Document:

DEFERRED COMPENSATION AGREEMENT

         THIS AGREEMENT, made this ________ day of ________ by and between THE
FIDELITY DEPOSIT & DISCOUNT BANK, Dunmore, Pennsylvania, a banking corporation
organized under the laws of the Commonwealth of Pennsylvania (the "Bank") and
______________________ residing in ________________, Pennsylvania (the
"Officer").

                                   WITNESSETH

THAT, in consideration of the Agreements hereinafter contained, the parties
hereto agree as follows:

                                    ARTICLE I
                                   EMPLOYMENT

     1.1 The Officer has been employed by the Bank since _________________ and
presently serves in the capacity of ________________________________.

     1.2 The Bank agrees to continue to employ the Officer in capacity
of____________________________ and the Officer agrees to serve the corporation
in that capacity or in such other capacity as the Board of Directors of the Bank
(the "Board") may designate from time to time, and continuing until terminated
by either party on at least thirty (30) days prior written notice to the other
party.

     1.3 During the term of his/her employment, the Officer shall devote all of
his time, attention, skill and efforts to the performance of his duties for the
Bank.

     1.4 The Bank shall pay the Officer such salary payable biweekly as the
Board may from time to time determine, but not less than his present salary.

                                   ARTICLE II
                            DEFERMENT OF COMPENSATION

     2.1 The Officer shall each year designate the amount of his annual
compensation which is to be deferred during the following year. He/she shall
make his election on the Deferment of Compensation Election Letter attached
hereto by inserting the amount, dating the letter and signing it prior to
January 1 of the year in which he is to render the services for which he is to
be compensated.

     2.2 The deferred portion of the Officer's compensation will not be paid him
as it is earned by him. Rather, the Bank shall in equal biweekly installments
credit to an account called "Deferred Compensation Account" the amount of the
Officer's deferred compensation.

<PAGE>

     2.3 There shall be credited to the Deferred Compensation Account, monthly,
an additional amount (i.e., in addition to the amount of deferred compensation
credited to the Deferred Compensation Account pursuant to Section 2.2 above)
equal to interest which would have been earned on the amount in said Deferred
Compensation Account if said amount had earned interest, compounded monthly as
follows:

     Interest rate to be paid on this account will be ____________________

                                   ARTICLE III

                                  DISTRIBUTIONS

     3.1 At the time designated for distribution the amount credited to the
Officer in the Deferred Compensation Account shall be distributed to the Officer
or his beneficiary as provided in this Plan.

     3.2 The Officer, or, in the event of his death, a beneficiary properly
designated in writing by him, will receive distributions beginning on the first
day of the calendar quarter occurring after whichever of the following events
occurs to the Officer:

          A. Termination of employment for any reason whatsoever; or

          B. Death of the Officer.

     3.3 Starting with the first year of distribution, Bank shall make
distribution in five (5) annual installments. The amount of such installments
shall be one-fifth (1/5) of the fair market value of the Deferred Compensation
Account as determined on the anniversary date of distribution in the first year,
one-fourth (1/4) of the fair market value of the Deferred Compensation Account
as determined on the anniversary date of distribution in the second year, etc.,
until distribution of an amount equal to the fair market value of the Deferred
Compensation Account has been completed.

     3.4 However, should the Officer attain the retirement age while still
employed by the Bank, the Officer shall begin minimum distributions on a monthly
basis. The amount of the distributions will be determined by the Board of
Directors based upon the Deferred Compensation Account balance at the time of
qualification.

     3.5 In the event the Officer shall die prior to receiving any payments
under Section 3.3 above, or before the five (5) annual payments are made, the
unpaid balance will continue to be paid in installments for the unexpired
portion of such five (5) year period to his designated beneficiary in the same
manner as set forth above.

