and made a part of this Amendment:

         1. The Banks and the Borrowers are parties to an Amended and Restated
Credit Agreement dated as of January 22, 1999, as amended by a First Amendment
to Amended and Restated Credit Agreement dated as of June 14, 2000, a Second
Amendment to Amended and Restated Credit Agreement dated as of September 28,
2000, a Third Amendment to Amended and Restated Credit Agreement, Revolving
Credit Note, Amended and Restated Pledge Agreement and Security Agreement dated
effective as of October 29, 2000, a Fourth Amendment to Amended and Restated
Credit Agreement, Revolving Credit Notes and Security Agreement dated as of
November 30, 2000, a Fifth Amendment to Amended and Restated Credit Agreement,
Revolving Credit Notes, Amended and Restated Pledge Agreement and Security
Agreement dated January 24, 2001 and an Amendment Agreement dated February 12,
2001 (the "Amendment Agreement") (as amended, the "Loan Agreement") and two
Revolving Credit Notes dated January 24, 2001 each running in favor of one of
the Banks (the "Notes") as well as various other documents executed previously,
simultaneously therewith or subsequently (all of the foregoing, including the
Loan Agreement, are collectively referred to as the "Loan Documents").

         2. Owosso has decided to sell substantially all of the assets of its
foreign subsidiary Astro Air UK, Limited pursuant to a Business Sale Agreement
dated as of May 11, 2001 between Astro Air UK, Limited and ACR Heat Transfer
Limited (the "Asset Sale"). Substantially simultaneous with closing of the Asset
Sale, Borrowers paid down certain of their outstanding obligations to the Banks
under the Loan Agreement. Borrowers have also indicated that certain financial
covenants may be violated as a result of the closing of the Sale Agreement and
have requested that the Banks waive any such defaults.

         3. In connection with the foregoing, the Borrowers have requested and,
subject to the terms hereof, the Banks have agreed to amend the Loan Agreement
as provided in this Amendment.

<PAGE>

                                    AGREEMENT
                                    ---------

         Based on the foregoing Recitals (which are incorporated herein as
representations, warranties, acknowledgments and agreements of the parties, as
the case may be) and for other good and valuable consideration, the receipt and
adequacy of which is mutually acknowledged by the parties hereto, Borrowers and
Banks agree effective upon consummation of closing of the Stock Purchase
Agreement as follows:

         A. The Loan Agreement and Amendment Agreement are amended as follows:

                  (1) The "commitment" of each of the Banks is hereby
         permanently reduced to the following amounts as of the effective date
         of this Agreement: for Bank One, $21,135,833.48, for PNC,
         $12,077,599.52 and collectively $33,213,433.00. Any borrowings in
         excess of the reduced commitments are immediately due and payable.

                  (2) Section 2.2(d) of the Loan Agreement is amended and
         restated in its entirety to read as follows:

                         "(d) The Commitments will additionally cumulatively
                  reduce by the following amounts (each a "Mandatory Reduction"
                  or an "Optional Reduction") at the following times in
                  accordance with the terms of this Section 2.2:
<TABLE>
<CAPTION>
                               Mandatory             Optional            Total Cumulative      New
Date                           Reduction             Reduction           Reduction             Commitment
----                           ---------             ---------           ----------------      ----------
<S>                              <C>                     <C>                <C>                   <C>
Simultaneous with close        $1,000,000                                $1,000,000            $33,213,433.00
of sale of Astro Air UK
assets
September 30, 2001             $1,000,000            $1,000,000          $3,000,000            $32,213,433.00(after
                                                                                               mandatory reduction)
                                                                                               $31,213,433.00 (if optional reduction
                                                                                               made)
December 31, 2001                                    $3,000,000          $6,000,000            $28,213,433.00 (if optional reduction
                                                                                               made)
</TABLE>

         Failure by the Borrowers to effectuate any Mandatory Reduction will
         constitute an Event of Default hereunder. Failure by the Borrowers to
         effectuate any Optional Reduction will not constitute an Event of
         Default hereunder but will result in an increase in the Floating Rate."

                  (3) Section 7(f) of the Amendment Agreement is amended and
         restated in its entirety to read as follows:

                           "(f) If the Borrowers' consolidated Operating Profit,
                  on a cumulative basis commencing February 1, 2001, is less
                  than the amount indicated below as of the end of each month
                  indicated below. For purposes of compliance with this Section
                  7(f), the calculation shall be made without inclusion of up to
                  $700,000 of impairment loss realized or taken as a result of
                  the effect of the sale of substantially all of the assets of
                  Astro Air UK, Limited pursuant to a Business Sale Agreement
                  dated as of May 11, 2001 between Astro Air UK, Limited and ACR
                  Heat Transfer Limited.

