Exhibit 10(u) [CONFORMED COPY] AMENDMENT NO. 2 TO CREDIT AGREEMENT AMENDMENT dated as of June 18, 1993 among BLOUNT, INC. (the "Borrower"), the BANKS listed on the signature pages hereof (the "Banks") and MORGAN GUARANTY TRUST COMPANY OF NEW YORK, as Agent (the "Agent"). W I T N E S S E T H : WHEREAS, certain parties hereto have heretofore entered into a Credit Agreement dated as of December 23, 1992 (as heretofore amended, the "Agreement"); and WHEREAS, the parties hereto desire to amend the Agreement to increase the aggregate amount of the Commitments of the Banks from $50,000,000 to $60,000,000, to add the New Bank as a party to the Agreement as amended hereby and to provide for changes in the respective Commitments of the Banks; NOW, THEREFORE, the parties hereto agree as follows: SECTION 1. Definitions; References. Unless otherwise specifically defined herein, each term used herein which is defined in the Agreement shall have the meaning assigned to such term in the Agreement. Each reference to "hereof", "hereunder", "herein" and "hereby" and each other similar reference and each reference to "this Agreement" and each other similar reference contained in the Agreement shall from and after the date hereof refer to the Agreement as amended hereby, and all references to "Note" or "Notes" shall include the New Note. SECTION 2. New Bank; Changes in Commitments. With effect from and including the date this Amendment becomes effective in accordance with Section 4 hereof, (i) ABN-AMRO Bank, N.V. (the "New Bank") shall become a Bank party to the Agreement, (ii) the aggregate amount of the Commitments of the Banks shall be increased from $50,000,000 to $60,000,000, and (iii) the Commitment of each Bank shall be Page 71 the amount set forth opposite the name of such Bank on the signature pages hereof, as such amount may be reduced from time to time pursuant to Section 2.07 of the Agreement. SECTION 3. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York. SECTION 4. Counterparts; Conditions to Effectiveness. This Amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Amendment shall become effective when the Agent shall have received: (a) duly executed counterparts hereof signed by the Borrower and each of the Banks (or, in the case of any party as to which an executed counterpart shall not have been received, the Agent shall have received telegraphic, telex, telecopy or other written confirmation from such party of execution of a counterpart hereof by such party); (b) a duly executed Note for the New Bank (the "New Note"), dated on or before the date of effectiveness hereof and otherwise in compliance with Section 2.03 of the Agreement; (c) an opinion of counsel for the Borrower, addressed to the Banks and the Agent, in form satisfactory to the Agent, as to the corporate authorization for and the validity of this Amendment and the Agreement as amended hereby, and such other mattters as the Agent may reasonably request; and (d) all documents that the Agent may reasonably request relating to the existence of the Borrower, the corporate authority for and validity of this Amendment and the New Note, and any other matters relevant hereto, all in form and substance satisfactory to the Agent. Page 72 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written. BLOUNT, INC. By /s/ Ronald K. Gorland Title: Treasurer Commitments $12,000,000 MORGAN GUARANTY TRUST COMPANY OF NEW YORK By /s/ Steven A. Tulip Title: Vice President $12,000,000 CONTINENTAL BANK N.A. By /s/ Timothy J. Pepowski Title: Vice President $12,000,000 NATIONSBANK OF GEORGIA, N.A. By /s/ John Stakel Title: Vice President $12,000,000 SOUTHTRUST BANK OF ALABAMA, N.A. By /s/ J. Neel Elliott Title: Vice President Page 73 Commitments $12,000,000 ABN-AMRO BANK, N.V. By /s/ Thomas Dawe Title: Vice President By /s/ W. Patrick Fischer Title: Senior Vice President - - ---------------- Total Commitments $60,000,000 MORGAN GUARANTY TRUST COMPANY OF NEW YORK, as Agent By /s/ Steven A. Tulip Title: Vice President Page 74