<PAGE>

     3.6 The Officer shall designate his beneficiary on the beneficiary
designation form attached hereto. The Officer reserves the right to change said
beneficiary at any time. If no beneficiary shall have been designated, or if no
designated beneficiary shall survive the Officer, the unpaid balance shall be
paid in installments to the Officer's spouse if living, otherwise to the
officer's children - per stirpes; otherwise to the Officer's executor or
administrator in a lump sum.

                                   ARTICLE IV

                            MISCELLANEOUS PROVISIONS

     4.1 Nothing contained in this agreement and no action taken pursuant to the
provisions of this Agreement shall create or be construed to create a trust of
any kind, or a fiduciary relationship between the Bank and the Officer and his
designated beneficiary or any other person.

     4.2 Any compensation deferred under the provisions of this Agreement, and
interest credited thereto under Section 2.3 shall continue for all purposes to
be a part of the general funds of the Bank. To the extent that any person
requires a right to receive payments from the Bank under this Agreement, such
rights shall be no greater than the right of an unsecured general creditor of
the Bank.

     4.3 Nothing contained herein shall be construed as conferring upon the
Officer the right to continue in the employee of the Bank in any capacity.

     4.4 The interest of the Officer and any beneficiary designated by him under
this Agreement shall not be subject to alienation, assignment, garnishment,
attachment, execution or levy of any kind.

     4.5 The Board shall have full power and authority to interpret, construe
and administer this Agreement and the Board's interpretations and construction
thereof, and actions thereunder, shall be binding and conclusive on all persons
for all purposes. The Board, in its discretion, may appoint a Committee of not
less than three (3) Directors to administer this Agreement.

     4.6 This Agreement shall be binding upon and inure to the benefit of the
Bank, its successors and assigns and the Officer and his heirs, executors,
administrators and legal representatives.

     4.7 This Agreement shall be construed in accordance with and governed by
the law of the Commonwealth of Pennsylvania.

<PAGE>

     IN WITNESS WHEREOF, the Bank has caused this Agreement to be executed by
its duly authorized officers and the Officer has hereunto set his hand and seal
as of the date first above written.

                                        The Fidelity Deposit and Discount Bank

ATTEST:

                                        By:
--------------------------------------     -------------------------------------
              Secretary                                 President

                                        ----------------------------------------
                                                       Participant

<PAGE>

                    DEFERMENT OF COMPENSATION ELECTION LETTER

To the Board of Directors:

     In accordance with the Deferred Compensation Agreement entered into between
THE FIDELITY DEPOSIT AND DISOCUNT BANK and ________________________

Dated _______________,_______________, I hereby request to defer receipt of
compensation earned by me for services rendered in the respective calendar years
specified below. I will make the election each year by inserting the amount to
be deferred and affix my signature thereto prior to January 1 of the year in
which I will render services for which I am to be compensated.

                       AMOUNT TO                 DATE
YEAR                   BE DEFERRED               SIGNED              SIGNATURE
----                   -----------               ------              ---------

<PAGE>

BENEFICIARY DESIGNATION FOR DEFERMENT OF COMPENSATION

     I hereby designate the following as death beneficiaries under Section 3.5
of the Deferred Compensation Agreement between THE FIDELITY DEPOSIT AND DISCOUNT
BANK and __________________________________.

     1. My primary beneficiary is:

        Name:

        Address:

     2. My contingent beneficiary is:

Dated:
      ---------------------------------

                                               ---------------------------------
                                                           Signature<PAGE>

                                                               Execution Copy
                                                               (revised 6/15/00)

            FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

         THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as
of June 14, 2000 (this "Amendment"), is by and among OWOSSO CORPORATION, a
Pennsylvania corporation ("Owosso"), AHAB INVESTMENT COMPANY, a Delaware
corporation ("Ahab"), DWZM, INC., a Pennsylvania corporation, formerly known as
DewEze Manufacturing, Inc. ("DWZM"), THE LANDOVER COMPANY, a Pennsylvania
corporation, and the survivor of the merger with Snyder Industries Group, Inc.,
a Washington corporation ("Landover"), MOTOR PRODUCTS-OWOSSO CORPORATION, a
Delaware corporation ("Motor Products"), SNOWMAX, INCORPORATED, a Pennsylvania
corporation ("Snowmax"), SOONER TRAILER MANUFACTURING CO., a Delaware
corporation ("Sooner"), MOTOR PRODUCTS-OHIO CORPORATION, a Delaware corporation
("Motor Products-Ohio"), GBMC, INC., a Kansas corporation, formerly known as
Great Bend Manufacturing Company, Inc. ("GBMC"), STATURE ELECTRIC, INC., a New
York corporation ("Stature"), OWOSSO MOTOR GROUP, INC., a Pennsylvania
corporation ("Motor Group"), ASTRO AIR COILS, INC., a Delaware corporation
formerly known as Astro Air Acquisition Corporation ("Astro Air"), M. H. RHODES,
INC., a Delaware corporation, and the survivor of the merger with Cramer
Company, a Delaware corporation ("Rhodes"), and AHAB INTERNATIONAL INVESTMENT
CO., a Delaware corporation formerly known as Astro Air UK Holdings, Inc. ("Ahab
International" and, together with Owosso, Ahab, DWZM, Landover, Motor Products,
Snowmax, Sooner, Motor Products-Ohio, GBMC, Stature, Motor Group, Astro Air and
Rhodes collectively, the "Borrowers" and, individually, a "Borrower"), BANK ONE,
MICHIGAN, a Michigan banking corporation formerly known as NBD Bank and before
that as NBD Bank, N.A. ("Bank One"), PNC BANK, NATIONAL ASSOCIATION, a national
banking association ("PNC" and, together with Bank One, collectively, the
"Banks" and, individually, a "Bank"), and BANK ONE, MICHIGAN, as agent (in such
capacity, the "Agent") for the Banks.

                                  INTRODUCTION

         A. The Borrowers, the Banks and the Agent have entered into the Amended
and Restated Credit Agreement, dated as of January 22, 1999, as amended or
modified from time to time (the "Credit Agreement").

         B. The Borrowers, the Banks and the Agent now desire to amend the
Credit Agreement on the terms and conditions herein set forth.

         NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein and in the Credit Agreement contained, the parties hereto
agree as follows:

                    ARTICLE 1. AMENDMENTS TO CREDIT AGREEMENT

         Upon the date that the conditions precedent set forth in Article 2 of
this Amendment are satisfied, which date (the "Amendment Date") shall be
determined by the Agent in its sole discretion, the Credit Agreement hereby is
amended as follows, with such amendments set forth in Sections 1.1 through 1.5
below deemed retroactively effective as of April 30, 2000 and such amendment set
forth in Section 1.6 below deemed effective as of the Amendment Date:

<PAGE>

         1.1 The following definitions of the terms "Acquisition" and
"Disposition", respectively are added to Section 1.1 of the Credit Agreement in
alphabetical order:

             "Acquisition" shall mean any transaction, or any series of related
         transactions, by which any of the Borrowers or any of their respective
         Subsidiaries (a) acquires any going business or all or substantially
         all of the assets of any firm, corporation, partnership or limited
         liability company, or division or business unit thereof, whether
         through purchase of assets, merger, consolidation or otherwise or (b)
         directly or indirectly acquires (in one transaction or as the most
         recent transaction in a series of transactions) at least a majority (in
         number of votes) of the securities of a corporation which have ordinary
         voting power for the election of directors (other than securities
         having such power only by reason of the happening of a contingency) or
         a majority (by percentage or voting power) of the outstanding ownership
         interests of a partnership or limited liability company.