                                       2
<PAGE>
                                      2001
                                      ----
<TABLE>
<CAPTION>
February                 March           April          May            June            July           August
--------                 -----           -----          ---            ----            ----           ------
<S>                       <C>           <C>             <C>            <C>             <C>            <C>
(88,000)                 20,000          331,000        716,000        983,000         1,398,000      1,703,000

September                October            November       December
---------                -------            --------       ---------
1,950,000                2,447,000          2,483,000      2,624,000

                                      2002
                                      ----

                         January                       February
                         -------                       --------
                         2,840,000                    3,063,000"
</TABLE>

                  (4) The definition of "Floating Rate" in Section 1.1 of the
         Loan Agreement is amended and restated in its entirety as follows:

                  ""Floating Rate" means (a) as to amounts outstanding under the
                  Additional Amount, the per annum rate equal to the sum of 2%
                  plus the Prime Rate in effect from time to time and (b) as to
                  all other Borrowings, the per annum rate equal to the sum of 1
                  1/2% plus the Prime Rate in effect from time to time; which
                  Floating Rate shall change simultaneously with any change in
                  such Prime Rate; provided, however, that if the September 30,
                  2001 Optional Reduction required by Section 2.2(d) is not made
                  in its entirety, then the otherwise applicable Floating Rate
                  will increase by .75% per annum and if the December 31, 2001
                  Option Redemption required by Section 2.2(d) is not made in
                  its entirety, then the otherwise applicable Floating Rate will
                  increase by 1% per annum."

         B. The Notes are amended and restated in their entireties by the
Amended and Restated Revolving Credit Notes in the form of collective Exhibit A
hereto (the "New Notes").

         C. To the extent required under the terms of the Loan Documents,
provided that the Borrowers comply with the terms of this Agreement, the Banks
consent to Owosso entering into the Asset Sale and agree to terminate any liens
they may hold against the assets of Astro Air UK, Limited, a U.K. corporation.

         D. From and after the date of this Amendment, references in the Loan
Documents (i) to the Loan Agreement are to be treated as referring to the Loan
Agreement as amended by this Amendment, (ii) to the Notes are to be treated as
referring to the New Notes, and (iii) to "obligations", "Obligations", and
"liabilities" are to be treated as referring to all indebtedness and obligations
referred to in this Amendment or the Loan Documents.

         E. Subsequent to execution and delivery of this Amendment, Borrowers
must cause to be executed and delivered to the Banks such financing statements,
resolutions and other agreements that the Banks may reasonably require to
effectuate the transactions contemplated by this Amendment. Borrowers must pay
all costs and expenses (including attorneys' fees) incurred by the Banks in
connection with this Amendment.

                                       3
<PAGE>

         F. Each Borrower expressly acknowledges and agrees that (i) each
Borrower, jointly, jointly and severally, and severally remains liable for any
and all obligations and indebtedness under the Loan Documents other than
obligations and indebtedness under the Reimbursement Agreement and (ii) all
collateral security and security interests, liens, pledges, and mortgages
heretofore or hereafter granted the Banks including, without limitation, such
collateral, security interests, liens, pledges, and mortgages granted under the
Loan Documents, extend to and cover all of each Borrower's obligations to the
Banks, now existing or hereafter arising including, without limitation, those
arising in connection with this Amendment and under all guaranty agreements now
or in the future given by any Borrower in either Bank's favor, each Borrower's
present and future obligations to the Banks under foreign exchange contracts,
derivatives or hedging transactions, including but not limited to interest rate,
commodity, currency, or credit swaps or options that may be provided from time
to time by the Banks to the Borrowers, all of which security interests, liens,
pledges, and mortgages are ratified, reaffirmed, confirmed and approved.

         G. Each Borrower represents and warrants to the Banks that:

                  (1) (a) The execution, delivery and performance of this
         Amendment by the Borrowers and all agreements and documents delivered
         by Borrowers in connection with this Amendment have been duly
         authorized by all necessary corporate or other organizational action
         and does not and will not require any consent or approval of its
         stockholders or members, violate any provision of any law, rule,
         regulation, order, writ, judgment, injunction, decree, determination or
         award presently in effect having applicability to it or of its articles
         of incorporation, articles of organization, or bylaws, or result in a
         breach of or constitute a default under any indenture or loan or credit
         agreement or any other agreement, lease or instrument to which any
         Borrower is a party or by which it or its properties may be bound or
         affected.

                      (b) No authorization, consent, approval, license,
         exemption of or filing a registration with any court or governmental
         department, commission, board, bureau, agency or instrumentality,
         domestic or foreign, is or will be necessary to the valid execution,
         delivery or performance by Borrowers of this Amendment and all
         agreements and documents delivered in connection with this Amendment.