             "Disposition" shall mean any transaction, or any series of related
         transactions, by which any of the Borrowers or any of their respective
         Subsidiaries (a) sells, leases, licenses, transfers, assigns or
         otherwise disposes of any going business or all or substantially all of
         the assets of any of them or (b) sells, transfers, assigns or otherwise
         disposes of, directly or indirectly (in one transaction or as the most
         recent transaction in a series of transactions), a majority (in number
         of votes) of the securities of any of its Subsidiaries which have
         ordinary voting power for the election of directors (other than
         securities having such power only by reason of the happening of a
         contingency) or a majority (by percentage or voting power) of the
         outstanding ownership interests of any of its Subsidiaries that is a
         partnership or limited liability company.

         1.2 The definition of the term "EBIT" set forth in Section 1.1 of the
Credit Agreement is amended and restated in full as follows:

             "EBIT" of any person shall mean, for any period, the after-tax net
         income of such person for such period (exclusive of any non-recurring
         gains or losses for such person's fiscal year 1998, and any tax effects
         thereof, and exclusive of the following nonrecurring items as so
         identified on the financial statements of the Borrowers delivered to
         the Banks for the fiscal quarter ended January 31, 2000: Power Gear
         warranty in the amount of $275,000, Parker warranty in the amount of
         $170,000, E & J bankruptcy in the amount of $130,000, Workers'
         Compensation reserve in the amount of $500,000 and Snowmax warranty in
         the amount of $500,000, and any tax effects thereof) plus, to the
         extent deducted in determining such after-tax net income for such
         period, (a) Interest Charges of such person for such period, and (b)
         income and other taxes determined by reference to profits of such
         person for such period. No exclusion of any gains or losses from the
         calculation of EBIT for any period shall allow deferral of those items
         to any subsequent period.

                                      -2-
<PAGE>

         1.3 The following sentence is added to the end of Section 1.2 of the
Credit Agreement:

             Notwithstanding anything in this Agreement, in any financial
         statements of the Borrowers or in generally accepted accounting
         principles to the contrary, for purposes of calculating and determining
         compliance with the financial covenants in Section 5.2 and determining
         the Applicable Margin, including defined terms used therein, any
         Acquisition or Disposition by the Borrowers or any of their respective
         Subsidiaries, including any related financing transactions, during the
         period for which such financial covenants and the Applicable Margin
         were calculated shall be deemed to have occurred on the first day of
         the relevant period for which such financial covenants and the
         Applicable Margin were calculated on a pro forma basis acceptable to
         the Required Bank. Nothing in this Section 1.2 shall limit or otherwise
         affect the requirements of Sections 5.2(g) and 5.2(h).

         1.4 Section 2.2(b) of the Credit Agreement is amended and restated in
full as follows:

             (b) In addition, the commitment amounts for the Banks automatically
         shall reduce (i) in the aggregate amount of $2,500,000 on December 31,
         1999, (ii) in the additional aggregate amount of $2,500,000 on December
         31, 2000, (iii) in the additional aggregate amount of $2,500,000 on the
         Amendment Date (as defined in the First Amendment to this Agreement)
         and (iv) in the additional aggregate amount of $2,500,000 on December
         31, 2001. Notwithstanding anything herein to the contrary, any such
         reduction shall not occur if all the Banks agree in writing with
         respect to such reduction in their sole discretion.

         1.5 Section 5.2(b) of the Credit Agreement is amended and restated in
full as follows:

             (b) Total Debt to EBITDA. Permit or suffer the ratio of
         Consolidated Total Debt of the Borrowers and their Subsidiaries as of
         the end of any fiscal quarter of the Borrowers to Consolidated EBITDA
         of the Borrowers and their Subsidiaries for the period of four fiscal
         quarters of the Borrowers then ending to be greater than (i) 3.50 to
         1.00 from and including the last day of the Borrowers' fiscal year
         ending on or about October 31, 1999 to and including the day
         immediately preceding the last day of the Borrowers' fiscal quarter
         ending on or about April 30, 2000, (ii) 3.75 to 1.00 from and including
         the last day of the Borrowers' fiscal quarter ending on or about April
         30, 2000 to and including the day immediately preceding the last day of
         the Borrowers' fiscal year ending on or about October 31, 2000, (iii)
         3.50 to 1.00 from and including the last day of the Borrowers' fiscal
         year ending on or about October 31, 2000 to and including the day
         immediately preceding the last day of the Borrowers' fiscal quarter

                                      -3-
<PAGE>

         ending on or about January 31, 2001, (iv) 3.25 to 1.00 from and
         including the last day of the Borrowers' fiscal quarter ending on or
         about January 31, 2001 to and including the day immediately preceding
         the last day of the Borrowers' fiscal year ending on or about October
         31, 2001, and (v) 3.00 to 1.00 from and including the last day of the
         Borrowers' fiscal year ending on or about October 31, 2001 and
         thereafter.

         1.6 New Section 5.2(o) of the Credit Agreement is added as follows:

             (o) Dividends and Other Restricted Payments. Make, pay, declare or
         authorize any dividend, payment or other distribution in respect of any
         class of its common stock or any dividend, payment or distribution in
         connection with the redemption, purchase, retirement or other
         acquisition, directly or indirectly, of any shares of its common stock
         other than such dividends, payments or other distributions to the
         extent payable solely in shares of the capital stock of Owosso or to
         the extent payable to Owosso by a wholly-owned Subsidiary of Owosso,
         provided, however, that, if no Default or Event of Default shall exist
         or shall have occurred and be continuing and no Default or Event of
         Default under any other provision of this Agreement would result
         therefrom, Owosso may make, pay, declare or authorize dividends,
         payments and other such distributions in respect of its common stock,
         during the period of 30 days immediately following the end of its
         fiscal quarter ending on or about July 31, 2000, which, in the
         aggregate, do not exceed $355,000. For purposes of this Section 5.2(o),
         (i) "capital stock" shall include capital stock (including common and
         preferred stock) and any securities exchangeable for or convertible
         into capital stock and any warrants, rights or other options to
         purchase or otherwise acquire capital stock or such securities, and
         (ii) "common stock" shall include common stock and any securities
         exchangeable for or convertible into common stock and any warrants,
         rights or other options to purchase or otherwise acquire common stock
         or such securities.

                  ARTICLE 2. CONDITIONS PRECEDENT TO AMENDMENTS

         As conditions precedent to the effectiveness of the amendments to the
Credit Agreement set forth in Article 1 of this Amendment, the Agent shall
receive the following documents and the following matters shall be completed,
all in form and substance satisfactory to the Agent:

         2.1 This Amendment duly executed on behalf of the Borrowers and the
Banks.

         2.2 Payment to the Agent for the pro rata account of the Banks of a fee
for this Amendment in the amount of $50,000 in immediately available funds,
which fee shall be deemed earned upon receipt and shall not be refundable.

                    ARTICLE 3. REPRESENTATIONS AND WARRANTIES

         In order to induce the Banks to enter into this Amendment, each
Borrower represents and warrants that:

                                      -4-
<PAGE>

         3.1 The execution, delivery and performance by the Borrower of this
Amendment are within its corporate powers, have been duly authorized by all
necessary corporate action and are not in contravention of any law, rule or
regulation, or any judgment, decree, writ, injunction, order or award of any
arbitrator, court or governmental authority, or of the terms of the Borrower's
charter or by-laws, or of any contract or undertaking to which the Borrower is a
party or by which the Borrower or its property is or may be bound or affected.

         3.2 This Amendment is a legal, valid and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its terms.

         3.3 No consent, approval or authorization of or declaration,
registration or filing with any governmental authority or any nongovernmental
person or entity, including without limitation any creditor or stockholder of
the Borrower, is required on the part of the Borrower in connection with the
execution, delivery and performance of this Amendment or the transactions
contemplated hereby or as a condition to the legality, validity or
enforceability of this Amendment.