                      (c) This Amendment and all agreements and documents
         delivered by Borrowers in connection with this Amendment are the legal,
         valid and binding obligations of each Borrower enforceable against it
         in accordance with the terms thereof.

                  (2) After giving effect to the amendments contained in this
         Amendment, all of the representations and warranties contained in the
         Loan Documents are true and correct in all material respects on and as
         of the date hereof with the same force and effect as if made on and as
         of the date hereof, excluding any violations that may be caused by the
         sale of Sooner's stock and its removal as a Borrower under the Loan
         Documents.

                  (3) Each Borrower's interim financial statements furnished to
         the Banks, which have been provided through April 29, 2001, fairly
         present such Borrower's financial condition as at such dates and the
         results of such Borrower's operations for the periods indicated. The
         Borrowers' consolidated financial statements have been prepared in
         accordance with generally accepted accounting principles applied on a

                                       4
<PAGE>

         consistent basis, and since the date of the last such financial
         statement there has been no material adverse change in such financial
         condition.

         H. The terms and provisions of this Amendment amend, add to and
constitute a part of the Loan Agreement and the other Loan Documents. Except as
expressly modified and amended by the terms of this Amendment, all of the other
terms and conditions of the Loan Agreement and the other Loan Documents remain
in full force and effect and are ratified, reaffirmed, confirmed, and approved.

         I. If there is an express conflict between the terms of this Amendment
and the terms of the Loan Agreement or the other Loan Documents, the terms of
this Amendment govern and control.

         J. This Amendment may be executed in any number of counterparts with
the same effect as if all signatories had signed the same document. All
counterparts must be construed together to constitute one instrument.

         K. WAIVER OF JURY TRIAL.

         BORROWERS AND BANKS EACH ACKNOWLEDGE THAT THE RIGHT TO A TRIAL BY JURY
IS A CONSTITUTIONAL RIGHT, BUT THAT THE RIGHT MAY BE WAIVED. BORROWERS AND BANKS
EACH KNOWINGLY, VOLUNTARILY, IRREVOCABLY AND WITHOUT COERCION, WAIVE ALL RIGHTS
TO TRIAL BY JURY OF ALL DISPUTES BETWEEN THEM. NEITHER OF THE BANKS NOR ANY
BORROWER SHALL BE DEEMED TO HAVE GIVEN UP THIS WAIVER OF JURY TRIAL UNLESS THE
PARTY CLAIMING THAT THIS WAIVER HAS BEEN RELINQUISHED HAS A WRITTEN INSTRUMENT
SIGNED BY THE OTHER PARTY STATING THAT THIS WAIVER HAS BEEN GIVEN UP.

         L. RELEASE. AS OF THE DATE HEREOF EACH OF THE BORROWERS REPRESENTS AND
WARRANTS THAT THEY ARE AWARE OF, AND POSSESS, NO CLAIMS OR CAUSES OF ACTION
AGAINST EITHER OF THE BANKS OR THE AGENT. NOTWITHSTANDING THIS REPRESENTATION
AND AS FURTHER CONSIDERATION FOR THE AGREEMENTS AND UNDERSTANDINGS HEREIN, EACH
OF THE BORROWERS INDIVIDUALLY, JOINTLY, SEVERALLY, AND JOINTLY AND SEVERALLY, IN
EVERY CAPACITY, INCLUDING BUT NOT LIMITED TO, AS SHAREHOLDERS, OFFICERS,
PARTNERS, DIRECTORS, INVESTORS, OR CREDITORS OF ANY ONE OR MORE OF THE
BORROWERS, EACH OF ITS EMPLOYEES, AGENTS, EXECUTORS, SUCCESSORS AND ASSIGNS,
HEREBY RELEASES EACH OF THE BANKS AND THE AGENT, THEIR OFFICERS, DIRECTORS,
EMPLOYEES, AGENTS, ATTORNEYS, AFFILIATES, SUBSIDIARIES, SUCCESSORS AND ASSIGNS
FROM ANY LIABILITY, CLAIM, RIGHT OR CAUSE OF ACTION THAT NOW EXISTS, OR
HEREAFTER ARISES, WHETHER KNOWN OR UNKNOWN, ARISING FROM OR IN ANY WAY RELATED
TO FACTS IN EXISTENCE AS OF THE DATE HEREOF. BY WAY OF EXAMPLE AND NOT
LIMITATION, THE FORGOING INCLUDES ANY CLAIMS IN ANY WAY RELATED TO ACTIONS TAKEN
OR OMITTED TO BE TAKEN BY EITHER OF THE BANKS OR THE AGENT UNDER THE LOAN
DOCUMENTS, THE BUSINESS RELATIONSHIP WITH EITHER OF THE BANKS OR THE AGENT AND