         3.4 After giving effect to the amendments contained in Article 1 of
this Amendment, the representations and warranties contained in Article IV of
the Credit Agreement and the representations and warranties contained in the
Security Documents are true on and as of the date hereof with the same force and
effect as if made on and as of the date hereof, and no Event of Default or
Default has occurred and is continuing.

                            ARTICLE 4. MISCELLANEOUS

         4.1 If the Borrowers shall fail to perform or observe any term,
covenant or agreement in this Amendment, or any representation or warranty made
by the Borrowers in this Amendment shall prove to have been incorrect in any
material respect when made, such occurrence shall be deemed to constitute an
Event of Default.

         4.2 All references to the Credit Agreement in any Security Document or
any other document, instrument or certificate referred to in the Credit
Agreement or delivered in connection therewith or pursuant thereto, hereafter
shall be deemed references to the Credit Agreement, as amended hereby.

         4.3 The Security Documents, any and all certificates or financing
statements executed pursuant to the Credit Agreement or in connection therewith
and, subject to the amendments herein provided, the Credit Agreement shall in
all respects continue in full force and effect and are hereby ratified and
confirmed.

         4.4 Capitalized terms used but not defined herein shall have the
respective meanings ascribed thereto in the Credit Agreement.

         4.5 This Amendment shall be governed by and construed in accordance
with the laws of the State of Michigan.

         4.6 The Borrowers jointly and severally agree to pay the reasonable
fees and expenses of Dickinson Wright PLLC, counsel for the Agent, in connection
with the negotiation and preparation of this Amendment and the documents
referred to herein and the consummation of the transactions contemplated hereby,
and in connection with advising the Bank as to its rights and responsibilities
with respect thereto.

                                      -5-
<PAGE>

         4.7 This Amendment may be executed upon any number of counterparts with
the same effect as if the signatures thereto were upon the same instrument.

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

                                                OWOSSO CORPORATION

                                                By: /s/ George B. Lemmon, Jr.
                                                    ----------------------------
                                                    George B. Lemmon, Jr.
                                                President and CEO

                                                DWZM, INC. and GBMC, INC.

                                                By: /s/ George B. Lemmon, Jr.
                                                    ----------------------------
                                                    George B. Lemmon, Jr.
                                                The President of each company

                                                THE LANDOVER COMPANY,
                                                MOTOR PRODUCTS-
                                                OWOSSO CORPORATION,
                                                SNOWMAX, INCORPORATED,
                                                MOTOR PRODUCTS -
                                                OHIO CORPORATION, STATURE
                                                ELECTRIC, INC., OWOSSO
                                                MOTOR GROUP, INC., ASTRO
                                                AIR COILS, INC., SOONER
                                                TRAILER MANUFACTURING
                                                CO. and M.H. RHODES, INC.

                                                By: /s/ George B. Lemmon, Jr.
                                                    ----------------------------
                                                    George B. Lemmon, Jr.
                                                A Vice President of each company

                                                AHAB INVESTMENT COMPANY
                                                and AHAB INTERNATIONAL
                                                INVESTMENT CO.

                                                By: /s/ George B. Lemmon, Jr.
                                                    ----------------------------
                                                    George B. Lemmon, Jr.
                                                The President of each company

                                                BANK ONE, MICHIGAN,
                                                individually and as Agent

                                                By: /s/ William C. Goodhue
                                                    ----------------------------
                                                Name: William C. Goodhue
                                                      --------------------------
                                                Title: First Vice President
                                                       -------------------------

                                                PNC BANK, NATIONAL
                                                ASSOCIATION

                                                By: /s/ Heidi Bahmueller
                                                    ----------------------------
                                                Name: Heidi Bahmueller
                                                      --------------------------
                                                Title: Assistant Vice President
                                                       -------------------------

                                      -6-

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