                                       5
<PAGE>

ALL OTHER OBLIGATIONS OF ANY NATURE OR KIND OF ANY ONE OR MORE OF THE BORROWERS,
ANY ORAL AGREEMENTS OR UNDERSTANDINGS (ACTUAL OR ALLEGED), ANY BANKING
RELATIONSHIPS THAT ANY ONE OR MORE OF THE BORROWERS HAS OR MAY HAVE HAD WITH
EITHER OF THE BANKS AT ANY TIME AND FOR ANY REASON INCLUDING, BUT NOT LIMITED
TO, DEMAND DEPOSIT ACCOUNTS, OR OTHERWISE, BUT DOES NOT INCLUDE THE PARTIES'
FUTURE RIGHTS TO RECEIVE LOANS UNDER THE TERMS OF THE LOAN DOCUMENTS, AS AMENDED
BY THIS AGREEMENT, OR AS TO AMOUNTS ON DEPOSIT WITH EITHER OF THE BANKS OR STOCK
CERTIFICATES PLEDGED TO AND HELD BY EITHER OF THE BANKS AS COLLATERAL FOR THE
OBLIGATIONS.

<TABLE>
<CAPTION>
<S>                                                              <C>
BANK ONE, MICHIGAN, f/k/a                                     PNC BANK, NATIONAL ASSOCIATION
NBD BANK, individually and as Agent

By: /s/Barry J. Rourke                                        By: /s/ Frank P. Devine
                      -----------------------------                                  ---------------------

       Name: Barry J. Rourke                                           Name: Frank P. Devine
                            -----------------------                                         --------------

              Title: First Vice President                                       Title:Assistant Vice President
                                         ----------                                                           -----

OWOSSO CORPORATION                                            AHAB INVESTMENT COMPANY

By: /s/ John. M. Morrash                                      By: /s/ John. M. Morrash
                        ---------------------------                                   -----

       Name: John M. Morrash                                           Name: John M. Morrash
                            -----------------------                                         -----

              Title: EVP - Finance and CFO                                      Title:VP,Treasure& Secretary

DWZM, INC.                                                    MOTOR PRODUCTS-OWOSSO
                                                              CORPORATION

By: /s/ John. M. Morrash                                      By: /s/ John. M. Morrash
                        ---------------------------                                   -----

       Name: John M. Morrash                                           Name: John M. Morrash
                            -----------------------                                         -----

              Title: Secretary/Treasurer                                        Title: Secretary/Treasurer
                                        -----------                                                       ----------
</TABLE>

[Signatures continued on following page]

                                       6

<PAGE>

[Signatures continued from prior page]

<TABLE>
<CAPTION>
<S>                                                           <C>
SNOWMAX INCORPORATED                                          MOTOR PRODUCTS-OHIO
                                                              CORPORATION

By: /s/ John. M. Morrash                                      By: /s/ John. M. Morrash
                        ---------------------------                                   -----

       Name: John M. Morrash                                           Name: John M. Morrash
                            -----------------------                                         -----

              Title: Secretary/Treasurer                                        Title: Secretary/Treasurer
                                        -----------                                                       ------------

GBMC, INC.                                                    STATURE ELECTRIC, INC.

By: /s/ John. M. Morrash                                      By: /s/ John. M. Morrash
                        ---------------------------                                   -----

       Name: John M. Morrash                                           Name: John M. Morrash
                            -----------------------                                         -----

              Title: Secretary/Treasurer                                        Title: Secretary/Treasurer
                                        -----------                                                      ------------

OWOSSO MOTOR GROUP, INC.                                      ASTROAIR COILS, INC., f/k/a ASTRO AIR
                                                              ACQUISITION CORPORATION

By: /s/ John. M. Morrash                                      By: /s/ John. M. Morrash
                        ---------------------------                                   -----

       Name: John M. Morrash                                           Name: John M. Morrash
                            -----------------------                                         -----

              Title: Secretary/Treasurer                                        Title: Secretary/Treasurer
                                        -----------                                                       ----------------

CRAMER COMPANY, f/k/a M.H. Rhodes, Inc.                       AHAB INTERNATIONAL INVESTMENT COMPANY

By: /s/ John. M. Morrash                                      By: /s/ John. M. Morrash
                        ---------------------------                                   -----

       Name: John M. Morrash                                           Name: John M. Morrash
                            -----------------------                                         -----

              Title: Secretary/Treasurer                                        Title: Secretary/Treasurer
                                        -----------                                                       -----------------

</TABLE>

                                       7

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